Understand down payment, seller notes, debt service coverage, and why a deal can be attractive but still difficult to finance.
Video 16 min
Chapters
00:00
Cash down and borrower readiness
What buyers should know before asking lenders for options.
05:20
Seller financing and SBA fit
Why the structure matters as much as the asking price.
10:45
Debt service coverage
A plain-English explanation of whether cash flow can carry the loan.
Key takeaways
The cheapest deal is not always the easiest deal to finance.
Seller financing can reduce lender risk and buyer cash pressure.
Debt service coverage should be checked before emotional commitment.
Financing is not just a final step after finding a business. It shapes which deals are worth pursuing from the beginning.
The first lender conversation
A buyer should be ready to discuss purchase price, SDE, revenue, cash down, seller note, transition plan, and basic market context. The stronger the package, the faster lenders can tell you which paths are realistic.