Financing math
Side-by-side comparison of total cost, monthly payment, and time-to-close for SBA 7(a) versus seller-financed ecommerce acquisitions. Free. No signup.
Side-by-side on $1,080,000 of financing
Total cost favors whichever path has the lower rate × term product. Most real deals blend both — SBA on the majority, seller note on the tail, sometimes on standby to double-count as equity injection.
Straight amortization comparison — balloons, interest-only periods, and step-up structures are not modeled. Use the Loan Calculator for full cash-flow modeling, and the DSCR Calculator to confirm either path clears SBA underwriting minimums.
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Seller financing typically prices 3–5 points below the SBA rate (think 6–8% vs 10.5–12.5%), but it amortizes over a shorter term (3–7 years vs 10). On a standard purchase, seller financing wins on total interest if the rate spread is wide enough; SBA wins on monthly cash flow because it spreads the payment over a longer term.
Three reasons: (1) it's the only way the buyer can afford the asking price, (2) it stretches the seller's tax liability over multiple years instead of a lump-sum gain in year 1, (3) it signals confidence in the business — a seller willing to carry paper is putting ongoing skin in the game, which strengthens the deal for all parties.
Yes — this is how most non-trivial deals actually close. The SBA 7(a) covers the majority of the purchase price, and the seller carries a 5–15% note on the back end. If the seller note is on full 24-month standby (no P&I), SBA will count it toward the buyer's equity injection, cutting the cash-to-close materially.
Seller notes often include a balloon at the end of the term — e.g., a 5-year note with amortization calculated on a 10-year schedule and the remaining balance due at year 5. This calculator uses straight amortization to keep the comparison apples-to-apples. Build a proper cash flow in the Loan Calculator if you want to model balloons.
A clean SBA 7(a) acquisition usually takes 60–90 days from LOI to funded — longer if there are appraisal delays, lease assignments, or documentation gaps on the seller side. A straight seller-financed deal can close in 21–45 days if both sides have counsel aligned. Fast-closing isn't a coincidence — it's often why sellers offer the note in the first place.