Guide
Creative payments on a seller note (illustrated)
Play with down payment, carry, rate, and term—see how cash flows might look on paper. Education only; your lawyers turn this into a binding note.
We help you advertise your business to buyers. We are not your broker and we do not give tax or legal advice. Talk to your own lawyer and accountant for your situation.
Two businesses can transact for the same headline price and feel completely different to the buyer and seller depending on how cash is scheduled. A larger down payment might mean a lower risk premium. A longer carry might mean a higher multiple but more tail risk. There is no universal "best" shape—only the one that matches risk tolerance, liquidity, and the story both sides believe.
What this calculator is (and is not)
The interactive model below is here to make the abstraction concrete. It shows one possible amortization-style path for illustrative payments—not tax treatment, not covenant packages, not security interests, and definitely not the document you sign at closing.
Before a handshake becomes a note
- Have counsel draft or review the promissory note and any security agreements.
- Agree on what happens late: cure periods, default, and remedies you can live with.
- Stress-test the buyer's ability to service debt under conservative revenue cases.
- Align the seller's post-close involvement, if any, with how payments are earned.
When those pieces are right, creative finance stops being a buzzword and becomes a structure both sides can explain—to each other, to a lender, and to the mirror.