Seller finance sounds technical, but at its core it is about clarity and rapport between the seller and the buyer.

When I speak with founders about it, the worries are rarely about spreadsheets, numbers etc.. They are about risk, trust and what happens to the people inside the business after the sale.

This is not a guide to the mechanics. It is more about how seller finance feels from a founder’s side and why it can protect you when it is used properly.

In simple terms, seller finance is when a buyer does not pay the full price on day one. You receive part up front and part over time.

On paper, that sounds straightforward however emotionally, it raises a few common fears from founders:

There are deals where those fears are valid. If a buyer is under prepared and simply wants you to act as their bank, you are right to be cautious.

There is another version though. In a lot of small and mid sized deals, seller finance is used as a way to share risk fairly, keep the business stable through the transition and make a good deal possible without loading the business with heavy bank debt. That version is much more founder friendly than it first appears.

Most founders I talk to care less about the structure and more about a few simple questions. Even if they do not ask them directly, they are usually thinking:

You do not build trust by skipping over these. If a buyer jumps straight into technical talk and ignores these questions, it usually feels like they are preparing you for an ask.

A good buyer explains in plain English how the payments work, what is guaranteed, what depends on performance and what happens in both good and bad scenarios. That is where trust starts.

For a long time, the picture many founders had in mind was simple. Build the business, sell it one day for a full up front price, walk away. In some larger deals that still happens, especially with big corporate or private equity buyers. In the small and mid sized space, especially in the current market in the UK, that version is less common. Banks are more careful, buyers have to think more about risk. The gap between what a founder hopes to get and what a lender is happy to back can be wide.

Seller finance is one way that gap is bridged. Instead of forcing a buyer to borrow heavily or cut the price down, you can choose to take a solid amount up front and the rest over time as the business continues to perform.

That does not mean you simply absorb the risk. Done properly, the structure solidify security, timing and clear triggers, so you are not just relying on hope.

Seller finance often increases your chances of finding the right buyer, not just the richest.

A buyer who genuinely wants to run and grow the business, keep your team stable  and look after your clients is usually more willing to agree to a structure where part of the price is linked to how the business performs after the handover. They are comfortable being judged on how they run it.

A buyer whose only plan is to strip the business, cut hard or even flip quickly tends to dislike that kind of structure. They prefer to pay and disappear.

In that sense, seller finance is a filter. It rewards buyers who want to be good long term stewards and makes life harder for buyers who are only chasing a fast financial outcome. That can matter a lot if you care who takes over your work.

One of the biggest worries I hear from founders is not “Will I get paid?” but “What happens to my people?”

A full cash deal with a rushed handover can create pressure to make sharp changes early. The buyer has tied up a lot on day one, so they feel an urge to act fast. That can mean reorganisations, quick cuts or changes that unsettle the team. With a fair seller finance structure, both sides have a reason to keep the business stable through the transition. You still have a stake in how it performs. The buyer knows that sudden disruption can hurt results and damage trust with you.

That shared interest usually leads to a clearer handover plan, more involvement from you during the first months and a slower, more thoughtful changes.

For the team, that means less shock, fewer surprises and a better chance that culture and stability are preserved.

In that context, a mix of up front payment and seller finance can create a better overall outcome:

It is not about squeezing the last possible pound out of the deal. It is about balancing three things: a fair price, a smooth transition and the right owner for the next chapter.

Let’s be honest here, there is still a few things to be aware of on both side when seller finance is proposed.

Buyers sometimes:

Sellers sometimes:

Good alignment looks simpler than people expect. Terms that both sides can repeat without notes. A structure you can explain to someone you trust without feeling uneasy.

At its best, seller finance is not a trick and not a hack. It is a tool for:

If you think of it that way, it becomes less about “the buyer cannot afford me” and more about “we are both making sure this is fair and sustainable”.

If you run an e commerce digital agency and are curious or cautious about seller finance, I would be happy to hear how you see it from your side.

Thanks for reading,
Jordan