{
  "title": "What is a seller note? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-a-seller-note/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-22",
  "updated": "2026-10-22",
  "section": "Glossary",
  "keyword": "Seller note (seller financing)",
  "short_answer": "A seller note (seller financing) is the part of the purchase price that the seller lends to the buyer instead of taking in cash at closing. The buyer repays it over a set term with interest, usually out of the cash flow of the business. In small-business deals it is commonly 5% to 30% of the price.",
  "facts": {
    "Purchase price": [
      "$1,500,000",
      "$1,500,000"
    ],
    "Cash at close (buyer equity + SBA loan)": [
      "$1,200,000",
      "$1,200,000"
    ],
    "Seller note": [
      "$300,000 (20% of price)",
      "$300,000 (20% of price)"
    ],
    "Interest rate": [
      "7%",
      "7%"
    ],
    "Term": [
      "5 years",
      "7 years"
    ],
    "Annual payment": [
      "$73,167",
      "$55,666"
    ],
    "Total paid": [
      "$365,836",
      "$389,662"
    ],
    "Total interest": [
      "$65,836",
      "$89,662"
    ]
  },
  "sources": [
    "https://www.investopedia.com/terms/o/owner-financing.asp",
    "https://www.sba.gov/funding-programs/loans/7a-loans",
    "https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}