LONDON, March 7, 2013 /PRNewswire/ --
US business buyers are eight times more likely to obtain a loan from the seller than their UK counterparts, a BusinessesForSale.com survey has revealed.
Nearly one in three (31%) US-based prospective buyers said they expected to raise finance through seller financing - whereby the seller plays the role of a bank and accepts payment of a portion of the asking price by instalment - compared to only one in 25 (4%) buyers domiciled in the UK.
Globally, one in 10 business buyers expect to fund an acquisition through seller finance, according to the poll of thousands of buyers, sellers and brokers from around the world (See more detailed survey analysis here: http://uk.businessesforsale.com/uk/info/surveys/surveyresults.aspx).
Seller financing, which is also known as owner financing, has increasingly bridged the funding gap created by the credit crunch - but more so across the Atlantic.
Asked whether they had noticed seller finance becoming more common and/or extensively used since 2007, 85% of US-based business brokers answered affirmatively, with 48% strongly agreeing. For UK-based business-sales professionals these figures were much lower, at 47% and 16% respectively, with 37% professing to have noticed no significant change.
US buyers were also twice as likely to use angel investors and business angels, 10% versus 5%. UK buyers have more frequently resorted to leveraging their equity, with 15% of UK buyers re-mortgaging their home compared to only 4% of US buyers.
http://uk.BusinessesForSale.com CEO and co-founder Andrew Markou says:
"The survey results expose a cultural difference between the US and UK in terms of how deals are funded in the business-sales marketplace. With no prospect of bank lending ever recovering to pre-credit crunch levels, business sellers are well advised to at least consider seller finance as part of the deal.
"Yes, it means they have to wait for their money. However, seller finance can help to attract buyers as it serves as a vote of confidence in both the business and the buyer."
http://BusinessesForSale.com is the world's largest website for buying and selling businesses online with more than 61,000 business listings and more than one million unique visitors every month.
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