Seller financing can make ownership possible without a seven-figure bank account. Here's what you're actually agreeing to when a seller carries part of the note.
If you don't have $1M+ sitting in cash, a seller-financed deal is often the only realistic path to ownership — and it's more common than you'd think.
A seller note fills the gap between your down payment, an SBA loan, and the full purchase price. It also tends to signal something important to any bank involved: the seller believes in the practice's future enough to bet their own money on it. That confidence can meaningfully improve your ability to get the rest of the deal financed.
Seller notes aren't standardized — everything here is negotiable, but these are the typical ranges you'll encounter.
If your deal includes an SBA 7(a) loan, the SBA will typically require the seller's note to go on full standby for roughly 24 months — meaning the seller receives no payments during that window, while you pay only your SBA loan. This isn't a red flag; it's a standard structure. But it does mean the seller's note balance keeps accruing interest at a rate they may negotiate upward to compensate, which affects your total repayment obligation once standby ends.
Important Disclaimer: The information on this page is for educational purposes only and does not constitute legal, financial, or tax advice. Every practice sale is unique. PracticeAmerica strongly recommends consulting a healthcare M&A attorney, a CPA experienced in medical practice transactions, and a financial advisor before making any decisions regarding a practice purchase or sale.
Browse listings on PracticeAmerica where sellers are already open to financing terms — no guesswork about what's negotiable.