Listen To Our Most Recent Podcast Episodes As Soon As They're Live: Here!

Can You Get Paid in Full When Selling an Online Business?

Posted by Izach Porter in Articles

Getting a good price for your company isn’t helpful unless you are truly getting paid for it. One of the most common questions brought to us as online business brokers here at Website Closers is to figure out how to get paid in full when you sell a website business.

Most sellers recognize the benefits associated with their company but struggle in translating this to prospective buyers or the ability to get paid in full at the time of closing. There are many different things that you need to do in order to get the selling price up to a great number to begin with and also paid in full at closing.

Be Aware of These Buyer’s Limitations

Very few buyers will have the money upfront to be able to pay you in full for the selling price of your website business. Even fewer will have the cash and want to do so. Most buyers know that by borrowing a portion of the purchase price, they can enhance the returns they get on their investment.

They will most likely look for a larger business to buy if they truly have the cash and will want to borrow part of the purchase price from a lender or from you. A buyer must have a down payment, a good enough credit score, and business expertise to convince the lender that they will be successful in running your company. Lenders will also look at things such as interest on loans, being paid off, discretionary benefits taken out of the business or one-time expenses that the buyer won’t have to accommodate for.

How to Get Paid in Full

One of the best ways to get paid in full when selling your website business is to consider these buyers’ opportunity to get connected to working with a lender. When working with a lender, the lender will evaluate details from tax returns to determine what the business truly makes. If the tax returns show no or little cash flow, this is likely to stop a buyer from being able to get a loan from a lender. Not showing all of the income on the tax return also makes it that much harder to sell the business and increases the chances that you will have to finance the sale.

If getting paid in full is not an option, talk over the best terms with your business broker to figure out what will work for you.

One of the best ways to move through this process is to have the support of an experienced professional in the field who can tell you more about what you can expect with every different aspect of selling your company, whether it is getting paid or how to list your company for the best price and receiving offers from compelling buyers.

An online business broker is the best way to up-level your chances of success and dramatically improve your ability to sell your website to the right company in a timely fashion and for as much money as possible.