Seller note

Definition

Part of the price the seller finances, repaid to them after closing.

Why It Matters

A listing that says seller financing or owner financing means this. It keeps the seller invested in a clean handoff and stretches your cash across the gap the bank will not cover, which is why almost every SBA deal carries one. But when the note counts toward your equity injection it falls under strict standby rules, so how it is structured decides whether it actually lowers the cash you bring to close.

In numbers: On a $4M purchase, $400k of buyer cash plus a $600k seller note leaves $3M for the bank loan; the note keeps the seller answering the phone through the transition.