M&A GLOSSARY
Seller Note
Seller Financing
Financing provided by the seller to the buyer.
What does Seller Note mean?
Financing provided by the seller to the buyer. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Seller Note in context
A business seller accepts a $300,000 note as part of the purchase price.
Why it matters in financing
Seller Note can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related m&a terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.