In the United States it's common for sellers of small businesses to accept 25 to 50% down, and carry back the rest as owner financing. What is the norm in Thailand?

There is n norm. It's up to the buyer and seller to decide. If I sold a business I'd want 100% up front.

Although I agree that buyers and sellers decide on the ultimate terms, market conditions will create some norms. Consider the example of the norms in the USA I mentioned: sellers are often willing to carry back 50 to 75% of a business loan on something they no longer control because of the lack of small business financing options in the US (to be clear, they do exist, but they are relatively scarce). If financing were more readily available, then this would of course be very different.

PS: You're not the only one who wants 100% up front, All sellers do. At least in the US when they find the difference between an all cash price vs a price that involves some financing, they tend to become more flexible with their terms.

Edited July 21, 201411 yr by Hal65

Sunbelt would be able to give very a accurate answer to this question

as they sell businesses every day and have so for many years

Google Sunbelt Thailand. Legal advisors

However since there is very little rule of law and given that corruption and dishonesty

is rampant, it will be an unusual seller who would accept less than

50-75% down in my opinion. And most I would guess would want 100% all cash.

JMHO

They want 100% up front and later you will see them skipping into the sunset. Buyer Beware.

BTW, nobody sells a profitable business, do your due diligence.

I'm trying to understand what your asking

You are asking do business here offer vendor finance? if you put give a deposit of 50% 25% or 75%?

As in Australia, if you want to buy a small business it virtually impossible to get finance for a business unless you are a home owner with equity or 65% deposit

So to Thailand, it would only be 5% of business sales that would offer vendor finance that i have ever seen, most don't do it as it too risky plus if your a westenter no hope.

Its nothing like our countries, and as far as a bank here lending you money to buy or set up a business no hope. Unless you had a wealthy Thai wife in that case you wouldn't need finance.

Only thing that i have seen is when you know a wealthy Thai and you borrow from them i have seen this happen a few times

There is n norm. It's up to the buyer and seller to decide. If I sold a business I'd want 100% up front.

Yep! especially seeing there will probably be no profit.

I know of 2 companies in Thailand that provide 50% finance options Asia BackPackers and I-Rovers luxury apartments

No rule or practice; to my knowledge I think it’s most common with cash payment – if bought from Thais real genuine cash money...

Thanks for the good discussion and direction on who to contact further.

Some posters asked what I was asking about. To clarify, here's a difference between third-party financing (from banks and other finance companies) and seller financing a.k.a. owner carryback financing.

With seller financing, the owner of the business agrees to a down payment followed by installment payments on the balance plus interest.

The benefit of the seller doing this is a significantly higher purchase price. Others have brought up the excellent point that Thailand does not have a good rule of law, making this arrangement far riskier to the seller.