Hal65 Posted July 20, 2014 Share Posted July 20, 2014 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? Link to comment Share on other sites More sharing options...
ldnguy Posted July 21, 2014 Share Posted July 21, 2014 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. Link to comment Share on other sites More sharing options...
Hal65 Posted July 21, 2014 Author Share Posted July 21, 2014 (edited) 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, 2014 by Hal65 Link to comment Share on other sites More sharing options...
paulfr Posted July 22, 2014 Share Posted July 22, 2014 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 Link to comment Share on other sites More sharing options...
shirtless Posted July 22, 2014 Share Posted July 22, 2014 They want 100% up front and later you will see them skipping into the sunset. Buyer Beware. 1 Link to comment Share on other sites More sharing options...
inzman Posted July 22, 2014 Share Posted July 22, 2014 BTW, nobody sells a profitable business, do your due diligence. Link to comment Share on other sites More sharing options...
Craig351 Posted July 22, 2014 Share Posted July 22, 2014 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 Link to comment Share on other sites More sharing options...
oldsailor35 Posted July 22, 2014 Share Posted July 22, 2014 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. Link to comment Share on other sites More sharing options...
brain1 Posted July 22, 2014 Share Posted July 22, 2014 I know of 2 companies in Thailand that provide 50% finance options Asia BackPackers and I-Rovers luxury apartments Link to comment Share on other sites More sharing options...
khunPer Posted July 22, 2014 Share Posted July 22, 2014 No rule or practice; to my knowledge I think it’s most common with cash payment – if bought from Thais real genuine cash money... Link to comment Share on other sites More sharing options...
Hal65 Posted July 24, 2014 Author Share Posted July 24, 2014 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. Link to comment Share on other sites More sharing options...
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