Resources
Industry Resources
Research tools, regulatory guides, and industry reference materials for seller finance professionals. Member resources and public FAQs.
Resource Library
Industry Tools & Reference Materials
SFSB is building the definitive resource library for seller finance professionals. Here is what is on the roadmap.
State Licensing Guide
Coming SoonA comprehensive state-by-state guide to seller finance licensing requirements — covering note broker licensing, loan originator requirements, usury limits, and state-specific regulatory nuances for all 50 states.
Regulatory Tracker
Member BenefitA member benefit tracking active state and federal legislative and regulatory developments affecting seller-financed transactions in real time. Stay current without the research overhead.
Industry Glossary
Coming SoonA comprehensive reference glossary of seller finance terms, from amortization and balloon payments to yield-to-maturity and UCC lien searches — with SFSB-approved definitions.
Market Data Reports
Member BenefitPeriodic SFSB market reports on seller finance transaction volume, pricing trends, note performance data, and secondary market activity — compiled from member and partner data sources.
Industry FAQ
Frequently Asked Questions About Seller Financing
Clear answers to the most common questions about how seller financing works, who regulates it, and how SFSB fits in.
What is seller financing?
Seller financing (also called owner financing) is a transaction in which the seller of a business provides a loan to the buyer to help fund the purchase price. Instead of — or in addition to — a bank loan, the buyer makes monthly payments directly to the seller under the terms of a promissory note secured by the business assets or real estate.
Is seller financing common in small business transactions?
Yes. Seller financing appears in a significant portion of small business acquisitions, particularly in the lower middle market (businesses with $500K–$5M in revenue). Lenders like SBA 7(a) often require seller participation as a condition of approval, making it a structurally embedded component of the small business M&A ecosystem.
Who regulates seller financing?
Seller financing in business transactions is regulated at both the federal and state levels, though business-to-business transactions generally face fewer restrictions than residential mortgage lending. Key federal frameworks include the Dodd-Frank Act (with business-purpose exemptions), while state laws govern usury, licensing, and foreclosure procedures. The regulatory environment varies significantly by state.
What is a note broker?
A note broker is a professional who facilitates the purchase and sale of seller-financed promissory notes in the secondary market. Note brokers connect note holders (sellers) with note investors (buyers), typically earning a fee at closing. Some states require note brokers to hold a mortgage broker or loan originator license.
What is the SFA®?
The SFA® — Certified Seller Finance Advisor — is the professional certification administered by the Seller Finance Standards Board. It is the industry's first rigorous, proctored credential for seller finance practitioners, covering legal frameworks, note structuring, credit analysis, pricing methodology, due diligence, servicing, and ethics across a 100-hour, 10-module curriculum.
What is a partial purchase?
A partial purchase is a note investment in which the investor purchases only a subset of the remaining payments on a seller-financed note — rather than all remaining payments. For example, an investor might purchase the next 36 payments of a 72-payment note, with the seller retaining the remaining 36 payments after the investor's position is satisfied.
What is DSCR in seller finance underwriting?
DSCR — Debt Service Coverage Ratio — measures a business's ability to service its debt obligations from operating cash flow. In seller finance underwriting, DSCR is calculated as net operating income divided by annual debt service (principal plus interest on the seller note, plus any senior debt). A DSCR below 1.0x indicates the business does not generate enough cash flow to cover the note payment.
How are SFSB standards developed?
SFSB standards are developed through a six-step process: research and drafting by the Standards Committee, legal review by the Legal & Regulatory Committee and outside counsel, a 60-day member comment period, Board approval by vote, publication with member access, and annual review and update. See the Standards page for details.
Unlock Full Resource Access
SFSB members receive access to the full resource library including the Regulatory Tracker, Market Data Reports, and the complete SFSB standards form library.
Become a Member