What To Do When a Business Buyer Stops Paying on the Seller’s Payment Plan

Selling your business might be in your best interest for a variety of reasons. While each business owner has individual insights into what might be best for the business, a new set of minds could launch the business into greater success. Those with an entrepreneurial spirit might jump at an opportunity to do just that. Some business owners decide to offer seller financing, setting up a payment plan with the new owner. When that arrangement starts to head south and the buyer stops payments, what should the seller do?

Have the Courage To Stand Up to the Buyer

It can be intimidating to stand up to the buyer of your company, demanding that he or she give you the next payment. Sometimes the buyer is a former partner, a colleague, a friend, or even a family member. To protect your own financial interests, you have to put forth the courage it requires to get what you are owed. It might not turn out how you want it to turn out, and there could be some damaged relationships along the way, but you have to do what is best for you.

Contact a Lawyer To Learn More

There are going to be a lot of things you’ll have to do and routes you’ll have to take to get the money the buyer owes you. A business lawyer from a law firm like Brown Kiely LLP who has dealt with similar situations could be your best option for making sure you know exactly what to do and how to do it. 

Chances are you are going to have a lot of questions that your lawyer will be able to answer. You might be hesitant to take some required steps, and your lawyer can provide that moral support you’re going to need.

File a Lawsuit To Gain What You Are Entitled To

If worse comes to worst and you have to file a lawsuit against the buyer, then that is what you should do. Your lawyer can walk you through the process so your documents say the right things and so you complete the process correctly and completely. Again, some relationships could be damaged along the way, but sometimes you have to make those sacrifices so you don’t end up in bankruptcy yourself. If a first lawsuit doesn’t work out, you might even file a second.

Making Sure To Get Started Right Away

As someone who offered seller financing to someone who was purchasing his or her business, you are entitled to protection under the law. Contact a business lawyer to make sure you get started right away with the process of getting the money you are owed.