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Payment Terms

April 13, 2006

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Aside from terms relating to what you are selling with the business, terms relating to payment are the most important, and need to be generally agreed upon before the letter of intent is signed. Needless to say, payment terms can have a big impact on the price you'll accept for your business, as well as on the price the buyer is able and willing to pay.

Some of the payment terms that you may want to consider are:

• the down payment
• seller financing
• earnouts
• escrow arrangements
• stock as payment

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