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Compare Seller Financing Proposals With AI and a Spreadsheet

Prepare clear comparisons of seller notes, cash at closing and acquisition funding requirements.

Original website companion resource. Published October 9, 2026. This guide is not an excerpt or a claim about the original book chapters.

Translate terms into comparable fields

Seller financing can change the timing and allocation of acquisition funding. Start with purchase price, cash at closing, note principal, interest rate, payment schedule, maturity, collateral and any contingent consideration. Record conditions that affect payment or enforceability. AI can extract proposed terms from authorized draft documents. A lender, attorney and finance owner should confirm how the documents and financing fit together.

Separate payment math from document interpretation

Use a spreadsheet or financial calculator for scheduled payments and total interest. Ask AI to explain the structure in plain language and identify undefined terms. A fully amortizing note differs from a note with a balloon at maturity. A note with deferred principal differs from one with ordinary monthly amortization. Model the actual schedule rather than assuming every proposal uses the same payment convention.

An illustrative side-by-side comparison

Proposal A requires $400,000 at closing and a $200,000 seller note. Proposal B requires $300,000 at closing and a $300,000 seller note. Both describe a $600,000 purchase price, but the buyer cash requirement and future payment obligations differ. Add professional fees, initial working capital and reserves to each scenario. Lower closing cash does not establish lower total cost or better operating fit.

Use an extraction prompt

Ask: Extract each proposal into a table containing price, closing cash, note amount, interest, payment frequency, amortization period, maturity, balloon, security, subordination and unresolved conditions. Quote short relevant clauses and identify their locations. Mark ambiguous fields for attorney review. Do not decide whether a provision is enforceable. List the inputs needed for a spreadsheet payment schedule without inventing them.

Approve a sustainable funding structure

Compare projected operating cash with the actual debt schedule and working capital requirements. Specify who handles payments, reporting and covenant tracking after closing. Ask the model to prepare a draft calendar from confirmed terms, then verify every date against signed documents. A useful financing review ends with understandable payment obligations, approved calculations and a business that can support the chosen structure.

Continue learning

Read the book companion guide and explore the related AI workflows.