How to Finance Your Worker Coop

For business owners who are considering selling their company to their employees, one of the first questions is often how the sale can be financed. As with any small business loan or investment, there are a range of options as to the sources and types of capital. A selling business owner and the potential new worker owners need to think carefully about how to finance the sale of the business, and the timeline and terms of payback.

In this article, we outline the typical ways that business conversions to worker cooperatives are financed, including seller-financing, worker-financing, debt, equity (including direct public offerings), and crowd-funding.

Read the rest at Nolo.com

 

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