A buyer and seller of a family business are unable to use weekly payments from the business to the seller as vendor finance due to tax rules that treat it as the business buying its own shares, and increasing the buyer's salary to make direct payments would cause a significant tax burden.

Existing business structure and tax advice do not offer a tax-efficient way to structure a vendor finance arrangement where the business makes periodic payments to the seller without triggering adverse tax treatment.

Severity

4High

Willingness to Pay

implied

Added

Apr 29, 2026

App Concept

VendorLoan Structurer

A software platform that helps small business owners structure vendor finance buyouts tax-efficiently by modeling optimal payment structures (e.g., personal loans, share redemptions, earn-outs) and generating legal and tax-compliant documents. It integrates with accounting tools to ensure payments are correctly classified and provides scenario analysis to minimize tax impact.

Key Features

Tax-efficient vendor finance scenario modeling
Automated generation of loan agreements and payment schedules
Integration with Xero, QuickBooks, and other accounting software
Tax impact calculator with real-time adjustments for salary vs. loan payments

Target Users: Small business owners in field services and other trades who are buying or selling a business with seller financing.

Revenue Model: $99/month subscription for individual buyers/sellers; $499/month for accounting firms to use with multiple clients

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