The 'red flag' for me is why any business owner would offer 100% financing? If the business is doing well, a buyer would have no problem getting bank financing. If I sell you a business that is failing badly, and provide 100% financing, where is my risk? None. The business is worthless in the first place, and now you have just agreed to pay me $***,*** for this business. You are on the hook to pay me, regardless of the condition of the business. The very first thing I would do would be to ask for audited financial statments and tax returns for the past three years. Then decide if this is something you want to do.

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Gordon