Paying for a business: how the buyer pays the seller

Once you agree to buy and sell a business, the purchase price has to be paid. On Sitavo, payment goes directly from buyer to seller — or via an escrow arrangement you agree on yourselves. Sitavo does not receive, hold or pass on the money. Instead, the deal process guides you through the payment and documents every step, so you can both see what has happened and when.

How the payment step works

1. Once you have both confirmed the agreement, the deal moves to Payment. The seller states where the money should go: a Danish account (reg. no. and account number), a foreign account (IBAN and BIC) or Escrow.
2. The buyer taps Register payment and sees the account and the payment reference (the deal number). Transfer the amount with the reference.
3. The buyer confirms with I have paid the seller and can add the payment method, a note and a receipt (optional).
4. The seller checks that the money is in the account and taps Payment received — or Payment not received if it has not arrived.
5. The handover then starts. See the deal process step by step.

Deadlines

• The agreement must be confirmed and the payment registered within 14 days. Otherwise you get a warning, and the deal is cancelled if nothing happens.
• The seller must confirm the payment within 7 days and receives reminders. If the seller reports neither “received” nor “not received” after the last reminder, the payment is confirmed automatically.
• If you need more time, you can extend the deadline together in the deal.

Ways to pay

Bank transfer

The most common method for smaller deals. For larger amounts, the buyer often needs to arrange the transfer with the bank in advance so the money leaves on the agreed day. A transfer from abroad can take several banking days.

Escrow with a lawyer or escrow service

In larger deals the buyer often pays a third party — typically a lawyer’s client account or an escrow service — who pays the seller once the conditions are met, for example that the domain has been transferred or the shares registered. If the seller chooses the Escrow account type, they look up the escrow agent by name or CVR number and enter the payment instructions. The buyer pays as instructed, and the seller confirms once the amount has been received from escrow. Sitavo is not a party to the escrow: you agree terms and price directly with the lawyer or service.

Payment in instalments with a loan agreement

If the seller has said yes to seller financing, you can create a loan agreement in the deal. The buyer pays a down payment now and the rest in instalments at a fixed interest rate. You choose the down payment, interest rate, number of instalments (monthly or quarterly), first due date, any retention of title and a debt collection agency in case of default. Both of you accept the agreement electronically, and it is locked as a PDF. The payment step then only covers the down payment, and the instalments are tracked in an overview with reminders before each due date. Read more about financing a business acquisition.

Earn-out

With an earn-out, part of the purchase price depends on the business’s results after the takeover. It can be stated directly in the offer and written into the purchase agreement. The deferred part is a risk for the seller, so agree on security and what happens if payment is not made, and talk to a lawyer and an accountant about the tax consequences.

Protect yourselves against fraud

• Only pay to an account in the seller’s own name, the selling company’s name or the escrow agent named in the deal.
• If the seller changes the account details after you have seen them, you get a clear warning. Call the seller and confirm the new account before you pay. Sitavo never changes account details by email or message.
• Be especially careful with requests for payment to foreign accounts, cryptocurrency, gift cards or payment outside the deal.
• Seller: only tap Payment received when the money is in your account — not based on a receipt or a screenshot.

Proof of purchase, invoice and VAT

Once the deal is completed, you can both download a free receipt and proof of purchase as PDF in the deal. This is Sitavo’s documentation of the deal, not an invoice. If the business’s assets are sold, an invoice usually has to be issued. If the whole business or an independent part of it is transferred, the sale may be exempt from VAT if the conditions in the Danish VAT Act are met; share sales follow other rules. Talk to your accountant before you agree on the price. See the seller guide chapter on asset or share sale.