According to data from the 2022 Small Business Credit Survey by the Federal Reserve Banks, 53 percent of employer firms use personal funds in response to financial challenges. The same survey found that 66 percent of surveyed small businesses used personal funds or funds from loved ones as a form of financing within the past five years. With owner financing, the consequences of defaulting are similar to a traditional loan and are guided by the terms of the written owner financing agreement. Generally, a default will allow the owner to initiate foreclosure proceedings per the rules in their state. Data from Redfin suggest seller-financed transactions are up 12% year-over-year, pushing sector analysts to evaluate the ripple effect on publicly traded mortgage servicing firms.