I would expect that it isn't so much about the direct financial tradeoffs so much as the question of - will you actually continue to pay on the loan agreement,

I would expect that it isn't so much about the direct financial tradeoffs so much as the question of - will you actually continue to pay on the loan agreement, and what are my realistic options if you decide not to? The first would require quite a lot of expensive, invasive due diligence on your ability to pay that people selling software businesses don't care to perform or pay somebody else to perform. The second is likely to be lousy. Options are likely to be to file a lawsuit, which is expensive, and try to collect if you win, which may or may not be possible, and is almost certainly very time-consuming. If you're selling a software business, you're mostly likely doing it because you don't want to bother with it anymore. You are very unlikely to suddenly decide you want to start up what is effectively a bank for one guy. I'd tell anyone who says they can't afford a lump sum to try to get a loan from an actual bank, because I have no interest in pretending to be one.