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hi there Im dance Blaine president of designing financial solutions and today were going to look at funding the buy sell agreement well look at the first funding from company surplus or asset liquidity several thoughts here most surplus cash is being used in other areas for example expansion or buying a property theres no guarantee the funds will be there in the event of a co-owner departure sinking fund essentially a savings account that relies on the discipline of the owners to keep putting the money away funds are not likely to be available in the event of a premature departure of a co-owner borrowing usually the most expensive option especially when interest rates and costs are rising the ability to borrow may also be compromised the installment agreement this may be favorable from a tax standpoint for the recipient as the monies have spread out over years it doesnt work if the heirs need cash and is always the risk of a default life insurance move to the rescue well there are