Can I finance my child's purchase of the business myself instead of using a bank?

Yes, seller financing is common in Ontario business sales generally, family or not, and it works the same way here. It's typically structured as a vendor take-back, where you accept payment over time instead of a lump sum at closing and take security — commonly registered against the business's personal property, and a mortgage if real property is involved — to protect the amount still owed.

This can make a family sale far more workable when the purchasing child can't get full bank financing on their own, but it also means you're carrying real risk if the business underperforms or your child struggles to make payments. The purchase agreement should spell out the payment terms, what security you're taking, and what happens if a payment is missed, just as it would for an arm's-length vendor take-back. Treating it informally because it's family tends to cause exactly the kind of disputes a properly documented arrangement is meant to prevent, so put the same care into the paperwork you would for any buyer.