A Vendor Finance Agreement offers an alternative solution to obtaining finance for property or a business and has benefits and risks for both the seller and buyer.
In a Vendor Finance Agreement, a Seller (vendor) may enter into a Vendor Finance Agreement to lend the Buyer (purchaser) capital to fund some or all of the purchase price for the business or goods or services that the vendor is selling. This allows the buyer to purchase a business, property, or goods even when they do not have the full finances available at the time of purchase.
- Repayment schedules.
- Parties to the agreement.
- Security to be provided by the borrower.
- Interest rates.
- Liability protection.
- Consequences and mechanisms for default.
- Length of agreement.
The team at The Small Business Lawyer are experts in property and commercial matters, so we can review or draft a Vendor Finance Agreement so you can understand and be assured of your obligations and rights before signing.