Vendor Finance Agreementswith expert lawyers

A Vendor Finance Agreement is an agreement between a vendor and purchaser under which the vendor agrees to lend all or part of the purchase price of a business to the purchaser. It is typically used where the purchaser does not have enough funds to buy the business in full, so the seller agrees to ‘loan’ part of the purchase price to the buyer for a set period at an agreed interest rate.

A Vendor Finance Agreement should clearly set out the details of the arrangement. Common terms include:

• the parties to the agreement
• the exact amount being borrowed
• the interest rate
• how often repayments must be made
• the length of the arrangement
• the form of the loan

Having a lawyer draft and review your Vendor Finance Agreement can help reduce the risk of issues or disputes later on.

Offering vendor finance requires careful consideration of the legal issues involved and the need to protect both parties’ rights. Properly documenting the transaction is one of the best ways to minimise risk.

A lawyer can work closely with you and your business to help you agree on terms that are best suited to protect your interests.

Our fixed-fee Vendor Finance Agreement packages start at $900 + GST. This includes a Vendor Finance Agreement drafted to meet your specific requirements, phone consultations with a Sprintlaw lawyer, and one complimentary amendment to the final draft we provide.

Our legal team is made up of experienced commercial lawyers with strong backgrounds in contracts, privacy, employment, intellectual property, corporate, and general business law. For Sprintlaw NZ, legal services are provided by Australian- and UK-qualified lawyers who are familiar with the New Zealand legal requirements relevant to the business matters we support.