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Vendor Finance Agreement

Vendor Finance Agreement

Vendor Finance Agreement

Vendor finance is a form of lending where the vendor (seller) lends money to the borrower (buyer) for the borrower to use to buy the seller’s business or property. The term of such arrangement is documented in a vendor finance agreement.  It often forms part of a sale of business or sale of property.

Vendor finance is often used when the buyer has issues getting a bank loan for the purchase, or if the seller is unable to get the price it's looking for from other buyers. As such, vendor finance comes with its risks and it is important to have the arrangement properly documented.

Vendor Finance Legal Services

West Perth Legal’s Commercial Lawyers can assist you with drafting, reviewing, and negotiating a Vendor Finance Agreement.

Our lawyers can assist you with:

  • Advising on the risks of a vendor finance arrangement
  • Mitigating risks to the vendor through methods such as taking security over assets
  • Identifying the appropriate type of contract and contractual clauses to use
  • Drafting a Deed of Priority so that the vendor has priority against third party lenders
  • Preparing director’s or personal guarantees
  • Preparing a mortgage over property or a specific security agreement over assets
  • Preparing a Power of Attorney so the vendor can exercise control over the business assets if there is a default
  • Drafting details of the loan and terms of repayment such as interest rate and repayment schedule
  • Advising you of the rights and obligations under an existing Vendor Finance Agreement

West Perth Legal Advantage

West Perth Legal provides regular drafting services on a full range of commercial contracts. Our Commercial Lawyers have assisted many local businesses and individuals with their legal contract needs.  We offer fixed fees for regular legal documents.

Frequently Asked Questions



We are very happy with your service. You are very honest with what you recommend, you have fair pricing and actually listen to the situation before giving advice.  You provide great feedback and has a good response time. 

- J.P.

Business Owner

David Shi has been an excellent lawyer for my company over the past 3 years providing advice on contracts, litigation, and arbitration. Very satisfied with the timeliness, professional approach, and advice for my business and personal needs. I would highly recommend David’s services!

-Talha Khan

MediXys Consulting

West Perth Legal helped me with the purchase of my café business, including drafting and finalising the sale and purchase agreement, reviewing the retail lease and attending settlement. David walked me through the business purchase process and highlighted the risk areas and how to minimise them. I highly recommend West Perth Legal.

- Jinkyoung Kim

The Electric Bean Co.

David has been regularly helping us with our retail leases over the past few years. His advice and service is consistently prompt and professional. I have no hesitation in recommending him.

- Davyd Hooper

Stellar Property Group

Perth Commercial Lawyer

We have helped hundreds of clients with their commercial legal needs.

Contact us for an obligation free quote or speak to our Commercial Lawyer for a confidential and complimentary discussion.

Transparent Pricing
Fixed Fees For Regular Documents
Obligation Free Quote
Complimentary 15 Minute Initial Telephone Consult

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