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.