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ARTICLE · 29 MAY 2024

It Depends – What is vendor finance and why should I use it?

Cooper Grace Ward
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Transcript & link to video discussing what is vendor finance & why you should use it.

AustraliaFinance and Banking

In this edition of It depends, lawyer Alfred Jackson talks about what vendor finance is and why you might use it.

Video transcript

Hi, my name's Alfred and I'm a solicitor in the private client team of Cooper Grace Ward. And in this edition of It depends, I'll be talking about what is vendor finance and why should I use it? So, what is vendor finance?

What is vendor finance?

As the name indicates, it's finance that's provided by the vendor.

Why should I use vendor finance?

So, why might I use vendor finance? The first reason is, if the vendor is struggling to obtain finance, you can step in and provide, you know, a deferred purchase price arrangement to help get the deal across the line. However, goes without saying, if the purchaser is struggling to obtain finance, you might need to pause and wonder why the bank or someone else is unwilling to provide finance, and you should do your due diligence first. Another reason you might provide vendor

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This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please contact Cooper Grace Ward Lawyers.

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