What Is Vendor Finance?
Vendor finance is when the seller agrees to finance part of the purchase price.
Instead of the buyer paying 100% upfront, a portion is paid over time.
Why Sellers Offer Vendor Finance
It can:
● Attract more buyers
● Increase sale price
● Speed up negotiations
For example, a $600,000 business sale may involve $500,000 upfront and $100,000 paid over 12–24 months.
Risk Considerations
Sellers take on repayment risk. Proper legal documentation is essential.
