What Is Vendor Take-back Financing When Buying A Business?
HomeWhat Is Vendor Take-back Financing When Buying A Business?
FAQs
Frequently Asked Questions
Vendor Take-back Financing, Also Called VTB Financing, Occurs When The Seller Finances Part Of The Purchase Price And The Buyer Repays That Amount Under Agreed Terms. The Purchase Agreement Or A Separate Financing Agreement Should Clearly Document The Principal, Interest, Repayment Schedule, Security, Default Provisions And Any Subordination Requirements.