What Is Vendor Take-back Financing When Buying A Business?

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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.

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