Vendor Finance: How It Can Bridge the Gap卖方融资: 如何弥合资金缺口

Vendor Finance: How It Can Bridge the Gap卖方融资: 如何弥合资金缺口

Vendor finance (also called seller financing) is an arrangement where the seller of a business provides a portion of the purchase price as a loan to the buyer. It is not a mainstream product: most banks do not offer it: but it can be a practical solution in situations where conventional lending falls short.

How vendor finance typically works:

- The buyer pays a deposit (often 10-30%), a bank or lender provides first-ranking finance secured against the business's tangible assets, and the vendor provides a second-ranking loan for the remaining balance.

- The vendor loan is usually subordinated to the bank's security. This means the bank is repaid first if the business is sold or wound up.

- The vendor loan may be interest-only for an initial period, followed by principal-and-interest payments. Terms are typically 2-5 years, though this varies.

- Interest rates on vendor finance are sometimes above bank rates, reflecting the higher risk the vendor takes by not being fully cashed out at settlement.

Situations where vendor finance can help:

- Valuation gap. If the bank values the business lower than the agreed purchase price, vendor finance can bridge the difference without the buyer needing to find additional cash.

- High goodwill component. As lenders are generally cautious about lending against goodwill, vendor finance can cover the goodwill portion that a bank will not fund.

- Limited buyer equity. A buyer with strong industry experience but limited cash reserves may use vendor finance to reduce the required cash deposit to a manageable level.

- Transition period. Some vendors are willing to provide finance as part of a phased handover, where the buyer makes payments to the vendor over time while the vendor remains involved in the business on a part-time basis.

What lenders think of vendor finance:

- Most banks accept vendor finance in principle, provided the vendor loan is properly documented, registered on the Personal Property Securities Register (PPSR), and clearly subordinated to the bank's interest.

- Some lenders impose conditions: the vendor loan may need to be interest-only, or the bank may require that personal guarantees from the buyer cover both the bank debt and the vendor loan.

- A few lenders do not accept vendor finance at all. Engaging a broker like A Plus Finance can help you identify which lenders on our panel are open to vendor-finance structures.

Risks for both parties:

- For the vendor: if the buyer defaults, the vendor may need to enforce their security or repossess the business: a messy process. The vendor also receives their money over time rather than upfront.

- For the buyer: the combined debt from bank and vendor finance can be higher than a single bank loan, increasing monthly obligations. Defaulting risks losing both the business and the relationship with the vendor.

Documentation essentials:

- A deed of priority executed between the bank, vendor, and buyer, confirming the order of repayment in a default scenario.

- Registration of the vendor's security interest on the PPSR.

A Plus Finance can advise on structuring a vendor finance arrangement and help find lenders on our panel who are comfortable with this approach.

卖方融资（也称为卖家融资）是一种由企业卖方将部分购买价格作为贷款提供给买方的安排。这不是一种主流产品: 大多数银行不提供: 但在传统贷款无法满足需求的情况下，它可以是一个实用的解决方案。

卖方融资的典型运作方式：

- 买方支付首付（通常为10-30%），银行或贷款机构提供以企业有形资产为抵押的第一顺位融资，卖方为剩余余额提供第二顺位贷款。

- 卖方贷款通常次于银行的担保。这意味着如果企业被出售或清算，银行优先获得偿还。

- 卖方贷款可能在初期只付利息，之后转为本息还款。期限通常为2-5年，但各案不同。

- 卖方融资的利率有时高于银行利率，反映了卖方在交割时未完全套现所承担的更高风险。

卖方融资可以发挥作用的情况：

- 估值差距。如果银行对企业的估值低于约定购买价格，卖方融资可以弥合差额，而无需买方寻找额外现金。

- 高商誉部分。由于贷款机构通常对商誉贷款持谨慎态度，卖方融资可以覆盖银行不愿承贷的商誉部分。

- 买方资金有限。行业经验丰富但现金储备有限的买方可以利用卖方融资将所需首付降至可管理的水平。

- 过渡期。一些卖方愿意作为分阶段交接的一部分提供融资，买方在一段时间内向卖方付款，同时卖方以兼职形式继续参与企业运营。

贷款机构如何看待卖方融资：

- 大多数银行原则上接受卖方融资，前提是卖方贷款有适当的文件记录、在PPSR（个人财产担保登记册）上注册，并明确次于银行的权益。

- 一些贷款机构会施加条件：卖方贷款可能必须是只付利息，或者银行要求买方的个人担保同时覆盖银行债务和卖方贷款。

- 少数贷款机构完全不接受卖方融资。通过A Plus Finance这样的经纪公司，可以帮助您找到我们合作机构中哪些接受卖方融资结构。

双方的风险：

- 对卖方而言：如果买方违约，卖方可能需要执行担保或收回企业: 这是一个复杂的过程。卖方也是逐步收到款项，而不是一次性全部拿到。

- 对买方而言：银行和卖方融资的合并债务可能高于单一银行贷款，增加了月度还款义务。违约可能导致失去企业和与卖方的关系。

必要文件：

- 银行、卖方和买方之间签署的优先权契约，确认违约情况下的偿还顺序。

- 在PPSR上登记卖方的担保权益。

A Plus Finance可以就构建卖方融资安排提供建议，并帮助您从我们合作机构中找到接受此方法的贷款机构。

Points to keep in mind需要留意的事项

• Read the details alongside your own figures, timing, and documents.请结合自己的数字、时间安排和材料阅读这些内容。
• Use this article to prepare questions. Current lender criteria and personal circumstances still need to be checked.把文章当作准备问题的起点，具体贷款机构政策和个人情况仍需进一步确认。

Questions people often ask常见问题