Providing Vendor finance is often a way to get a higher price for the business. However, there are many risks. For example, if the new owner is not an effective operator of the business and loses money, the chances are he will not be able to pay.
A further example of risk associated with Vendor finance – the new owner may decide, after occupying the business for a period of time, that he / she was mislead about the value of the business and paid too much. it. He / she may then perhaps refuse to pay the balance of the purchase price.
A Vendor who provides finance to a Purchaser is always taking a risk – even if he has good security.
235 St Vincent Street,
Port Adelaide
South Australia 5015
(08) 8447 4466
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86 Franklin Street,
Adelaide
South Australia 5000
(08) 8212 6875
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107 Walkerville Tce,
Walkerville
South Australia 5081
(08) 8342 0300
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8 Union Street,
Gawler
South Australia 5118
(08) 8522 7160
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