What Is Vendor Finance and Is It Worth It?
Many people ask us: “what is Vendor Finance?” Vendor finance also referred to as “Seller Finance”, is a term growing in popularity with finance from traditional lenders becoming increasingly more difficult to obtain in recent times. It also allows people with a less than perfect credit score to secure finance to purchase a property, whether residential or commercial. What is Vendor Finance? Basically, the finance is arranged between the seller and the buyer. This is done privately, and generally, the loan is to be paid over a 30-year term, with installments paid directly to the vendor. However, the main focus is for the purchaser to pay out the remainder of the loan as soon as they can arrange more traditional finance. Not everyone who wants to buy a property is in the best position to obtain finance from a bank, and therefore the option of vendor finance enables buyers to get into the property market with finance terms that are flexible. If you enter into a...