Sellers Finance Agreement Template for Switzerland

A Sellers Finance Agreement is a comprehensive legal contract that allows you to sell assets while simultaneously providing financing to the buyer, effectively combining a sales contract with a loan agreement under Swiss law. This arrangement gives you greater control over the transaction terms and can facilitate sales when traditional bank financing is unavailable or unsuitable for your buyer.

When do you need this document?

You need a Sellers Finance Agreement when selling high-value business assets, real estate, or equipment where the buyer requires financing assistance. This document is essential when you want to expand your customer base by offering financing options, particularly in B2B transactions where buyers may face cash flow constraints or difficulty securing bank loans. The agreement is also valuable when you wish to generate ongoing income through interest payments while maintaining some security interest in the sold asset. Additionally, this document becomes necessary when selling to international buyers who may struggle with Swiss banking requirements, or when market conditions make traditional financing less accessible.

Key legal considerations

Your Sellers Finance Agreement must clearly define the dual nature of the transaction, separating sale terms from financing provisions while ensuring both are legally enforceable. Interest rate calculations must comply with Swiss usury laws, and you must include proper default and enforcement mechanisms that align with Swiss debt collection procedures. Security interests and collateral arrangements require precise documentation to ensure enforceability under Swiss law, particularly regarding registration requirements for different asset types. Consumer protection provisions may apply if your buyer qualifies as a consumer under the Swiss Consumer Credit Act, potentially triggering additional disclosure requirements and cooling-off periods. The agreement must also address insurance requirements, asset maintenance obligations, and clear procedures for default scenarios including asset repossession rights.

Legal requirements in Switzerland

Under Swiss law, your Sellers Finance Agreement must comply with the Swiss Code of Obligations, particularly Articles 184-215 for sales contracts and Articles 312-318 for loan agreements. If your buyer is a consumer, the Swiss Consumer Credit Act mandates specific disclosure requirements, including total cost calculations and standardized information forms. The agreement requires written form for enforceability, and certain high-value transactions may need notarization depending on the asset type. You must ensure compliance with the Swiss Debt Enforcement and Bankruptcy Act for enforcement mechanisms, and if your financing arrangement constitutes a regulated financial service, additional licensing requirements under the Financial Services Act may apply. Security interests must be properly registered according to Swiss Civil Code provisions, and any cross-border elements must consider international private law rules for contract enforceability.