Document background
The Vendor Loan Agreement is commonly used in business and asset sales where the purchaser requires financing assistance from the seller to complete the transaction. This document type is particularly relevant in situations where traditional bank financing may be unavailable or insufficient, or where the vendor has a strategic interest in facilitating the sale through financing. The agreement, governed by Danish law, forms part of the transaction documentation suite and must be drafted in compliance with Danish financial regulations. A Vendor Loan Agreement typically includes detailed provisions on loan amount, interest calculations, repayment terms, security arrangements, events of default, and enforcement mechanisms. It serves as a crucial document in structuring vendor financing transactions, particularly in business sales, real estate transactions, and asset purchases where deferred payment terms are necessary.
