Vendor Finance Agreement Template for Indonesia

The Vendor Finance Agreement is a crucial document used in Indonesian commercial transactions where a vendor or financial institution provides financing for the purchase of goods, equipment, or assets. This agreement type is particularly relevant in situations where customers require payment flexibility or structured financing for significant purchases. The document must comply with Indonesian financial services regulations, including OJK requirements, and typically includes detailed terms on credit facility, security arrangements, payment schedules, and default provisions. The agreement becomes especially important in large-scale commercial transactions and must be structured to account for Indonesian secured transaction laws, currency regulations, and financial services requirements. It serves as both a financing and security document, often incorporating fiduciary security arrangements as permitted under Indonesian law.

1. Parties: Identification of the vendor/finance provider and the customer, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the vendor's business, customer's requirements, and purpose of the financing arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial terms, technical terms, and Indonesian legal concepts

4. Facility Terms: Core financial terms including facility amount, purpose, availability period, and drawdown conditions

5. Interest and Fees: Specification of interest rates, calculation methods, fees, and other charges

6. Repayment Terms: Payment schedule, payment methods, prepayment provisions, and consequences of late payment

7. Security Arrangements: Details of any security or collateral provided, including fiduciary security arrangements

8. Representations and Warranties: Standard and transaction-specific representations and warranties from both parties

9. Covenants: Positive and negative obligations of the customer during the facility period

10. Events of Default: Circumstances constituting default and consequences thereof

11. Termination: Grounds for termination and the process for ending the agreement

12. Governing Law and Dispute Resolution: Choice of Indonesian law and agreed dispute resolution mechanisms