Document background
The Seller's Finance Agreement is utilized when a seller wishes to provide direct financing to a buyer for the purchase of goods or assets in Germany. This arrangement is particularly common in situations where traditional bank financing may not be optimal or available, or where the seller wishes to facilitate sales through internal financing options. The document must comply with German banking regulations, civil law requirements, and consumer protection provisions where applicable. It typically includes detailed terms covering the financing amount, interest calculations, repayment schedules, security arrangements, and default remedies. The agreement is structured to protect both parties' interests while ensuring enforceability under German law, with particular attention to documentation requirements and regulatory compliance specific to the German jurisdiction.
