Document background
The Vendor Finance Agreement is utilized when a vendor wishes to facilitate the sale of their assets or equipment by providing direct financing to the purchaser, rather than requiring the purchaser to obtain third-party financing. This arrangement is particularly common in commercial and industrial contexts in New Zealand, where traditional bank financing might not be the optimal solution. The document must comply with New Zealand's financial and commercial legislation, including the Credit Contracts and Consumer Finance Act 2003 and the Personal Property Securities Act 1999. This agreement type is especially useful for large equipment purchases, industrial machinery, or significant commercial assets where the vendor has the capacity to offer financing terms. The agreement covers crucial elements such as the financing terms, security arrangements, payment schedules, default provisions, and the parties' ongoing obligations, all while ensuring compliance with New Zealand's legal requirements.
