Document background
The Vendor Finance Agreement is a specialized financing instrument used when a vendor offers direct financing to customers for the purchase of equipment, assets, or services. This document type is particularly relevant in the Netherlands, where it must comply with specific financial regulations including the Wet op het financieel toezicht (Wft) and the Dutch Civil Code. The agreement typically includes detailed provisions for the credit facility, security arrangements, payment terms, and ongoing obligations of both parties. It's commonly used in commercial and industrial sectors where significant capital expenditure is required, providing customers with an alternative to traditional bank financing while allowing vendors to facilitate sales through direct financing solutions. The document incorporates Dutch-specific legal requirements for commercial financing, including mandatory disclosure requirements, financial supervision regulations, and security interest provisions.
