{"ok":true,"canonical_url":"https://www.capbench.com/glossary/supply-agreement","api_url":"https://www.capbench.com/api/public/glossary/supply-agreement","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-17","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"supply-agreement","term":"Supply agreement","group":"People and paperwork","definition":"A contract between a business and its supplier, outlining the terms for the purchase and delivery of goods or services. You need to review these to understand ongoing costs and dependencies.","what_it_means":"During due diligence, you must examine all significant supply agreements. Look for favorable pricing, contract length, exclusivity clauses, and any termination clauses. Key suppliers can be a major risk if agreements are short-term or easily terminable. Ensure critical supply relationships will transfer smoothly post-acquisition and verify pricing.","url":"https://www.capbench.com/glossary/supply-agreement","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://www.capbench.com/glossary/due-diligence"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://www.capbench.com/glossary/lease-agreement"},{"slug":"business-plan","term":"Business plan","url":"https://www.capbench.com/glossary/business-plan"},{"slug":"working-capital","term":"Working capital","url":"https://www.capbench.com/glossary/working-capital"}],"related_questions":[{"question":"How does life insurance effectively fund a business buy-sell agreement?","url":"https://www.capbench.com/sba-7a/questions/how-does-life-insurance-effectively-fund-a-business-buy-sell-agreement"},{"question":"How does the purchase agreement structure affect an SBA partner buyout?","url":"https://www.capbench.com/sba-7a/questions/how-does-the-purchase-agreement-structure-affect-an-sba-partner-buyout"},{"question":"How does an operating agreement impact an SBA partner buyout loan?","url":"https://www.capbench.com/sba-7a/questions/how-does-an-operating-agreement-impact-an-sba-partner-buyout-loan"},{"question":"What happens if the seller terminates the purchase agreement mid-process?","url":"https://www.capbench.com/sba-7a/questions/what-happens-if-the-seller-terminates-the-purchase-agreement-mid-process"},{"question":"What are the specific conditions for an acceptable full standby agreement?","url":"https://www.capbench.com/for-lenders/questions/what-are-the-specific-conditions-for-an-acceptable-full-standby-agreement"},{"question":"What if a franchise agreement contains provisions for indemnification that concern the SBA?","url":"https://www.capbench.com/for-lenders/questions/what-if-a-franchise-agreement-contains-provisions-for-indemnification-that-concern-the-sba"}]},"caveats":["Definitions represent CapBench's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"CapBench Glossary — Supply agreement","url":"https://www.capbench.com/glossary/supply-agreement","source_type":"CapBench Data"}}