Glossary · People and paperwork
Assignment agreement
In short
This is a legal document that transfers rights, property, or obligations from one party (the assignor) to another (the assignee). It's common in business sales for contracts and leases.
What it means in a deal
You'll use these to transfer key contracts, Lease agreement, and intellectual property from the seller to your new entity. Ensure all critical agreements necessary for the business to operate post-closing are properly assigned and that third-party consent, if required, is obtained, especially for significant customer or vendor contracts.
Related terms
Common questions about Assignment agreement
- How does a collateral assignment of life insurance protect a lender?
- What is the difference between collateral assignment and naming a lender beneficiary?
- When does the SBA typically mandate collateral assignment of life insurance for a business loan?
- What are the specific requirements for life insurance collateral assignment when multiple key principals exist?
- How does a lender ensure proper collateral assignment of life insurance on multiple key principals?
- When is life insurance collateral assignment required for key principals in an acquisition, and for whom?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.