Glossary · Reading the business
Exclusive Supply Contract
In short
A legal agreement where a business commits to purchasing all or a specified percentage of its supply of a certain good or service from a single supplier.
What it means in a deal
Review any exclusive supply contracts during due diligence. Understand their terms, duration, and if they can be assigned to you as the new owner. A bad contract can limit your flexibility or profitability.
Related terms
Common questions about Exclusive Supply Contract
- How does a lender determine affiliation when a prior owner retains less than 20% equity and a consulting contract?
- What specific conditions trigger affiliation due to contractual relationships or franchise agreements?
- When does a prior contractual relationship create affiliation for 7(a) size determination?
- When does a contractual relationship between two businesses trigger affiliation for size standard calculations?
- Can I use an SBA 7(a) loan to acquire a business that relies heavily on independent contractors instead of employees?
- What if the business I'm acquiring relies heavily on government contracts for revenue?
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.
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