Glossary · People and paperwork
Licensor
In short
An entity that grants permission to another party (the licensee) to use its intellectual property, such as trademarks, patents, or copyrighted material, under specific terms and conditions.
What it means in a deal
If the business you're buying relies on licensed intellectual property, the licensor is a critical third party. You'll need to ensure the existing license is transferable or a new agreement can be secured, as it's vital. The lender will review these agreements carefully.
Related terms
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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