Glossary · People and paperwork
Supplier agreement
In short
A formal contract outlining the terms and conditions between the business and its suppliers for goods or services. You need to review these to understand costs, delivery schedules, and termination clauses.
What it means in a deal
During due diligence, review all significant supplier agreements. Pay attention to pricing, payment terms, minimum order quantities, and contract duration. Ensure there are no clauses that allow the supplier to terminate the agreement upon a change of ownership, or that would make it difficult for you to renegotiate favorable terms post-acquisition.
Related terms
Common questions about Supplier agreement
- How does life insurance effectively fund a business buy-sell agreement?
- How does the purchase agreement structure affect an SBA partner buyout?
- How does an operating agreement impact an SBA partner buyout loan?
- What happens if the seller terminates the purchase agreement mid-process?
- What are the specific conditions for an acceptable full standby agreement?
- What if a franchise agreement contains provisions for indemnification that concern the SBA?
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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