Glossary · People and paperwork
Supply agreement
In short
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 in a deal
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.
Related terms
Common questions about Supply 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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