Vendor finance
Vendor finance is when the seller leaves part of the purchase price in the deal as a loan to the buyer — bridging a deposit or servicing gap the bank won't cover.
Seen in creative acquisition strategies, vendor finance requires careful legal documentation: security ranking behind the bank, interest terms, and repayment triggers. Banks must be informed — hiding it breaches your lending obligations. Powerful in the right deal, and a red flag when used to overpay for a property no one else would fund.
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