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Vendor Finance Agreement for Ireland

Vendor Finance Agreement Template for Ireland

This is a comprehensive financing agreement governed by Irish law that facilitates the purchase of goods or equipment through third-party financing. The agreement establishes the relationship between the finance provider, the vendor selling the goods, and the customer/borrower. It incorporates Irish financial services regulations, consumer protection measures where applicable, and EU directives. The document details the financing terms, repayment obligations, security arrangements, and the interconnection with the underlying sale transaction, while ensuring compliance with Irish banking and finance laws, including Central Bank requirements.

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What is a Vendor Finance Agreement?

The Vendor Finance Agreement is used when a vendor wishes to offer financing options to their customers through a third-party finance provider in Ireland. This arrangement enables customers to purchase goods or equipment while spreading the cost over time, with the finance provider paying the vendor upfront and collecting repayments from the customer. The agreement must comply with Irish financial services regulations, including the Consumer Credit Act 1995 and Central Bank requirements where applicable. It typically includes detailed provisions on credit terms, security arrangements, payment mechanics, and the relationship between the sale and financing aspects. The document is particularly useful for high-value equipment sales where immediate full payment may be prohibitive for customers.

What sections should be included in a Vendor Finance Agreement?

1. Parties: Identifies and defines the finance provider, vendor, and customer/borrower

2. Background: Sets out the context of the agreement - that the vendor is selling goods/services and the finance provider is providing financing

3. Definitions and Interpretation: Defines key terms and sets out interpretation rules for the agreement

4. Facility and Purpose: Details of the financing facility being provided, including amount, purpose, and basic terms

5. Conditions Precedent: Conditions that must be satisfied before the financing becomes available

6. Drawdown and Payment Mechanics: Process for accessing the financing and making payments to the vendor

7. Interest and Fees: Details of interest rates, calculation methods, and any additional fees

8. Repayment Terms: Schedule and methods of repayment, including any early repayment provisions

9. Representations and Warranties: Statements of fact and assurances from the borrower and vendor

10. Covenants: Ongoing obligations of the borrower and vendor throughout the agreement term

11. Events of Default: Circumstances constituting default and consequences

12. Enforcement Rights: Rights and remedies of the finance provider upon default

13. Termination: Circumstances and process for ending the agreement

14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

What sections are optional to include in a Vendor Finance Agreement?

1. Security Arrangements: Required when the financing is secured against specific assets or collateral

2. Personal/Corporate Guarantee: Used when additional security through guarantees is required

3. Insurance Requirements: Detailed insurance obligations when specific insurance coverage is required for financed assets

4. Regulatory Compliance: Specific compliance obligations when dealing with regulated sectors or activities

5. Tax Provisions: Detailed tax clauses when specific tax treatments or obligations need to be addressed

6. Assignment and Syndication: Required when the finance provider wants rights to assign or syndicate the financing

7. Connected Agreements: Used when there are related agreements that need to be cross-referenced or integrated

8. Step-In Rights: Required when the finance provider needs rights to step into the underlying sale contract

What schedules should be included in a Vendor Finance Agreement?

1. Schedule 1 - Facility Details: Detailed terms of the facility including amounts, interest rates, fees

2. Schedule 2 - Repayment Schedule: Detailed payment schedule including dates and amounts

3. Schedule 3 - Conditions Precedent: List of all required documents and conditions to be satisfied

4. Schedule 4 - Form of Drawdown Request: Template for requesting drawdown of funds

5. Schedule 5 - Security Documents: Forms of any security documents required

6. Schedule 6 - Underlying Sale Contract: Details or copy of the related sale agreement

7. Appendix A - Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

8. Appendix B - Required Insurance: Specific insurance requirements and minimum coverage levels

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Ireland

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions



















































Clauses








































Relevant Industries

Manufacturing

Technology and Software

Industrial Equipment

Construction

Agricultural Equipment

Medical Equipment

Renewable Energy

Transportation and Logistics

Telecommunications

Office Equipment

Heavy Machinery

Automotive

Relevant Teams

Legal

Finance

Commercial

Risk

Compliance

Sales

Treasury

Credit

Operations

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Commercial Director

Legal Counsel

Contracts Manager

Credit Manager

Risk Manager

Sales Director

Business Development Manager

Treasury Manager

Compliance Officer

Financial Controller

Operations Director

Account Manager

Partner (Law Firm)

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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