Vendor Finance Calculator
Calculate the expected monthly repayment amount on a Seller Finance agreement with Turms.
Calculate Seller Finance Repayments
Calculate your estimated repayments
Buying or selling a business using vendor finance
If you are buying a business, or selling a business, in Australia consider vendor finance (sometimes referred to as seller finance).
Turms Vendor Finance opens up more opportunities and helps buyers secure their dream business faster. For sellers, Turms helps get to settlement quicker and gives you the best chance of finding the right buyers.
Using our Vendor Finance Calculator
As a business buyer, you can quickly get an idea of the interest payable and the estimated repayments each month by using the calculator above.
Simply enter the expected purchase price, the deposit amount and the repayment duration, which must be between 6 - 36 months.
The calculator will display the total finance amount, the amount you can expect to pay each month as well as the total interest you will pay over the duration of the loan.
Frequently Asked Questions
What is vendor finance?
Vendor financing, which is also called seller financing or vendor take-back, is where the seller of the business agrees to take part of the sale price through a series of payments with interest. The seller is essentially extending debt to the buyer so that they can complete the purchase.
How much can I vendor finance?
As a purchaser you should be assessing how much cash flow the business generates and how much of that cash flow you can commit towards loan repayments. Our easy calculator in our purchaser portal makes this easy to figure out
How much will my repayments be with vendor finance?
This will be set between yourself, the vendor and your broker/s. Turms will help tailor this amount to suit both the purchaser and vendor
Will I need to do a credit check to get vendor finance approval?
Yes, we run soft credit checks as part of our standard processes.
Can I pay out the loan early?
Absolutely! You may also be eligible for a discount on the remaining amount!
I want to buy a business that’s not listed on turms.com.au, can I do that?
Seen a business you like listed elsewhere? Head to the purchaser tab and send us the link and we’ll reach out to the broker/vendor.
How does vendor finance work?
Vendor finance used to be difficult but Turms makes it really easy! Once the purchaser, vendor and their broker/s have agreed to the vendor financing amount and loan term, the Turms platform gets to work and makes it all official
What’s the interest rate with vendor finance?
As the vendor is essentially extending an unsecured loan, the rates vary between 13-17% p.a.
Vendor financing will be a little more expensive than a traditional bank loan but on par if not cheaper than most other funding sources. We have a few ways of getting your interest rate as low as possible and will go through them in the purchaser portal.
Do I need to provide security for the vendor fInance?
Our standard agreement template allows for a General Security Agreement over the business whilst the finance remains in place. Purchasers also provide personal /director’s guarantees.
If you do have further security to offer (e.g. residential property) we can usually use this to lower your interest rate over the finance term.
How long are vendor finance terms?
This will be set between yourself, the vendor and your broker/s. Turms will help tailor this but finance terms usually sit between 6 months and 24 months
I have bad credit, can I still apply for vendor finance?
Absolutely! While traditional lenders such as banks may knock you back if you have a bad credit history (or no credit history) we understand that there’s often more to the story. As long as you meet our other eligibility criteria we can still hopefully secure vendor approval for you.
