Hardly anyone we know has a good grasp on vendor finance. So we went and got a lawyer to explain. Sam has a chat with Tony Cordato who is an expert in this amazing option for farm succession http://vendorfinancelawyer.com.au/ Basically an aspiring farmer takes out a mortgage with the retiring farmer. Perfect!
Here are questions Sam asked:
Questions Sam asks:
1. Why are you so passionate about vendor finance?
2. What is vendor finance?
3. Do you have a great example of a vendor finance arrangement between a young and retiring farmer?
4. What is the history of vendor finance and why has it gone out of fashion?
5. I’ve heard that advisors (accountants and lawyers) aren’t recommending this to retiring farmers - why not? How do we change that?
6. As an aspiring farmer trying to convince a retiring farmer, what could I do to convince them to think about this?
7. Where can vendor finance go wrong? What are the risks to both parties?
8. Where could I go to find out more?
9. What do you do in this space and how can we get in touch with you?