How Vendor Financing Can Help With Purchasing Property

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vendor financing

Ever wanted to purchase a property but lacked essential financing?

An individual that has difficulties acquiring credit can purchase their dream home or investment property with a little known method - vendor financing.

vendor financing

What Is Vendor Financing?

Vendor Financing is a financial practice where you extend payments to buy a property from a vendor if you are short on funds. In other words, a company sells properties and is willing to accept stage payments so that you don't need to have the full capital.

The seller will normally accept a 50% down payment with affordable repayments as trade credit over 1 to 3 years. You will not get legal ownership until all payments are complete and this involves signing a legal contract with the seller.

Property ownership documents are held in escrow by a lawyer ensuring the property cannot be sold to another party. Should the individual cease to make payments (the borrower defaults), then the property ownership remains in the seller’s name.

Most of the time there will be an interest charge but in this is to be negotiated between the parties.

how vendor financing works

How Vendor Financing Works

After you (the borrowing persons) sign a contract with the vendor (the seller) and enter into a financial agreement, the borrower is legally required to make the initial deposit to receive business financing.

benefits of vendor financing for businesses

Vendor Financing Benefits

Let's look at some of the benefits of vendor financing:

  • Increases your chances of selling your property

    If you can increase your customer's funds you can increase the chances of selling your property with vendor financing.

  • Easier to get a bank loan for purchasing a condominium unit(s)

    This may be feasible for a foreigner who has been working in Thailand (holding a valid work permit) for more than 3 years. But in general, it is not possible for a foreigner to get a bank loan for a property purchase in Thailand (either a condominium unit or land and/or villa). UOB Bank do offer loans for completed foreign freehold condominium units with a minimum lending amount of 2 million baht. Please contact us for details about that at: [email protected].

  • Enables early purchase

    Buyers may not have 100% of the purchase price on their current visit.

  • Flexibility to pay early with no penalties and reduce interest charges payable

    Less headaches for the vendors as they do not have to not worry about unforeseen penalties or higher interest rate.

  • Security for both parties

    Lawyer safeguards property deeds, ownership not transferred until payments are completed.

  • Buyer default

    Seller retains down payment and title if the borrower defaults.

  • Buyer takes possession of the property upon down payment

    Ability to move in or start renting out the properties early. The borrower receives the products or services at a sales price.

conditions of vendor financing for businesses to get money

Vendor Financing Conditions

  • Seller and Buyer negotiate and agree on the initial down payment, interest rate, payment dates and period of term.
  • Access to property to be agreed between lender and borrower.
  • Both parties must use a lawyer to provide a sales and purchase agreement.
  • Check to be made to confirm the title deed is in the name of the seller and there are no encumbrances over the property.

siam real estate vendor financing

Attention Owners:

Having problems selling your property or taking longer than expected?

Why not join our Vendor Financing program and attract a lot more buyers to your property today!

If you wish to participate in this program please send us an email to [email protected] and advise the following which property you would like to be offered in our Vendor Financed Property collection.

See other vendor financed properties here:

vendor financing in thailand

Thai Property Market Overview:

Whereas in previous years when buyers would pay cash in full for the property they were buying, in today’s climate property sellers are being more flexible to achieve a sale.

In previous years people all paid cash with recent troubles in the world markets people are not always able to pay up front in cash.

As properties were taking longer to sell, owners/sellers have become more flexible.

Siam Real Estate have offered their owners and buyers a change to join the Vendor Financing program.

One of the troubles the Thai property market faces is that the majority of foreign buyers do not live here all year round. When a buyer is in Thailand and they make a decision to buy they might not have all cash available for reasons like waiting on a chain Real Estate transaction in their owner country, business deal to complete, fund to come to fruition etc.

Thai banks don't offer mortgages or bank financing to foreigners so payments for properties must be in cash.

If you want to pay over a period of time (for example a few years) you can buy off-plan new developments whereas the payments are spread over construction which is usually 2-3 years or they pay a deposit then the balance on completion.

Now we are able to offer Vendor Finance to owners and buyers which we have found to be very popular and more and more owners are signing up to have their properties featured.

Vendor Financing Pros & Cons

Let's briefly discuss the pros and cons of vendor financing.


  • You Can Skip Financial Institutions And Bank Financing: If you have bad debt or your credit is not good enough to match with a lender to build business credit, getting financing might prove difficult. Vendor financing allows you to deal directly with the company and grow your business fast at a lower cost.
  • More Sales For The Vendor: More sales means more business and more cash flow. In many cases this can benefit vendors as they get more clients and more revenue coming in.


  • Limits On Sales: You can only work with what you've got and that means vendor financing will only work with the company you have an agreement with. Vendors have products that might be limited for your kind of service or type of customer.
  • Not Popular: Unclear terms and complicated lending conditions can result in legal constraints and fallbacks.
  • More Expenses: You will most likely have to pay 10% to 20% more than the investor.
  • Risk: Inventory used as collateral to back line of credit.

Click Here to see a list of properties offering Vendor Financing in Phuket

If you wish to participate in this scheme please identify the reference of the properties and send us an email to [email protected] and advise the following:

  • When you are visiting Phuket
  • When you wish to buy
  • Telephone contacts
  • Finance available

Coming from outside Thailand? We'll pay part of your airfare upon purchase. *terms apply


All data and information set forth on this website regarding real property, for sale, purchase, rental and/or financing, are from reliable sources. However, no warranties are made as to the accuracy of any descriptions and/or other details and such information is subject to errors, omissions, changes of price, tenancies, commissions, prior sales, leases or financing, or withdrawal without notice.

Areas in square meters are only estimates and may be verified by consulting professional services. Customers should seek advice and proper legal counsel with respect to all closing costs, timing considerations, financing options, default provisions, zoning implications, renovation considerations and appropriate transfer taxes.

All rights as to photographs and graphics are reserved to Siam Real Estate Phuket Co. Ltd/Siam Real Estate Bangkok Co. Ltd.  Siam Real Estate Phuket Co. Ltd/Siam Real Estate Bangkok Co. Ltd represents and has a fiduciary duty to those sellers with respect to Siam Real Estate Phuket Co. Ltd/Siam Real Estate Bangkok Co. Ltd exclusives. Siam Real Estate Phuket Co. Ltd/Siam Real Estate Bangkok Co. Ltd may act as a dual agent if another agent of Siam Real Estate Phuket Co. Ltd/Siam Real Estate Bangkok Co. Ltd represents the buyer or tenant. Siam Real Estate Phuket Co. Ltd/Siam Real Estate Bangkok Co. Ltd represents the buyer or tenant when showing the exclusive listings of other real estate brokerage firms.