{"ok":true,"canonical_url":"https://dealroom.so/glossary/consignment-agreement","api_url":"https://dealroom.so/api/public/glossary/consignment-agreement","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"consignment-agreement","term":"Consignment Agreement","group":"People and paperwork","definition":"This is a formal contract outlining the terms between a consignor (owner) and a consignee (seller) for goods sold on consignment.","what_it_means":"If the business you're buying deals with consignment, carefully review all consignment agreements during due diligence. Understand payment terms, return policies, and ownership clauses. These agreements can affect the business's cash flow, inventory risk, and potential liabilities, so ensure they are favorable or manageable.","url":"https://dealroom.so/glossary/consignment-agreement","official_sources":[],"related":[{"slug":"consignment","term":"Consignment","url":"https://dealroom.so/glossary/consignment"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What if a business seeking a 7(a) loan derives a significant portion of its revenue from selling products on consignment?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-seeking-a-7-a-loan-derives-a-significant-portion-of-its-revenue-from-se"},{"question":"How does life insurance effectively fund a business buy-sell agreement?","url":"https://dealroom.so/sba-7a/questions/how-does-life-insurance-effectively-fund-a-business-buy-sell-agreement"},{"question":"How does the purchase agreement structure affect an SBA partner buyout?","url":"https://dealroom.so/sba-7a/questions/how-does-the-purchase-agreement-structure-affect-an-sba-partner-buyout"},{"question":"How does an operating agreement impact an SBA partner buyout loan?","url":"https://dealroom.so/sba-7a/questions/how-does-an-operating-agreement-impact-an-sba-partner-buyout-loan"},{"question":"What happens if the seller terminates the purchase agreement mid-process?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-seller-terminates-the-purchase-agreement-mid-process"},{"question":"What are the specific conditions for an acceptable full standby agreement?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-conditions-for-an-acceptable-full-standby-agreement"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Consignment Agreement","url":"https://dealroom.so/glossary/consignment-agreement","source_type":"DealRoom Data"}}