{"ok":true,"canonical_url":"https://dealroom.so/glossary/supplier-agreement","api_url":"https://dealroom.so/api/public/glossary/supplier-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":"supplier-agreement","term":"Supplier agreement","group":"People and paperwork","definition":"A formal contract outlining the terms and conditions between the business and its suppliers for goods or services. You need to review these to understand costs, delivery schedules, and termination clauses.","what_it_means":"During due diligence, review all significant supplier agreements. Pay attention to pricing, payment terms, minimum order quantities, and contract duration. Ensure there are no clauses that allow the supplier to terminate the agreement upon a change of ownership, or that would make it difficult for you to renegotiate favorable terms post-acquisition.","url":"https://dealroom.so/glossary/supplier-agreement","official_sources":[],"related":[{"slug":"contract-termination","term":"Contract termination","url":"https://dealroom.so/glossary/contract-termination"},{"slug":"procurement-process","term":"Procurement process","url":"https://dealroom.so/glossary/procurement-process"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"change-of-ownership","term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"}],"related_questions":[{"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"},{"question":"What if a franchise agreement contains provisions for indemnification that concern the SBA?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-agreement-contains-provisions-for-indemnification-that-concern-the-sba"}]},"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 — Supplier agreement","url":"https://dealroom.so/glossary/supplier-agreement","source_type":"DealRoom Data"}}