Glossary · People and paperwork
In short
This is a formal contract outlining the terms between a consignor (owner) and a consignee (seller) for goods sold on consignment.
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.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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