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so what is the difference between a preferred supplier agreement and a contract to supply well many businesses have these and some have both but what are they and what does it mean to you the business buyer what is typical with many businesses in new zealand is that suppliers especially of services like IT cleaning etc will have a preferred supplier agreement in place now this is not the same as a contract to supply services the majority of businesses use preferred supplier agreements now in the case of a preferred supplier agreement often called a psa it is important to understand what this actually means especially when a business is being sold and the purchaser is looking to buy that business for continuity of service post sale now let's look at the example of say a carpet cleaning business where they have a psa or some casual agreement whereby each party gets on well so they just get on with it and do business now this casual arrangement is something...
