What Is a Financial Information Non-Disclosure Agreement?
A financial information non-disclosure agreement (NDA) is a legal contract that protects sensitive financial details when you share them with someone else, like an investor, advisor, contractor, or business partner.
It requires the other party to keep that information private. It also limits how they can use it and sets how long it needs to stay confidential. Financial information can include:
- Income and revenue details
- Financial statements and reports
- Projections and forecasts
- Pricing, budgets, or cost data
Sign the NDA before sharing any financial information. If you share details first, you may lose the ability to protect them.
When Should You Use a Financial Information NDA?
Use a financial information NDA when you need to control how sensitive financial details like revenue, forecasts, or budgets are handled by someone outside your business. You’ll typically need one when you’re:
- Walking a potential investor through projections or financial performance
- Giving a partner or advisor access to revenue data or internal reports
- Sharing budgets or cost data with a contractor or consultant
- Sending financial statements to a third party for review
For example, if you’re pitching your business to an investor and need to share revenue and forecasts, an NDA helps keep that information confidential. In some cases, the other party may also need to share their financial data during discussions. If both sides plan to exchange financial data, a mutual NDA may be a better fit for that situation.
A financial NDA protects confidentiality only. It doesn’t give you ownership of financial data, stop someone from using similar strategies, or cover information that’s already public or independently obtained. It’s also not designed for complex transactions like mergers or full investment agreements.
What to Include in a Financial Information NDA
A financial information NDA should set clear boundaries around who can access your financial data and how long they’re allowed to use it. Make sure you cover:
- What financial information is protected. State whether the NDA covers all financial data or specific items like statements, forecasts, pricing, or tax records
- Who is sharing the information. Identify the person or business disclosing the financial details
- Who can access the information. Name the person or business responsible for keeping it confidential
- How long the agreement lasts. Set the length of the NDA, such as a fixed number of years
- How long the information stays confidential. Clarify whether confidentiality continues after the agreement ends
- Which state’s law applies. Specify the governing law for the agreement
- When the agreement starts. Confirm the effective date and when information can be shared
Once financial information is shared, you can’t take it back, so it’s important to have clear terms in place from the start. Legal Templates helps you set those details so you stay in control of how your financial data is handled, used, and shared.
Sample NDA for Financial Information
Start with a sample NDA for financial information to see how it works. Then customize your agreement and download it in Word and PDF.
