The concept of vendor financing in business

Augusta

VIP Contributor
Vendor financing is a form of raising or increasing a business capital. it is all about the lending of money by a vendor to a customer who is a seller.

A company or organization might want to use vendor financing to buy the vendor's inventory, products or service. The vendor can help with the funding to bring about a business transaction

This arrangement normally takes the form of a deferred loan as given by the vendor, but for the company benefitting from it, it might be about transfer of business shares from the customer to the vendor.

What do you think about this financing?
 
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