Vendor Financing


Also found in: Acronyms.

Vendor Financing

The act or practice of a company lending money to a customer so the customer can buy the company's products. Vendor financing allows the company to increase its sales because the customer likely would not have bought from the company otherwise. However, it carries a great deal of credit risk, especially since the customer may or may not have a good credit history and may not pay back the debt. In a situation in which the company is not repaid, it essentially has bought its own products and given them to the customer. In such cases, it writes off the loss as bad debt. See also: Credit sale.
References in periodicals archive ?
With vendor financing present at the point of sale, there's a financing alternative to help customers finance or lease that product.
What exactly is vendor financing in the context of a buying a business?
Our newly formed relationship with Microsoft reflects our ability to provide customized financing solutions for customers of leading global technology companies and further solidifies CIT's position as a leading provider of vendor financing around the world.
Pang also comments on the outlook for the Chinese vendor finance market, stating, "There is an opportunity for significant growth in the vendor financing space in China as leasing penetration continues to increase and fair market value leasing becomes more prevalent throughout the region.
GE Capital is a leading provider of vendor financing to makers of technology products and services as well as many other industries that are driving the U.
This announcement demonstrates our commitment to providing our customers the best global vendor financing experience possible, and we believe that the Lenovo Financial Services Program will allow us to focus on financing programs tailored to meet the specific needs of our customers.
a leading global provider of commercial and consumer finance solutions, today announced a two-year vendor financing agreement with Ingersoll Rand (China) Investment Co.
LFS is a new program that will provide a broad range of vendor financing solutions for Lenovo's business partners and customers who utilize Lenovo's extensive range of technology products and services.
Arrington's first podcast, "The Changing Landscape of Vendor Financing," can download it at "5 Minute Capital" (www.
Arrington's podcast, "The Changing Landscape of Vendor Financing," can download it at "5 Minute Capital" (www.
a leading global provider of commercial and consumer finance solutions, today announced a strategic vendor financing alliance for selected markets with the Manitowoc Crane Group, a division of The Manitowoc Company, Inc.
This perspective on current vendor finance trends is one of several insights Arrington shares in "The Changing Landscape of Vendor Financing," the latest installment of CIT's award-winning "5 Minute Capital" (www.
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