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 ?
At Nortel, vendor financing represented almost 7 percent of revenue last year.
With vendor financing present at the point of sale, there's a financing alternative to help customers finance or lease that product.
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.
The expansion within Europe of LFS further demonstrates our position as a leading provider of vendor financing solutions and reinforces our commitment to the market.
This announcement demonstrates our commitment to providing our customers the best 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.
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.
NYSE: CIT), a leading global commercial finance company, today announced a vendor financing relationship between CIT Vendor Finance, Canada and Metafore, a leading provider of IT solutions in Canada.
In addition, the customer can access CIT and Tokyo Leasing for global vendor financing and structuring capabilities as they look to grow sales in Asia and around the world.
NYSE:CIT), a leading global commercial finance company, today announced the expansion of its global vendor financing relationship with Microsoft Corp.
Siming Li, Managing Director, CIT Vendor Finance, Asia Pacific, said, "The opening of this office represents our commitment to providing efficient and high quality service to our local clients as we seek to become the premier vendor financing partner of companies in China.
NYSE: CIT), a leading global provider of commercial and consumer finance solutions, today announced a global vendor financing agreement with EFI (Nasdaq: EFII), the world leader in color digital print servers, superwide format printers and inks, and print management solutions.
CIT, a Fortune 500 company and a member of the S&P 500 Index, holds leading positions in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending.
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