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Vendor Financing

   Also found in: Acronyms 0.01 sec.
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.


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Vendor Financing Defined as the lending of money by a company to one of its customers so the customer can buy products from it, vendor financing allows the company to increase its sales even though it is basically buying its own products.
Different entities has different process to apply for vendor financing However, here is a basic look at what you can expect Different entities has different process to apply for vendor financing.
Mr Brinkerhoff comes to First Leasing Bank from Oracle Corporation in California, where he was part of the senior management team, which drove Oracle's vendor financing programme through its first major growth phase, increasing vendor financing to over $1 billion annually.
 
 
 
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