Vendor Financing
Definition of 'Vendor Financing'The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the company increases its sales even though it is basically buying its own products. |
|
Investopedia explains 'Vendor Financing'This is a sneaky method a company can use to increase sales. It is also very risky, as the companies it lends money to are usually not very financially stable and may never pay back the money. If they don't pay back the debt, the lending company will just write-down the loss as a bad debt. |
Related Definitions
Articles Of Interest
-
Evaluating A Company's Management
Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers! -
Top 8 Ways Companies Cook The Books
Find out more about the fraudulent accounting methods some companies use to fool investors. -
Introduction To Fundamental Analysis
Learn this easy-to-understand technique of analyzing a company's financial statements and reports. -
Advanced Financial Statement Analysis
Learn what it means to do your homework on a company's performance and reporting practices before investing. -
Why Clients Fire Financial Advisors
The reasons most clients fire their advisors are very simple and easy to address. Find out what you should be doing to keep your clients. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Using Social Media To Reach Customer Service Departments
Companies are increasingly using social media and this provides customers with another channel to receive customer service. -
How Often Should You Contact Clients?
Figuring out how often an investment advisor should contact clients is not easy. -
6 Largest Government Contractors
These corporations make a lot of money off of the federal government. -
Mezzanine Financing
Learn about this alternative method of financing companies use to finance expansion.
Free Annual Reports