vendor financing
Definition
A loan from one company to another which is used to buy goods from the company providing the loan. In this way, the vendor increases sales, earns interest, and may sometimes also acquire an interest in the customer. This increases the risk profile of a company if it is carried out on a large scale, since many companies do not have the skill to conduct credit analysis. Large, creditworthy buyers are unlikely to make use of this arrangement, since they will be able to borrow money at lower rates from other sources.
 Cite this definition
Related Terms
vendor
Related Research Articles from the InvestorGuide.com University
Credit Reports
Explains the concept of a credit report, and describes information found on a credit report, including identifying information, credit information, public record information, and inquiries.
Credit Mistakes
Your credit report may have errors on it, and this can hurt your ability to borrow. That's why it's important to check your credit reports periodically and get errors resolved. Here we describe the best procedure to follow to make sure you're protected so that errors don't hurt you. We also list the contact information of the three large credit reporting agencies: Experian, Equifax, and Trans Union.
Introduction to Credit
Stresses the importance of credit and explains some basic concepts. Also gives suggestions and a five step process to help take control of your credit.
Featured Sponsor
|
|
