Vendor Financing

Vendor Financing,

What Does Vendor Financing Mean?

Payable accounts is a financial term that describes seller's cash loans that are sold to customers who use the capital to buy the seller's product or service offerings.

  • Seller financing is a term used to describe a seller's debt to a business person who uses that capital to buy the same product or service from the seller.
  • Seller finance contracts usually have higher interest rates than traditional lenders.
  • Vendor financing helps strengthen the relationship between vendors and business owners.
  • Vendors adopting this practice may include wage brokers, security companies and other service providers.

Literal Meanings of Vendor Financing


Meanings of Vendor:
  1. A person or company that has some sales, especially a street vendor.

Sentences of Vendor
  1. Italian ice cream vendor


Meanings of Financing:
  1. Finance (one person or company)

  2. Especially large sums of money managed by the government or large companies.

Sentences of Financing
  1. Healthcare is almost entirely paid by taxpayers.

  2. Company Financial Management

Synonyms of Financing

invest in, capitalize, subsidize, investment, back, business, pecuniary matters, financial affairs, banking, fund, provide capital for, money matters, economics, accounting, provide security for, fiscal matters, commerce, pay for, money management, endow