Vendor Financing
Financing offered directly by a supplier or equipment vendor to help a business afford a purchase, repaid to the vendor over time instead of paying the full amount upfront.
Vendor financing is arranged directly with the seller rather than a bank or alternative lender, which can simplify the process since the vendor already knows the asset’s value and may be motivated to help close the sale.
Terms vary widely by vendor and aren’t always as competitive as financing shopped separately, so it’s worth comparing a vendor’s offered terms against other options like equipment financing before assuming it’s the cheapest path.
Related Terms
Related funding options
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