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Vendor financing (also often referred to as sales financing)

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A vendor grants a loan to a buyer so that the buyer can use this money to purchase goods from the vendor (the lending of money by a company to one of its customers so that the buyer can purchase products from it. By doing this, the company increases its sales, even though it is ultimately buying its own products). – In the case of the purchase of shares in a company – sometimes also of shares in a package – an agreement is made whereby the seller provides all or part of the purchase price to the buyer as a loan. In this case, it is also referred to as a vendor loan. – This is also frequently used in connection with seed capital. In this way, the founder brings the shares of the bank or other investors into his company as share capital.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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