| Vendor
Financing |
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When
a company lends money to one of its customers so that it can buy products
from them. By doing this the company increases their sales, even though
they are basically buying their own products.
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This
is a sneaky way companies can increase sales. It is also very risky
because the companies they lend money to are usually not very financially
stable and may never pay back the money. If they don't pay back the
debt then the lender will just write-down the loss as a "bad
debt". |
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Dictionary
