Vendor loan

installments granted by the seller of the business

In more detail

An installment plan from the seller of the business: part of the price is received not in money but as the buyer's promise to pay later.

It was invented for deals where the bank is not prepared to give everything. It also tests the seller: someone confident in their business will agree to wait.

Covered in the primer of chapter 6.

Where it appears in the course

In the academy “Vendor loan” is not a definition but an operation: you post it yourself and watch what it does to the balance sheet.

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