Vendor Finance/Deferred Deposit Arrangements

Vendor Finance/Deferred Deposit Arrangements

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What is Vendor Finance/Deferred Deposit Arrangements?

Vendor Finance usually takes the form of a deferred loan by arrangement. Which postpones any interest payments until an agreed date for the vendor.

A typical vendor finance agreement would see the buyer pay a deposit to the vendor to secure the finance, then pay back the loan amount via a series of regular payments, over an agreed period of time.

The deferred deposit arrangement in simple terms is one that is delayed, either completely or in part, in order to give the person or business making the payment more time to meet their financial obligations.

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