What it is:
A vendor note is a short-termto a customer.
How it works/Example:
Why it matters:
Vendor notes are a great way to acquire vendor's perspective, it may not be paid for a right away, but receiving the over time is often better than not receiving it at all (plus the earned interest). When vendors sell high-price items such as cars to auto dealers or medical equipment to hospitals, vendor notes become a crucial advantage.
In some cases, new buyers are especially dependent on vendor notes if they cannot qualify for bank or other financing to acquire .