Vendor Finance occurs when the vendor (seller) accepts payment for goods in a series of smaller part payments over a period of time.

Bascially the vendor acts as a lender lending the cost of the goods to the purchaser.

In some arrangements, the amount "borrowed" also incurrs an interest rate.

Vendor Finance is an alternative for buyers

who are unable to borrow the funds to purchase goods by traditional lending methods.

The agreement between a vendor and purchaser can vary in form and features, some of the more common methods include;

- instalment contracts

- lease options

- license to occupy