Vendor Financing means credit of money by a company to one among its customers in order that the customer can buy products from that. By doing this particular, the company boosts its sales just about the most is basically buying its products. A loan from company to another and that is used to buy goods from company providing the particular loan. In using this vendor financing method, the vendor boosts sales, earns attention and may sometimes also acquire a concern in the consumer. This increases the risk profile of a company when it is carried out using a large scale, since many companies don’t have the skill to help conduct credit analysis.