Corporate Finance
Dealer financing, also known as vendor financing, is a type of financing option where the retailer or dealer assists customers in securing a loan through partner financial institutions. This model enables customers to obtain on-site financing at the point of purchase.
In the dealer financing model, the retailer acts as an intermediary between the borrower and the financial institutions, often having credit tie-ups with banks or credit unions. This setup allows customers to access quick and convenient financing options directly from the dealership or vendor location.
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