what is a vendor loan agreement 
a vendor loan agreement is a financing agreement between a vendor and a buyer in which the vendor agrees to provide capital to the buyer for the purchase of the vendor s product the buyer will pay an upfront cost and the remainder of the cost plus interest will be paid over time or at a later date in the future the vendor loan agreement lays out all of the terms of the financing arrangement such as the parties to the agreement the amount financed the time to maturity and the interest rate 