Outside of science, the definition of a theory is a thought that may or may not be true. In the science community, a scientific theory is defined as a hypothesis or a group of hypotheses about some phenomena that have been supported through research using the scientific method. A hypothesis is basically an educated guess.
Vendor finance is a form of lending in which a company lends money to be used by the borrower to buy the vendor's products or property.Vendor finance is usually in the form of deferred loans from, or shares subscribed by, the vendor. The vendor often takes shares in the borrowing company.his category of finance is generally used where the vendor's expectation of the value of the business is higher than that of the borrower's bankers, and usually at a higher interest rate than would be offered elsewhere. Vendor finance bridges the valuation gap due to the time value of money.
In some cases there is an interest charge on vendor loan, but in other cases it is simply a deferred payment. Vendor finance is different from an earn-out because it is not contingent on performance. Since there is no contingency, vendor finance is more risky for the buyer than an earn-out.his category of finance is generally used where the vendor's expectation of the value of the business is higher than that of the borrower's bankers, and usually at a higher interest rate than would be offered elsewhere. Vendor finance bridges the valuation gap due to the time value of money.