John Rubino's Substack

John Rubino's Substack

Is the AI Stock Bubble Partially Fake?

The vendor financing illusion

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John Rubino
Oct 13, 2025
∙ Paid

There’s a business practice sometimes called “vendor financing” in which a company lends money to a customer, who then uses that money to buy the company’s products. The company reports the proceeds as sales and income, usually without a full accounting to its shareholders.

This financing scheme can work — as long as the customer pays back its debts. Bu…

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