What is vendor finance?

Vendor finance assists with a business’ asset growth by avoiding the cash flow challenges posed by paying for an asset in one lump sum. Instead, asset finance companies lend money to a potential customer to purchase one of the vendor’s products, thus allowing them to pay for the asset in regular instalments.

A high proportion of the product’s value will typically be forwarded through vendor finance – a highly popular equipment financing tool – leaving you to pay the deposit only at first, before spreading the remainder of its price over a specified period.

What are the benefits of vendor finance?

  • Vendor finance protects your business’ cash flow when purchasing an asset.
  • The fixed and regular repayments through this equipment financing method assist with your cash flow management and budgeting.
  • The working capital released by vendor finance can be reinvested into expansion, perhaps through mergers and acquisitions or any MBO and MBI activity.
  • Following the completion of the repayment period, the purchaser is often able to upgrade the product, if required.

Is vendor finance right for my business?

That’s a question which we cannot answer until we’ve either had a meeting or spoken with you to gain further information.

Rest assured our finance providers have the right extensive experience in sourcing the right asset finance solutions to meet individual businesses’ funding requirements when purchasing new equipment.