Vendor Finance
Make it easy for customers to buy from you by offering a finance solution
Vendor Finance
Make it easy for customers to buy from you by offering a finance solution
Empowering Your Customers with Vendor Finance
Vendor finance fuels business growth by boosting product sales, expediting the sales process, and enhancing cash flow.
What is Vendor Finance?
Vendor finance, also known as supplier finance, is a powerful tool that businesses can use to boost sales.
Imagine your customer is interested in purchasing your products or services, but they face cost or cash flow concerns. These concerns might otherwise hinder the sale. Vendor finance steps in. Working alongside a lender you offer financing options directly to your customer. Unlike traditional bank loans, vendor financing is tailored to your customer’s needs. It provides more flexible terms, making the purchase affordable and accessible.
How it works
1. Select and Apply
Your customer chooses their equipment and completes application form.
2. Quote
Lender provides quote and, if accepted, all documentation is completed.
3. Payout
Lender pays the supplier invoice upfront and your customer receives their equipment.
4. Spread Payments
Your customer spreads the cost of the equipment over an agreed term.
5. Own or Upgrade
When the term is complete, the customer can hold onto the equipment or upgrade.
How can Vendor Finance help my business?
Vendor finance can benefit your business in a range of different ways.
Vendor finance provides an accessible pathway for your customers to acquire your products. Instead of facing a daunting upfront cost, they can opt for manageable installments, making your offerings more appealing and inclusive. This also boosts your cash flow because as soon as the finance agreement is signed, you receive payment. No waiting around—your cash flow benefits immediately, allowing you to reinvest or expand. In turn this can lead to increased sales due to financing options also positively impact overall profitability.Â
Vendor finance isn’t just about transactions; it’s about relationships. When you facilitate financing, you demonstrate customer-centricity. Customers appreciate the flexibility and convenience, leading to stronger loyalty and repeat business.
It also opens doors to upselling. Customers who might have hesitated due to cost can now explore higher-tier solutions. It’s a win-win: They get an upgraded product, and you increase revenue.
Buy Now Pay Later for B2B
A new variation on vendor finance is Buy Now, Pay Later for B2B businesses. This is a neat option that can be used in broader range of sales situations and is much more instant.
As a B2B business it can be a massive headache offering your business customers payment terms. If you don’t offer terms you may lose the business. If you do offer terms then it hits your cashflow…and you end up chasing payments.
By offering buy now pay later you can solve these problems. By simply adding a payment link to your invoice template your clients can either elect to Pay Now or Pay Later. If they Pay Now, you’ll get funds instantly and there is no cost. If they choose Pay Later, they can apply for instant credit to spread the cost over 3 or 12 months. You’ll get paid instantly.
Read more here.
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Need advice on Vendor Finance?
Talk to one of our Business Finance Specialists. We’re on hand to take you through the options available.