Whether delivered as part of a corporate strategic offering or a sales aid package to boost product sales Vendor Finance is becoming an increasingly important client offering in promoting sales. Key to Vendor Finance is the fact that the finance package can remove or reduce the upfront cash that an end customer needs to commit, something even more important in current times. It also provides the client with prompt payment (from the finance company).
In many instances, as the finance model is built around a fixed monthly payment for use of the asset this becomes a revenue or “opex” spend, rather than a capital expense requiring “capex” budget approval. This can sometimes mean that it is easier to secure the product sale as the end customer sign off process can be different for revenue-based expenditure.
Vendor finance is typically delivered as a finance lease, but can also be on a hire purchase basis.
For our corporate clients, Vendor Finance is frequently beneficial to them as we have the ability to arrange volume funding programmes in support of a diverse array of assets and also at funding levels from the tens of thousands to assets in the million-plus category.