Vendor Finance

The model is designed as a simple guide. The details of pricing, documentation and credit status all have a role to play. We would recommend consulting your internal or external financial advisors before entering into any new type of financial arrangement. Model Assumptions.

• Reduced cost
  In the vendor finance structure the cost of sale is shared between two parties with direct finance it is not.
   
• Residual value
  The value to be gained from the equipment after you have used it can be better reflected by the equipment vendor than you or a financier.
   
• Security
  The more the performance of the equipment is dependent on the vendor the more comfort taken from the obligation for repayment being through the vendors financial service.
   
• Line of Credit
  Vendor finance is viewed as an alternative line of credit that can be of particular use to small and new start companies.

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