Vendor Financing Guide
Vendors who sell equipment, machinery, technology, or other business assets routinely encounter buyers who need financing to complete a purchase. How vendors offer financing options varies: in-house or captive programs, lease structures, and referral partnerships with external financing sources. Understanding these channels helps vendors present options when buyers cannot pay cash.
Buyers often cannot pay cash for equipment. Vendors who cannot offer financing risk losing the sale. In-house or captive programs handle many transactions, but they operate within credit boxes, industry restrictions, and exposure limits. When a buyer falls outside those guidelines, the vendor needs an alternative. How vendors make money from financing includes both the sale itself and, when structured correctly, revenue share from referral partnerships when deals close through external financing.
Referral partnerships extend the vendor's financing toolkit. When in-house declines, the vendor can refer the deal to a financing partner. The partner evaluates the opportunity and, if appropriate, matches it to a lender. The vendor introduces; the partner evaluates and funds. If the deal closes, the vendor may receive revenue share per the referral agreement. No approval is promised—each deal is evaluated on its merits. See financing for equipment vendors for more context.
Situations where vendors present financing options:
Vendors typically present in-house financing first. When that path does not work, referral partnerships provide an alternative. The vendor with a signed referral agreement submits the deal to the financing partner. The partner evaluates the opportunity and, if appropriate, matches it to a lender in their network. The vendor does not broker the loan—they introduce the opportunity and may receive revenue share when the deal closes.
Deals are reviewed based on multiple factors: credit profile, revenue, time in business, collateral, industry, and structure. Opportunities may qualify depending on how these factors align with lender appetites. Equipment vendor financing partnerships often handle deals that fall outside in-house guidelines. Financing options vary by lender; what one source declines, another may consider.
Manufacturing equipment vendor. A machinery dealer offers in-house financing. When the program declines a buyer due to credit, the vendor refers the deal to a financing partner. An alternative lender with equipment-backed financing may consider the deal depending on structure and collateral.
Technology vendor with program limits. A software and hardware vendor has a captive program with a $100K cap. A client needs $250K. The vendor refers to a partner. External lenders may have different limits.
Medical equipment and industry guidelines. A dental equipment supplier's in-house program does not serve certain practice types. The vendor refers to a referral partner network. Alternative lenders may have different industry guidelines.
Vendors use in-house financing as the primary path. They use referral partnerships when in-house declines, when deal size or structure exceeds limits, or when the buyer's profile falls outside guidelines. The goal is to preserve the sale and the relationship. Vendors who understand can vendors get paid for referring financing can add a revenue stream when deals close through external partners.
Referral partnerships are not a guarantee. They are an additional path to explore when the primary path does not work. Send declined business loans and hard-to-place business loans for review through the referral partner process. Review the referral agreement before submitting.
Submit borrower and request details by email.
We evaluate the opportunity and identify possible funding paths based on multiple factors.
Partners stay informed throughout the process.
When a deal closes, partners may receive 35% revenue share per the agreement.
FAQ
Vendors typically offer financing through in-house or captive programs, lease options, and referral partnerships with external financing sources. In-house programs are often the first option; referral partnerships may handle deals that fall outside in-house guidelines.
Captive or in-house financing is a program owned or controlled by the vendor or its parent company. It provides financing directly to the vendor's customers. These programs have credit guidelines, industry restrictions, and exposure limits. Deals outside those guidelines may be referred to external partners.
Vendors use referral partnerships when in-house programs decline a buyer, when deal size or structure exceeds program limits, or when the buyer's industry or credit falls outside guidelines. The vendor introduces the opportunity; the financing partner evaluates it.
Yes. Vendors with a signed referral agreement may receive revenue share when referred transactions close—often around 35%. Compensation is based on successful placements. See can-vendors-get-paid-for-referring-financing.html for details.
Vendors may offer equipment loans, leases, chattel mortgages, and other structures depending on the program. Structures vary by in-house program and external financing partners. Each deal is evaluated based on lender guidelines.
Yes. Vendors must review and sign the referral agreement before submitting deals to a financing partner. The agreement defines compensation, protects both parties, and establishes the process.
Vendor with a financing opportunity?
Review the referral agreement, sign it, and submit opportunities for evaluation.
