Swoop for Vendors

High approval rates.
Swift payouts.

Supercharge your equipment sales.

What is Swoop for vendors?

It’s a full service that gives you the ability to offer payment solutions to your clients, allowing them to finance the purchase of any business asset or equipment.

The process is clear, simple, and fast. Plus you’ll get a dedicated expert (a business development manager) to guide you every step of the way.

Our panel of lenders is ever-growing. Whether your client is a small business, or large international organisation, we have a range of flexible and affordable options to suit.

Panel Vendors

What's in it for you?

Ability to upsell and cross sell

The ability to upsell and cross sell

Overcome affordability or budget objections

A way to overcome affordability/budget objections

White labeled Swoop for Vendors portal

Access to our vendors portal

Dedicated Business Development Manager

A dedicated business development manager

A comprehensive funding panel

A huge funding panel

Any business or credit considered

We consider all businesses

Swift processes and payouts

Swift processes and payouts

Stage payment and payment before delivery available

Stage payment and payment before delivery

Marketing support

Marketing support

Other big benefits...

How Swoop for vendors works

Who is classed as a ‘vendor’?

Vendors are businesses that sell vehicles, machinery, equipment and other business assets to other businesses.

Vendor finance provides a facility for these dealers, manufacturers, resellers or suppliers to offer affordable asset finance to their customers.

To read about the differences between a vendor and supplier, click here.

What is vendor finance?

Vendor finance is a loan from a seller, (vendor, supplier, manufacturer, reseller etc), to the buyer of their products. (Vendor finance may also be called ‘trade finance’ or ‘trade credit’). In a vendor-financing agreement, the vendor lends the buyer the value of the sold goods and is repaid by regular instalments, or by a lump sum at a fixed future date. A form of asset finance, vendor financing is a ‘buy now pay later’ loan agreement between the supplier and the buyer. Some vendors may provide the capital for these loans themselves. Others may utilise the capital and services of an external finance provider. 

A form of asset finance, vendor financing is an ideal way for these B2B equipment suppliers, manufacturers and resellers wishing to expand their sales network, maintain good customer relationships, and maintain profit margins.

How does a typical vendor loan work?

Vendor finance is a facility that can help boost a vendors profitability by complementing the asset or equipment sales.  Swoop for vendors can provide affordable and efficient financing solutions for the vendors’ customers. 

Because of increased risk, vendor financing usually charges higher interest rates than traditional bank loans. Depending on the type of goods being financed, repayment periods for vendor loans can vary significantly – from a few months up to five years or more.

Does a vendor loan transfer ownership of the goods to the buyer?

No. The vendor retains ownership of the sold inventory or equipment until they are paid for in full, plus interest and any fees. 

Is other collateral (security) needed with a vendor loan?

It may be. Usually, the sold goods act as security for the loan, but in some cases, the vendor may ask for further security such as a Personal Guarantee.

What happens if the buyer defaults on a vendor loan?

The finance provider may repossess the asset or equipment that was sold, claim against assets used as supplementary collateral, or may be entitled to the buyer’s future cashflow.

What are the advantages of a vendor loan?

  • Allows buyers to purchase goods regardless of their cashflow or budget.
  • Opens sales channels to more potential customers.
  • Supports higher value sales.
  • Overcomes price objections with affordable payment terms.
  • Swifter sales process, reduces the time of the average sales process, by removing any reason for your customer delaying or shopping around.
  • Improves cashflow, removing the need to offer inhouse credit terms.
  • Can create a sales advantage over your competitors.

What are the advantages of vendor loan to customers?

  • No need for hefty deposits, vendor finance can cover the complete purchase price.
  • Vendor finance can have added tax efficient benefits.
  • A healthy cashflow.
  • Fixed payments, even if interest rates rise.
  • Swift process, quick decisions and settlement of the vendors invoice.
  • Get the best equipment for the business when they need it, not when they can afford it.
  • Protects existing credit lines.

What are the disadvantages of a vendor loan?

  • Risk of buyer default.
  • Deferring payment can affect your cashflow unless you work with a third-party lender.
  • Increased administration and costs for vendors who provide in-house financing.

What’s the difference between vendor finance and a vendor note?

‘Vendor finance’ describes a loan by a seller to the buyer of the seller’s goods and services. A ‘vendor note’ is the contract that contains the details of such a loan –  cash value, description of the sold goods or services, interest rate, fees, repayment schedule, etc. 

What are the different types of vendor finance?

There are two main types of vendor finance:

  • Debt vendor finance

In debt vendor financing, the provides a loan to the buyer of the seller’s goods and services. The buyer (borrower) agrees to pay the agreed price, plus an interest charge. The total sum is either repaid in regular instalments or via a lump sum on a set future date. This is the most common form of vendor finance.

  • Equity vendor finance

With equity vendor financing, the vendor provides goods or services in exchange for an agreed-upon amount of the buyer’s company stock. Equity vendor financing is more common with start-up businesses, as they often prefer to release shares instead of spending hard-won invested capital on initial inventory and equipment. 

Is vendor financing right for me?

Swoop for Vendors is a great solution for sellers who wish to accelerate their sales stream, increase turnover, and upsell equipment to increase the value of each sale. Plus, customers who benefit from this extra interaction and transaction value are more likely to become long-term clients who will buy again and again.

For buyers, vendor financing is an ideal way to get the equipment they need when they need it, instead of waiting for cashflow to improve.

Get started with Swoop

Vendor financing is a great way to increase business opportunities and create long-lasting vendor/customer relationships. However, for vendors, setting up an in-house financing department can be costly and time-consuming, and it may place unwelcome strain on cashflow. Working with a lending partner who can provide the necessary capital, vendor lending experience and loan administration may be a better way to go.

Swoop has access to vendor-finance lenders, with terms and conditions to suit every vendor’s business situation. Make your business grow faster with the best vendor financing today.

FAQs

We provide you with full training on how to use our platform and your clients with training on the benefits of a finance facility. We also offer additional and ongoing training as it's needed.

Each vendor will have a dedicated business development manager to support with any training, general queries and feedback.

The Swoop for Vendors platform has been especially developed so that vendors can prepare and submit deals without appointed representative status for the FCA. 

We know some vendors would prefer to have appointed representative status, and we are happy to provide it under Swoop’s FCA licence.

We can provide indemnity insurance. To learn more, please fill out the form that appears when you click 'Register your interest'.

We know that all vendors have different needs. With this in mind, we've created the following packages:

Tech packageAccess to the tech platform to allow client onboarding, bank and accountancy integrations, whole of market access, deal tracking, dynamic applications and deal submission. You'll also receive ongoing training and support from Swoop's specialist vendors team.
Tech + white label (own branded site)Tech package + own branding on all client-facing software. A white label site enables the vendors to onboard clients with Swoop’s smart onboarding.

Our dedicated vendor team will give you and your clients an efficient and professional service throughout the process.  You can massively boost the competitiveness of your market position by offering our complete finance solution!

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

To read our editorial policy, please click here.

Clever finance tips and the latest news

delivered to your inbox, every week

Join the 70,000+ businesses just like yours getting the Swoop newsletter.

Free. No spam. Opt out whenever you like.

We work with world class partners to help us support businesses with finance

close
Looks like you're in . Go to our site to find relevant products for your country. Go to Swoop No, stay on this page