DLL Vendor Finance vs. Independent Vendor Financing Programs: Which Should OEMs Choose?
For original equipment manufacturers (OEMs), choosing a vendor financing partner is a decision about distribution strategy, customer affordability, and long-term financing flexibility.
An OEM selling agricultural equipment, CNC machinery, construction equipment, forklifts, or industrial automation systems may have two options: establish a strategic financing relationship with a specialist such as DLL, or build an independent vendor financing program using multiple lenders and financing intermediaries.
Both approaches can help customers acquire equipment without paying the entire purchase price upfront. However, they differ in financing-provider selection, dealer network management, underwriting, program economics, and the handling of transactions that fall outside standard credit criteria.
Quick Answer: DLL may be a stronger fit for OEMs seeking integrated retail financing, dealer inventory finance, and asset-lifecycle management through an established strategic partner. Independent multi-lender programs may suit OEMs with varied customers, used equipment, or complex transactions. A hybrid approach can combine both, subject to contractual restrictions and provider availability.
Is DLL actually different from an independent vendor financing program?
Yes, but the distinction needs clarification.
DLL is itself a third-party asset financing company, not necessarily a manufacturer-owned captive finance company. The meaningful comparison is between establishing a direct strategic OEM relationship with DLL and operating an independently coordinated financing program that may involve several lenders, lessors, or brokerage partners.
DLL's published financing solutions cover retail customer financing, commercial inventory financing, and used equipment. Its broader offering also includes digital financing tools and asset management services.
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An independent multi-lender program typically works differently. The OEM or its appointed intermediary coordinates financing arrangements across separate providers, each with its own underwriting criteria, documentation, pricing, and geographic coverage.
This distinction matters because a single strategic relationship does not necessarily mean a single financing product, and access to multiple lenders does not automatically mean customers receive better offers.
The question for OEM leadership is which structure fits the manufacturing business, dealer network, customer profiles, and financing needs most consistently.
What does DLL offer equipment manufacturers and their dealer networks?
DLL's main distinction is the breadth of financing it offers across the equipment lifecycle.
Rather than focusing exclusively on the customer purchasing a finished machine, DLL also provides solutions for dealer inventory, equipment leasing, used assets, and financing-related services.
Retail financing for end customers
DLL's U.S. retail finance program identifies several structures, including fair-market-value leases, pay-per-use programs, lease-by-the-hour arrangements, and pay-to-own financing agreements.
These address different customer requirements.
An agricultural equipment buyer with seasonal revenue may want payments that correspond more closely to its cash-flow cycle. A manufacturer planning to replace equipment regularly may prefer a lease with specific return or renewal options.
An owner intending to keep a machine for its full useful life may instead prefer ownership-oriented financing.
DLL's published product range makes it a credible option to investigate for these different requirements. However, specific products, promotional rates, and payment arrangements depend on the OEM program, borrower, equipment, and jurisdiction.
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Wholesale and dealer inventory financing
This is an important distinction that smaller vendor financing comparisons often overlook.
DLL offers commercial finance programs covering inventory financing, asset-based lending, and related services.
Its inventory products include Scheduled Payment Programs and Pay as Sold arrangements for qualifying dealer inventory.
Consider an OEM distributing agricultural machinery through several independent dealerships.
Those dealers may need financing to hold equipment before securing retail customers. Financing the inventory allows participating dealers to acquire eligible stock while managing the timing of repayment.
Once equipment is sold, a separate retail financing arrangement may help the final customer complete the purchase.
DLL can potentially address both stages, subject to the respective agreements and eligibility requirements.
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An independent retail financing brokerage should not be assumed to offer comparable dealer floorplan facilities. An OEM choosing a multi-provider program must evaluate inventory finance separately.
For a Canadian perspective on structuring manufacturer and dealer relationships, see Mehmi's vendor financing program guide for OEMs and distributors.
Used equipment financing and lifecycle management
DLL also offers used-equipment financing and services associated with equipment remarketing and asset management.
These capabilities may matter to OEMs that support trade-ins, refurbished machines, rentals, or customers who regularly upgrade equipment.
For instance, an equipment manufacturer may want its dealer network to trade used machines toward newer models while maintaining a financing option for the subsequent purchaser.
That requires more than approving a new-equipment loan.
A financing partner may need to consider equipment condition, remaining useful life, market value, existing liens, residual value, and potential remarketing.
DLL's product descriptions establish that it offers lifecycle-related solutions, but an OEM should confirm which asset categories and programs are available within the proposed relationship.
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Digital tools and OEM integrations
DLL advertises digital financing capabilities, including quotations, mobile tools, electronic documents, signatures, APIs, and portal access.
Its U.S. digital solutions page describes APIs that connect financing processes with business systems, from origination through contract administration.
This may appeal to OEMs with established dealer-management systems, enterprise resource planning software, or centralized sales operations.
However, DLL explicitly notes that digital tools vary by region. A feature available in a U.S. program should not automatically be considered available under a Canadian agreement.
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Ask for a demonstration covering your country, industry, dealer users, and intended integration rather than assuming every advertised capability is included.
What does an independent vendor financing program offer OEMs?
An independent program generally gives an OEM more flexibility to select how financing relationships are organized.
Instead of building its entire customer-financing process around one strategic provider, the manufacturer can establish relationships with multiple financing institutions or appoint a brokerage or intermediary to coordinate transactions.
For example, Mehmi Financial Group's embedded vendor financing program describes a multi-provider process with customer application access, documentation coordination, and transaction-status visibility.
Mehmi operates as a commercial financing brokerage and intermediary, not a lender. Its independent financing providers determine the actual credit decisions, pricing, agreements, and funding conditions.
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An independent program may allow an OEM to direct a straightforward equipment purchase to one suitable provider while assessing a different financing source for a used machine, a newer operating business, or an unusually structured transaction.
This is especially relevant when product categories, customer financial profiles, and purchase amounts vary.
An independent financing program does not necessarily give the OEM access to every lender, and multiple relationships do not guarantee better credit outcomes.
The OEM also needs a controlled application process. Sending customer data indiscriminately to several lenders can create unnecessary credit inquiries, duplicate applications, and inconsistent customer communications.
Mehmi's one-funder versus broker-backed vendor program guide examines the operating differences for Canadian equipment sellers.
DLL vs. independent vendor financing: How do the models compare?
1. Which provides greater control over financing providers?
An independent multi-provider structure generally gives the OEM more choice over which financing relationships to pursue.
With a direct DLL arrangement, program terms, available credit products, eligibility requirements, and funding conditions are established within DLL's applicable financing relationship.
This can simplify governance because dealer representatives work within a coordinated program.
An independently managed program can include several providers with different credit criteria and equipment specializations.
The disadvantage is operational complexity. Someone must determine which provider receives an application, reconcile competing terms, manage customer authorizations, and prevent duplicate submissions.
For OEMs comparing the available structures, our B2B vendor financing provider comparison guide explains how to assess coverage without treating the number of lenders as the primary measure of quality.
2. Which is better for customers with different credit profiles?
A multi-provider model can create additional financing pathways, but neither model guarantees approval.
DLL is an established equipment-financing specialist with multiple financial products. It should not be portrayed as having one universal, inflexible credit score requirement.
Nevertheless, every financing institution makes decisions based on its own underwriting policies and program constraints.
An independent intermediary may be able to identify a provider with a different appetite for the borrower, industry, equipment age, transaction size, or requested structure.
That matters for an OEM serving both established manufacturers and younger businesses.
A lender evaluating a customer may review operating history, cash flow, financial statements, bank activity, existing debt, business and owner credit, collateral value, and available liquidity.
The equipment itself also affects risk. A standard forklift with a broad resale market presents different collateral considerations from a highly customized automation line.
U.S. manufacturers can review our customer financing requirements guide for U.S. vendors for a more detailed underwriting explanation.
3. Which is better for large OEM dealer networks?
DLL may be attractive when the OEM needs coordinated retail finance and dealer inventory finance across an established network.
Dealer inventory credit, retail financing, servicing, and equipment remarketing can be designed as related parts of the manufacturer's distribution strategy.
That may be more useful than a brokerage focused primarily on financing the end customer's purchase.
However, an OEM with dealers in several markets should confirm whether DLL can offer the desired services through the relevant local entities and agreements.
An independent model may be attractive when dealers have substantial differences in customer type, sales volume, equipment category, or preferred financing relationships.
Neither model should require a manufacturer to abandon commercially valuable existing arrangements without first evaluating contractual exclusivity and transition costs.
4. Which offers more flexibility for branding and integration?
Both models can support branded customer financing, but the implementation scope is negotiated.
DLL's published capabilities include integrated digital tools and financing programs developed with manufacturers and suppliers.
An independent intermediary or platform may offer a branded financing application, dealer portal, or customer-facing payment experience.
The differences become clearer when discussing actual requirements: CRM connectivity, quotation integration, user permissions, application tracking, document exchange, dealer-level reporting, and support responsibilities.
White-label financing describes the customer-facing presentation. It does not mean the OEM becomes the lender or controls the final credit decision.
Our white-label equipment financing guide for dealers explains how branding, underwriting, and funding responsibilities should remain separate.
5. Which offers lower financing costs?
Neither model can be declared cheaper without comparable written proposals.
DLL does not publish one universal rate schedule for every OEM financing transaction. Independent financing providers likewise evaluate applicants and equipment individually.
An apparently lower payment may result from a longer term, a larger residual value, or a different end-of-term purchase obligation—not necessarily lower financing costs.
OEMs should compare customer interest or lease charges separately from program expenses paid by the manufacturer or dealer.
Those expenses may include financing subsidies for promotions, platform implementation, integration, administration, transaction charges, or contract-specific obligations.
For U.S. operations, our vendor financing program cost guide provides a breakdown of the relevant categories.
Canadian OEMs should use the separate Canadian vendor financing fee guide, rather than assuming U.S. pricing and tax treatment apply in Canada.
Which OEMs should consider DLL, independent financing, or both?
Choose a strategic DLL relationship when distribution finance is central
DLL deserves consideration when an OEM has an established dealer network, relatively consistent equipment categories, and a meaningful need for coordinated financing throughout the distribution chain.
An agricultural machinery manufacturer is a useful example. Its dealers may need inventory financing before the planting season, customers may need structured equipment payments, and the manufacturer may want to support trade-ins or equipment replacement.
A comprehensive strategic financing relationship may help coordinate those requirements.
However, the OEM should first establish whether the specific inventory, retail, and lifecycle programs it wants are available in its markets and suitable for its dealer network.
Choose an independent program when customer and equipment variation is the main challenge
Independent multi-provider financing is worth evaluating when the OEM sells to customers with widely different financial circumstances or markets.
Consider a machinery manufacturer selling both new CNC equipment and refurbished production systems.
One customer is an established manufacturer with audited financial statements. Another is a growing machine shop with a shorter operating history and substantial existing equipment debt.
Their financing needs and risks may be different enough to justify reviewing separate providers.
A managed financing desk can help organize those reviews without turning the OEM's sales representatives into credit underwriters.
The trade-off is that separate providers can introduce different contracts, servicing processes, pricing structures, and administrative responsibilities.
Canadian OEMs can use Mehmi's customer financing requirements guide to understand the information that may be needed before those applications are reviewed.
Consider a hybrid program when both needs matter
For an OEM that needs a major strategic partner but also encounters transactions outside that partner's normal programs, a hybrid structure may be worth investigating.
Under a hypothetical arrangement, DLL or another direct financing partner could handle agreed primary retail and inventory-finance business. A separately authorized intermediary could consider selected transactions that the primary program does not accommodate.
Such an arrangement must be expressly permitted under the relevant agreements.
An OEM should not assume it may redirect applications, use another provider's rate information, or share customer documents outside its contracted program.
The primary financing partner, secondary routing rules, customer permissions, and ownership of each application need to be established in writing.
A hybrid program works only when the additional financing path complements the primary program rather than creating conflicting submissions or responsibilities.
What happens to OEM and dealer payments after a customer is approved?
A financing approval is not the same as completed funding.
With either model, the lender or lessor may require executed contracts, a final invoice, equipment identification, proof of insurance, existing-lien clearance, a customer contribution, and delivery or acceptance documentation.
The OEM should establish whether the dealer or manufacturer is the equipment seller receiving payment.
For custom manufacturing, this can become complicated.
A machine that requires a substantial production deposit and several months of assembly may not be eligible for the same payment process as finished equipment delivered from inventory.
Before accepting a non-refundable production commitment, determine whether the financing arrangement permits approved deposits, progress payments, or prefunding. These features should never be assumed.
OEMs should also examine vendor-agreement provisions involving repurchase obligations, equipment delivery, inaccurate representations, refunds, disputes, and other forms of recourse.
An outside lender assuming ordinary customer credit risk does not automatically eliminate the manufacturer's contractual responsibilities.
Our guide to Canadian vendor financing payouts explains how dealer contributions, funding conditions, and payment timing should be reconciled.
Illustrative example: What might an OEM customer financing transaction cost?
Consider a Canadian OEM selling industrial equipment through an authorized dealer.
The machine costs CAD $240,000 before applicable taxes. The customer contributes CAD $40,000 and finances CAD $200,000.
The example assumes a fully amortizing equipment loan at a fixed nominal annual interest rate of 8.75%, calculated monthly, over 60 months. Payments are made monthly in arrears.
ILLUSTRATIVE EXAMPLE — NOT DLL OR MEHMI PRICING
Equipment purchase price
CAD $240,000
Loan principal
CAD $200,000
Estimated monthly payment
CAD $4,127.45
Total scheduled loan payments
CAD $247,646.79
Total interest
CAD $47,646.79
Separate borrower documentation fee
CAD $1,250
Total customer cash outlay: approximately CAD $288,896.79, including the down payment, loan repayments, and separate documentation fee.
Assumes no balloon or residual payment. Calculations use unrounded installments; the final payment may be adjusted slightly for rounding.
The financing cost to the customer is CAD $48,896.79, comprising interest and the stated documentation fee. The 8.75% rate is not a fee-inclusive APR.
The example excludes GST/HST, applicable provincial taxes, freight, installation, insurance, equipment servicing, registration costs, and other transaction-specific expenses. No early payoff or late-payment charge is assumed.
Now consider the dealer's economics.
Suppose, solely for illustration, the financing agreement imposes a dealer participation charge equal to 1.5% of the financed principal.
That charge would equal CAD $3,000. If deducted from the financing proceeds, the dealer would receive CAD $197,000 from the financing provider plus CAD $40,000 from the customer, for total net proceeds of CAD $237,000 before its own equipment and operating costs.
This hypothetical dealer charge is not a claim about DLL, Mehmi, or any currently available program. It demonstrates why an OEM must compare its dealers' net proceeds separately from customers' payment obligations.
For the customer, the payment must also fit operating cash flow. If CAD $6,200 is normally available each month after existing operating costs and debt payments, the new loan leaves about CAD $2,072.55. A weaker month with only CAD $4,000 available would produce a shortfall of approximately CAD $127.45.
OEMs and dealers can model Canadian-dollar loan scenarios using Mehmi's equipment financing calculator. The calculator uses CAD, excludes applicable sales taxes, and provides planning estimates rather than financing offers.
U.S. OEMs should model U.S.-dollar transactions independently using applicable U.S. financing terms and costs, not convert this Canadian illustration into a purported U.S. offer.
What differs between U.S. and Canadian OEM financing programs?
A manufacturer operating in both countries should not assume that the same finance agreement, disclosures, tax treatment, or security documentation applies throughout North America.
United States
U.S. commercial equipment financing may involve security interests perfected through the Uniform Commercial Code (UCC), with additional requirements for certain titled assets.
The California Secretary of State's UCC guidance illustrates how financing statements are used to establish security interests and priority. The applicable state and collateral determine the actual procedures.
The federal Equal Credit Opportunity Act and Regulation B also apply to commercial credit, as explained by the Consumer Financial Protection Bureau. State-specific commercial financing disclosure and licensing requirements may impose additional obligations.
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U.S. transactions should use USD amounts and financing terms established for the applicable U.S. borrower and product.
Canada
Canadian equipment financing generally follows provincial personal property security frameworks.
Common-law provinces use Personal Property Security Act systems, such as Ontario's PPSA. Quebec uses its own civil-law framework, including the RDPRM for applicable rights over movable property.
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GST/HST and other applicable provincial taxes must also be considered according to the transaction's actual treatment.
Canadian programs collecting personal information about business owners and guarantors should address PIPEDA and applicable provincial privacy laws. The Office of the Privacy Commissioner of Canada explains the requirements for meaningful consent, including disclosure of why personal information is collected and with whom it is shared.
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For either country, the OEM should confirm the lender's legal entity, product availability, dealer responsibilities, and required customer disclosures before launch.
How should OEMs evaluate DLL against independent financing partners?
The most reliable selection method is a controlled evaluation using representative transactions.
Start with your actual dealer and customer profiles. Select transactions covering new equipment, used assets, different financing amounts, and any production-stage funding requirements.
Request a demonstration of each proposed financing process.
The OEM should see who creates quotations, who obtains customer consent, how information reaches underwriting, how financing conditions are communicated, and when equipment can be delivered or released.
Evaluate what happens after a decline, not only after an approval.
Ask prospective partners to explain all fees, exclusivity provisions, customer-information arrangements, vendor recourse, servicing responsibilities, and what happens to outstanding applications if the relationship ends.
Then consider a limited pilot before committing to extensive software integration or restructuring the entire dealer network.
Our guide to creating a vendor financing programpublished geographic policy updated October 7, 2026, general U.S. commercial loan-broker applications involving borrowers principally located in California, Illinois, Missouri, Nebraska, North Carolina, North Dakota, and Vermont are restricted unless the applicable authorization or exemption is confirmed. Additional product-specific restrictions apply.
Mehmi Financial Group
Discuss an Independent OEM Vendor Financing Program With Mehmi Financial Group
OEMs evaluating DLL, an independent financing arrangement, or a potential hybrid program should start with the equipment they manufacture and the customers their dealers actually serve.
Mehmi Financial Group can discuss brokerage-assisted equipment financing programs, potential multi-provider placement, branded application workflows, and transaction coordination for eligible manufacturers and distributors.
To evaluate program fit, share your typical financing amount in USD or CAD, whether you serve the United States or Canada, the relevant states or provinces, the equipment or other use of funds, and your expected purchasing or program-launch timing.
Mehmi is a commercial financing brokerage and intermediary, not a direct lender. Independent financing providers determine eligibility, pricing, approvals, and funding conditions. Mehmi does not guarantee that its arrangements will outperform DLL or any other provider.
Call Mehmi Financial Group at 833-863-4644 or contact Mehmi to discuss an OEM vendor financing program.