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Offer financing to U.S. business customers through third-party lenders. Learn the costs, seller risks, application steps and payout requirements.
Your customer wants the equipment, accepts the price and needs a payment plan. You want to complete the sale without lending the purchase money yourself or collecting installments for years.
Third-party customer financing can separate those responsibilities.
The important distinction is between avoiding the customer’s long-term financing obligation and eliminating every cash requirement connected with the sale. A workable program needs to address both the customer’s repayment and your company’s payout.
Quick Answer: U.S. B2B sellers can offer financing through third-party lenders or lessors that fund approved customer purchases. A brokerage can coordinate the application without supplying the money itself. Your company avoids funding the customer’s long-term debt, but may still face operating costs, vendor fees, delivery obligations and contractual recourse. (Mehmi Financial Group)
Your company sells the product; an independent financing provider supplies the approved credit.
The buyer applies for financing, accepts the available terms and completes the required documentation. Your company receives payment according to the approved closing arrangement, while the customer makes financing payments to the designated lender, lessor or servicer.
A brokerage may help coordinate the transaction, but the broker and the source of capital are not necessarily the same company. Mehmi Financial Group, for example, identifies itself as an intermediary working with independent financing institutions rather than a direct lender. (Mehmi Financial Group)
Mehmi’s sortation-system vendor financing guide illustrates this separation between equipment sales and the customer’s financing agreement.
Compare that with borrowing against your own business line and letting the customer repay you gradually. Your company would still owe its lender and depend on collecting from the customer. You have financed the sale yourself, even though the original cash came from a bank.
No. Customer financing does not automatically finance your inventory, production or installation work before payout.
Map your supplier-payment dates against the financing provider’s settlement requirements. Identify any period when you must pay suppliers or employees before receiving the financed proceeds.
For custom equipment, ask whether the financing arrangement supports deposits or progress payments. An approval for the completed asset should not be treated as authorization to fund an unfinished order.
The palletizer vendor financing guide addresses this issue for systems requiring engineering, manufacturing and installation milestones.
Before committing to production, establish how any gap will be covered: customer funds, negotiated supplier terms, specifically approved progress funding or a separate facility for your business.
Removing a multi-year customer receivable is valuable. It is not the same as having no working-capital requirement.
Choose according to the purchase and the customer’s repayment needs.
For durable machinery, vehicles or commercial equipment, compare ownership-focused financing with leasing.
Review ownership during the agreement, repayment length, purchase options, residual amounts, return requirements and early termination. The SBA’s equipment-purchasing guidance emphasizes that lease structures differ and that buyout options and early-exit costs deserve attention. (Small Business Administration)
Mehmi’s equipment finance agreement versus lease comparison provides an equipment-specific framework for that discussion.
For repeat commercial purchases, a provider may offer deferred invoice terms while paying the seller earlier.
For example, Resolve describes financing approved Net 30/60 purchases and advancing seller funds under its program. That is a different repayment need from financing machinery over several years. It is also a provider-specific model, not a description of every Mehmi transaction. (ResolvePay)
Ask whether general business financing pays the customer or directly settles your invoice. Do not assume a borrower’s approval guarantees payment to your company.
A revolving line, a fixed term loan and factoring also perform different functions. Factoring involves purchasing accounts receivable, rather than simply issuing a conventional loan, as the CFPB’s official interpretation explains. (Consumer Financial Protection Bureau)
Match the product to the need. Short-term funding should address a manageable cash-flow gap, not disguise continuing operating losses.
Start with your products, typical financing amounts, customer profiles, states served and delivery requirements.
Ask prospective partners which transactions they can actually handle. Confirm who supplies capital, makes decisions, prepares agreements, services payments and manages complaints.
Evaluate any exclusivity, minimum-volume or compensation provisions before signing. A branded application should not be assumed to include custom software or unrestricted access to financing sources.
Your quote should identify the legal buyer and seller, purchase price, customer deposit and remaining balance.
For equipment, include the manufacturer, model, year, condition and serial number or VIN when available. Show freight, installation, software and training separately.
The warehouse-automation vendor financing guide demonstrates how to separate physical equipment from other project costs.
Do not inflate equipment prices to include unrelated working capital or make a customer contribution appear larger than it is.
Prepare customers to explain their operating history, requested amount, use of funds, existing debt and repayment source.
Have bank statements, financial statements, tax returns, ownership information and a debt schedule available when requested. The provider determines its application procedures and required information; there is no universal document package for every transaction. (Consumer Financial Protection Bureau)
For a larger project, Mehmi’s cold-storage financing documentation guide shows how financial records and the purchase budget fit together.
Use accurate, current information. Explain discrepancies rather than leaving the reviewer to reconstruct them.
Compare the financed amount, upfront contribution, fees, payment frequency, total repayment and early-payoff provisions.
Ask about collateral and personal guarantees separately. Determine who signs, what obligations are covered and whether liability is limited.
For equipment, consider age, condition, collateral value and remaining useful life. Extending repayment reduces the regular payment mathematically, but does not improve the asset’s condition.
Before releasing equipment, confirm the required sequence for documents, insurance, customer funds, delivery, acceptance and financing proceeds.
A multi-vendor project may have different payment dates for different suppliers. Mehmi’s loading-dock equipment financing guide explains why one overall approval does not necessarily authorize every supplier’s preferred payout schedule.
Never ask a customer to confirm delivery or acceptance before it actually happens.
Third-party capital does not automatically mean a cost-free or risk-free program.
Request a written fee schedule showing setup charges, subscriptions, transaction deductions, promotional subsidies and any reserves or holdbacks. Establish whether percentage charges apply to the full invoice or only the financed amount.
Balance’s published terms, for example, permit merchant-funded promotional financing and certain deductions from transaction proceeds. That demonstrates why the seller’s economics must be reviewed separately from the buyer’s payment. (Balance)
Read the agreement’s recourse provisions: circumstances in which the provider can seek money back from your company.
Ask about ordinary customer default, non-delivery, inaccurate invoices, fraud, cancellations, refunds and equipment disputes. Resolve distinguishes non-recourse protection for approved buyer credit risk from merchandise issues or merchant errors. Do not extend one type of protection to every possible problem. (ResolvePay)
A provider advancing only part of an invoice also leaves a different cash position from one paying the full approved amount. A temporary holdback is not necessarily a permanent fee, but it still affects liquidity.
Assume a U.S. vendor sells a machine for USD $150,000 before taxes. The customer contributes USD $30,000, leaving USD $120,000 financed by an independent lender.
For this mathematical illustration, assume:
The calculated payment is approximately USD $3,043.51 per month.
Total loan repayment is approximately USD $146,088.48, including USD $26,088.48 in interest. Including the initial contribution, total customer cash outlay is approximately USD $176,088.48, before excluded costs.
Suppose a slower month leaves the customer USD $5,200 after operating expenses and existing debt payments. The new payment reduces that remaining cash to approximately USD $2,156.49.
That cushion—not gross revenue—is the useful starting point for evaluating affordability.
The assumed vendor fee is USD $2,400.
Under the assumed closing instructions, the vendor receives USD $30,000 from the customer and USD $117,600 from the financing proceeds, for USD $147,600 in total.
The vendor does not collect the customer’s loan installments over four years.
However, suppose its USD $105,000 equipment-acquisition cost is payable before lender funding. After receiving the customer’s USD $30,000 contribution, the vendor still has a USD $75,000 pre-funding gap to address.
This shows the distinction: the lender finances the customer’s long-term balance, but the seller still needs an agreed plan for costs arising before payout.
For another illustration of how term length changes payments, review the reach-truck payment comparison. Treat its scenarios as illustrations, not current offers.
The figures above are not Mehmi pricing, a vendor-fee schedule, an approval or a customer result.
Regulation B covers business credit. Certain anti-discrimination and anti-discouragement provisions also apply to businesses that regularly refer applicants or select creditors, even when they do not fund the transaction. The CFPB’s official interpretation specifically addresses those referral activities. (Consumer Financial Protection Bureau)
Use consistent sales procedures. Do not let representatives invent credit rules or discourage applications based on personal assumptions.
Assign responsibility for required credit notifications as well. Business-credit notification rules vary by application category; an informal sales update should not replace the creditor’s required communication. (Consumer Financial Protection Bureau)
For example, New York’s closed-end commercial financing statute requires covered providers making specific offers to disclose financing amounts, costs, APR, repayment information, prepayment provisions and collateral requirements.
That is a particular statutory regime, not a rule applying identically to every U.S. transaction. Have qualified counsel review the activities, products, compensation and states involved in your program. (New York State Senate)
Applicable UCC and asset-specific rules determine how security interests are perfected. Washington’s enacted Article 9 provision, for example, establishes filing as a general method while specifying exceptions. Let the financing provider determine the appropriate process. (Washington State Legislature)
For used equipment, the packaging-line UCC and lien-check guide explains why ownership and existing creditor claims require review before payout.
Limit access to sensitive documents. The FTC’s information-security guidance recommends collecting only necessary information, restricting access and securely managing retained records. Salespeople may need application status without needing every owner’s identification or bank statement. (Federal Trade Commission)
Mehmi’s vendor financing program describes branded applications for websites and sales quotes, document uploads, application tracking, comparison of available approvals and specialist support.
Its published program states that there are no setup fees or membership costs. Confirm your actual agreement, transaction economics and any custom implementation work separately. (Mehmi Financial Group)
Mehmi acts as the financing brokerage and intermediary. Independent providers retain control over final approvals, pricing and funding.
No unrestricted nationwide availability should be assumed.
Unless an applicable authorization or exemption is confirmed, Mehmi’s published policy excludes general commercial loan-broker applications involving borrowers principally located in California, Illinois, Missouri, Nebraska, North Carolina, North Dakota and Vermont.
Separate restrictions apply to covered sales-based financing requiring broker registration in jurisdictions including Connecticut, Virginia and Texas, unless registration or a lawful exemption is confirmed. These are Mehmi’s operating restrictions, not a blanket prohibition on financing in those states. Review its current geographic-availability policy. (Mehmi Financial Group)
Possibly. Your decision not to supply lending capital does not determine the customer’s required contribution. Request the provider’s approved structure and identify which upfront costs the customer must cover.
Review both agreements for exclusivity and referral restrictions. Where permitted, keep a relationship that works and evaluate another source against a specific gap rather than sending every application to multiple providers.
Request a review of why the original application failed. Another source may assess a different structure, but additional applications do not solve insufficient repayment capacity or inaccurate documentation. Never change facts to obtain approval.
In the intended third-party model, scheduled financing payments go to the designated financing provider or servicer. Confirm who handles misdirected payments, servicing questions and complaints in the agreement rather than improvising after funding.
Pause when repayment depends on speculative work, the customer lacks operating reserves or the purchase has little practical value. Consider a smaller purchase, rental, phased project, existing bank option or waiting. Financing should support a sensible transaction, not conceal an unaffordable one.
Start with a financing partner, a clear application process and written payout requirements. Then determine what capital your company still needs before closing and what obligations remain afterward.
To discuss a program with Mehmi Financial Group, share your typical financing amount, confirmation that customers are in the United States, states served, products or equipment sold, customer use of funds and required purchase or launch timing.
Call 833-863-4644 or contact Mehmi Financial Group to discuss third-party financing for eligible U.S. transactions. (Mehmi Financial Group)
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