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Compare U.S. vendor financing program costs, including setup fees, seller charges, rate subsidies, customer repayments and contract risks.
A “$0 setup fee” answers one question: what the financing partner charges to get started. It does not tell you what comes out of each sale, what your customer pays or what happens if a transaction is cancelled.
For U.S. equipment dealers, manufacturers and B2B suppliers, the useful comparison is total program cost against the profit from completed sales.
Quick Answer: A U.S. vendor financing program can have no setup or membership fee, but that does not establish its total cost. Budget separately for seller transaction charges, optional financing subsidies, implementation, administration and contractual risk. Customer interest and loan fees are separate. Obtain written pricing for your actual sales model. (Mehmi Group)
Yes, some programs advertise no setup or membership charge. That is not the same as every expense being zero.
Mehmi Financial Group’s vendor financing program publishes no setup fees or membership costs. Confirm the agreement’s scope, including any transaction-specific arrangements or requested customization. (Mehmi Group)
Other providers use different models. TreviPay’s pricing explanation describes a transaction fee typically deducted from seller settlement, varying by program, industry and volume. Resolve’s pricing page describes custom plans based on implementation scope and risk-based invoice-advance fees. Those are provider-specific models, not standard U.S. fee schedules. (TreviPay)
This guide concerns helping business customers finance purchases from your company. Keep that budget separate from financing the inventory on your lot or lending customers your own money.
Also separate equipment loans and leases from short-term invoice terms. A fee for advancing an invoice and the cost of arranging a multi-year equipment purchase do not represent identical services.
Request an itemized proposal showing what is charged, when it becomes payable and whether it is refundable.
Ask whether the quoted arrangement includes a hosted application, branded landing page, document collection and application tracking.
Then identify anything your company must provide: website changes, quotation templates, software connections, testing and ongoing maintenance.
Resolve, for example, prices plans around implementation scope and lists accounting, e-commerce and API capabilities. Do not interpret access to an API as a promise that someone will build and maintain your integration without charge. (ResolvePay)
For an initial rollout, consider a hosted application before commissioning extensive custom development. Prove that customers use the financing process before paying to automate every step.
A percentage fee needs a clearly defined calculation base.
Ask whether it applies to the entire invoice, the amount financed, the amount advanced or another figure. Confirm whether taxes, deposits, freight and installation are included.
Also establish whether the charge is earned when an application is submitted, financing is approved or the transaction funds.
TreviPay’s published settlement-fee model demonstrates why this matters: the seller receives payment after an agreed deduction rather than treating the entire invoice as immediately available proceeds. (TreviPay)
Before advertising low-rate or “0%” financing, request a written explanation of who funds the promotion.
If your business agrees to subsidize the customer’s financing, include that subsidy in the sale’s profitability calculation. Compare it with a cash discount rather than treating it as free marketing.
Clarify qualifying customers, permitted terms, mandatory fees and what happens if the order changes or is cancelled. Do not promise a promotion before the financing provider approves its terms and presentation.
Budget for the work your own team must perform: training salespeople, preparing accurate invoices, reconciling deposits, responding to document requests and confirming delivery.
For complex equipment, standardize the quotation before the first application. Mehmi’s palletizer vendor financing guide for Atlanta illustrates how to separate machinery, software, installation and commissioning costs.
Your program budget should include effort spent on unsuccessful applications as well as funded sales. Otherwise, the cost per completed transaction will look artificially low.
The customer’s financing agreement and the vendor’s partner agreement answer different questions.
An interest-bearing equipment loan creates repayment obligations for the buyer. A seller may separately pay a transaction fee or promotional subsidy.
Under another model, the seller may fund invoice terms while the buyer pays no ordinary usage charge. Resolve’s buyer FAQ, for example, states that applying for and using its net terms does not carry a buyer fee, while late fees may apply. (ResolvePay)
For customer comparisons, review:
Do not assume a lease automatically transfers ownership or permits inexpensive early termination. The SBA’s equipment acquisition guidance specifically identifies purchase options and early-termination penalties as items to examine. (Small Business Administration)
Keep pricing measures distinct. A factor rate or flat charge is not an annual interest rate or APR. Compare actual cash flows and fees rather than matching unlike percentages. (Mehmi Group)
Assume a U.S. vendor sells equipment for USD $150,000. The customer contributes USD $30,000, leaving USD $120,000 financed.
For this mathematical example, assume:
Sales taxes, delivery, installation, insurance, maintenance, legal expenses, filing costs and internal administration are excluded.
These assumptions are not Mehmi pricing, a lender quote or representative U.S. market rates.
The calculated monthly payment is approximately USD $3,014.78.
Using the unrounded payment calculation, scheduled repayments total approximately USD $144,709.27, including USD $24,709.27 in interest.
Including the separately paid borrower fee, financing cost is approximately USD $25,309.27.
The customer needs USD $30,600 upfront for the down payment and fee. Total cash paid, including the down payment, fee and scheduled repayments, is approximately USD $175,309.27.
Rounding may slightly adjust the final payment. The assumed 9.5% interest rate is not a fee-inclusive APR.
The assumed vendor fee is:
USD $120,000 × 2.5% = USD $3,000.
The financing provider therefore pays the vendor USD $117,000. Adding the customer’s USD $30,000 contribution produces total seller receipts of USD $147,000.
The buyer still owes the agreed USD $120,000 loan principal. The vendor fee is absorbed by the seller, not added again to the buyer’s principal in this example.
Assume the vendor’s equipment cost is USD $112,500. Before financing costs, the sale produces USD $37,500 of margin. After the vendor fee, the remaining contribution is USD $34,500, before overhead, taxes and other selling costs.
The fee equals 2% of the selling price but 8% of the original margin. That is why a small-looking percentage deserves attention.
Suppose the buyer has USD $6,000 available monthly after operating expenses and existing debt payments. The proposed payment leaves approximately USD $2,985.22.
During a slower month with only USD $3,500 available, the cushion falls to approximately USD $485.22.
A profitable sale for the vendor can still be an unsuitable purchase for the customer. Evaluate both sides.
A low-cost program offers little value if it rarely finances your actual customers.
Ask the partner to explain how it evaluates operating history, cash flow, credit, existing obligations and the purpose of the purchase. Discuss your customer mix without assuming one credit score or down-payment requirement applies universally.
Prepare a representative transaction package: the buyer’s legal business details, requested amount, itemized quote and purchase purpose. The customer should provide financial statements, bank statements, debt information or supporting contracts through the authorized process when requested.
For used equipment, clarify age, usage, condition, ownership and remaining useful life. Mehmi’s older day cab financing guide for Rincon, Georgia shows why maintenance records, inspections and asset identification deserve attention.
For a declined file, identify what needs to change before another submission. The Duluth sortation-system vendor guide discusses connecting a second-look request to the original financing obstacle.
Do not solve weak repayment capacity by extending the term beyond a sensible equipment life or consuming all the customer’s operating reserves.
Separate permanent charges from money temporarily withheld.
A fee reduces proceeds. A reserve or holdback may instead delay access to cash, depending on its release conditions. Ask when it becomes payable, what can be deducted and whether unresolved claims can extend the hold.
That distinction affects your working-capital forecast even when no additional fee appears.
Next, examine risk allocation. Resolve expressly distinguishes protection against approved-buyer credit losses from disputes involving merchandise issues or merchant error. Protection against one does not automatically resolve the other. (ResolvePay)
Have the partner explain its treatment of non-delivery, cancellations, refunds, inaccurate representations and any repurchase obligations.
For installed equipment, agree on the sequence for deposits, shipment, installation, acceptance and vendor payment. Mehmi’s College Park warehouse-automation financing guide addresses those project-funding questions.
Do not release equipment solely because a customer forwards an approval message. Obtain the required funding or release confirmation, and never request acceptance documentation before the relevant delivery or installation has occurred.
Budget for a review of your actual role, agreements and customer-facing process.
The CFPB’s Regulation B guidance confirms that equal-credit-opportunity requirements apply to commercial credit as well as personal credit. New York also has standardized disclosure requirements for covered commercial financing offers. Using a third-party partner is not a reason to leave responsibilities undefined. (Consumer Financial Protection Bureau)
Ask counsel and the provider who handles applicable authorizations, disclosures, records, complaints and state availability.
For secured equipment, obtain an explanation of collateral and filing requirements. UCC filings can perfect security interests and establish priority; the California Secretary of State’s explanation describes that function. Request itemization of government filing charges and any separate provider administration fee. (California Secretary of State)
Mehmi’s published policy restricts general commercial loan-broker applications involving borrowers principally located in California, Illinois, Missouri, Nebraska, North Carolina, North Dakota and Vermont, unless an applicable authorization or exemption is confirmed. Additional product-specific restrictions apply. These are Mehmi’s business restrictions, not a claim that financing is unavailable in those states. (Mehmi Group)
Measure additional contribution, not financing-influenced revenue alone.
A customer who would have purchased anyway may switch from cash to seller-subsidized financing. That creates a program cost without necessarily creating another sale.
For a management comparison, calculate:
Additional contribution from sales genuinely gained or retained, plus measurable savings and earned compensation, minus all program expenses.
Include fees and subsidies on all financed sales, including purchases that would otherwise have closed. Include administration for declined and abandoned applications.
Track cost per funded sale alongside offer acceptance, time to seller payment, cancellations and complaints. Do not judge success solely by application count.
Start with limited implementation spending. Expand only when funded volume and operational savings justify it.
For customers, keep alternatives available: cash that does not impair liquidity, an existing bank facility, rental, a smaller purchase or waiting. Financing should not conceal continuing losses or uncertain demand.
Mehmi publishes no setup or membership charge. That does not establish that every customization or transaction-related expense is included, nor does it make the customer’s financing free. Confirm the applicable agreement before budgeting. (Mehmi Group)
Not automatically. In the illustrative loan above, the customer pays interest and the vendor pays a separate transaction fee. A promotional arrangement can allocate costs differently. Ask for both agreements to be explained before offering a particular payment.
Do not assume you can. Have the financing partner and counsel review whether it is permitted under the agreement and applicable rules, how it must be disclosed and whether it changes the approved transaction. Do not inflate an equipment invoice to hide a charge.
Ask which charges arise at application, approval and funding. Also establish whether separately authorized inspections, appraisals or legal work remain payable after a decline or cancellation. Do not assume every incurred expense disappears when financing does not proceed.
Include compensation in your forecast only when the written agreement establishes eligibility, payment timing and reversal conditions. Assess the economics without relying on unconfirmed commission, and clarify any required disclosures.
Compare a straightforward hosted or referral process before paying for extensive customization. Use a small rollout to establish customer demand, documentation workload and funded volume. The least expensive implementation is the one that solves your current sales problem without unnecessary work.
Mehmi’s program describes branded applications, document uploads, deal tracking and financing-specialist support. Mehmi Financial Group is a brokerage and intermediary, not a direct lender; independent providers determine approval and financing terms. (Mehmi Group)
To evaluate program costs, provide your typical financing amount in USD, U.S. dealership and customer states, equipment or other use of funds, expected monthly volume and purchase or launch timing.
Call Mehmi Financial Group at 833-863-4644 or contact the team to discuss vendor program pricing. Request a written breakdown of seller charges, customer costs, funding conditions and any customization before committing. (Mehmi Group)
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