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Typical Flowchart Explaining How a Vendor Finance Deal Works for a UK Supplier - From Start To Finish

Written by: Al Shea

Article Overview: This is a behind the scenes flowchart designed to let you as the UK business owner better understand the typical processes involved when writing a finance deal via your vendor finance scheme. It will be useful for any business owner who has not yet considered offering finance options to their customers because they didn't understand the process involved, or for those business owners currently considering offering finance options but wanting a better understanding of how things would work.

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Typical Flowchart Explaining How a Vendor Finance Deal Works for a UK Supplier - From Start To Finish

THE STEPS INVOLVED IN A FINANCE DEAL - FROM THE FINANCE QUOTATION RIGHT THROUGH TO THE SUPPLIER BEING PAID

Customer would like to buy equipment from Spplier on finance.

Supplier provides quote using lease calculator (provided by the Broker) and agrees final finance figures with Customer

Customer wishes to proceed with the deal

Supplier sendstheir Brokerthe Customer details, equipment details, and the agreed figures to formally propose

the deal for underwriting and credit acceptance by the Broker

The Brokerputs the deal into underwriting with the most appropriate funder

(should further info be required,the Broker would normallycontact the Customer directly to secure the

required information to aid with the acceptance)

The Deal is approved (or rejected) typically within 24-48 hours of being proposed by the Broker.

The final figures will be confirmed to the Supplier by the Broker (should there be any changes), and paperwork will be raised

and sent out to the Customer bythe Brokerfor signing - the Supplier should not need to raise any finance paperwork.

Customer receives lease agreement from the Broker by post or email.

Paperwork is signed and returned tothe Brokerby the Customer.

The Brokerreceives the signed paperwork from the Customer and informs the Supplier everything is in order by raising and sending

the Supplier an Invoice Request. This details which Funder the Supplier should invoice and how the invoice should be laid out.

The Supplier thencommences work on the Customer order.

The Supplier raises their invoice and sends it direct tothe Broker

(not normallythe funder they are invoicing) to keep on file with the signed Customer paperwork

until installationhas beencompleted by the Supplier.

The Supplier confirms tothe Brokerthat installation at the Customers officeis complete.

The Broker thensends off all paperwork & invoice to the Funder for processing and payout.

Funder receives the paperwork & invoice, conducts a phone-check with the Customer to confirm installation is complete,

and then makes payment to the Supplier via cheque or BACS immediately thereafter.

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  Equipment Suppliers - Can You Offer Finance Options To Your Customers?
  When buying a business you can ask for vendor finance
  Software Finance for Businesses in the UK
  Close Those Deals With Value Sharing

Home > Small-Business-Loans > Al Shea > Typical Flowchart Explaining How a Vendor Finance Deal Works for a UK Supplier From Start To Finish
Article Tags: business owner, business owners, finance deal, finance options, finance scheme, flowchart, typical processes, uk business, vendor finance

About the Author: Al Shea
RSS for Al's articles - Visit Al's website

Al Shea started out as a Business Finance Broker in 2002, helping UK businesses source finance for their equipment and asset requirements. Since then he has also gone on to create the popular Consumer Finance website - http://www.HonestJohnny.co.uk - which covers all the latest loans, insurance, credit card, investment, and pension deals currently available in the UK. The website also covers business finance and gives you direct access to Al's existing UK funding lines offering flexible asset finance for your UK business. For a quote go to http://www.HonestJohnny.co.uk/businessfinance

Click here to visit Al's website
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More from Al Shea
Leasing Equipment versus Outright Purchase New 2010 Example
Typical Flowchart Explaining How a Vendor Finance Deal Works for a UK Supplier From Start To Finish
What is an Operating Lease and who uses them
Vendor Finance Schemes Benefits To Your Sales Team Quick Guide
International Asset Finance The Options Available To Your Business


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