Vendor Finance

Vendor finance is a financing programme where a manufacturer or distributor arranges for a third-party financier to lend money to their customers, enabling those customers to purchase products on deferred payment terms. The vendor receives immediate payment from the financier; the customer repays the financier over an agreed term.

Trade credit is the vendor's own balance sheet being used — you invoice a customer and wait 30–90 days for payment, carrying the credit risk yourself. Vendor finance involves a third-party financier: the financier pays you immediately and collects from the customer over time, taking on the customer credit risk (or sharing it with you).

Vendor finance works best for: capital equipment (machinery, vehicles, technology), where the purchase price is large enough to justify a formal financing facility; inventory and raw materials for regular business customers; and any B2B product where customers benefit from extended payment terms.

A white-label programme presents the financing under the manufacturer's brand — the customer sees 'XYZ Finance' rather than the underlying bank or lender. This creates a seamless brand experience and can improve customer adoption of the financing option.

In a fully non-recourse programme, the financier absorbs all credit risk — the vendor is paid regardless of whether the customer repays. In a recourse programme, the vendor retains some exposure if the customer defaults. Non-recourse programmes charge higher fees; recourse programmes are cheaper.

Most formal bank-based vendor finance programmes require minimum annual programme volumes of $5M+. Fintech and specialist lenders can work with smaller volumes. OAKRG matches vendors with the right programme size and structure for their customer base.

Yes. OAKRG designs vendor finance programmes and connects manufacturers and distributors with the right financiers — banks, specialist lenders, and fintech platforms — for B2B and B2C vendor lending programmes.