How Do Equipment Suppliers Offer Finance at the Point of Sale?
Equipment Finance
Point-of-sale finance · Dealer programs · For equipment suppliers
A practical guide for Australian equipment suppliers and dealers on offering business customers finance at the quote: the four setup models, what it can cost you, website and checkout options, who owns the customer relationship, how and when you get paid, who carries the risk, the credit licence line, and what happens when a deal changes or goes wrong.
Quick Answer
An equipment supplier can offer point-of-sale finance by partnering with a financier or broker rather than lending its own money. The customer applies and is assessed by the finance provider, and the supplier is normally paid at settlement once the provider's conditions are met. Common models are broker referral, direct lender program, white-label finance and manufacturer captive finance.
Also called: dealer finance program, vendor finance program, sales aid finance or white-label equipment finance. Here, vendor finance means finance a supplier offers through a lender when it sells equipment, not a seller lending money to the buyer of a business or property.
How do equipment suppliers offer finance at the point of sale?
An equipment supplier offers finance at the point of sale by working with a financier, directly or through a broker, so the customer can apply when it receives the quote. There are usually three parties: the supplier sells the equipment, the financier lends to or leases to the customer, and the financier pays the supplier when settlement conditions are met. Depending on the program and asset, those conditions can include signed finance documents, a verified invoice, serial numbers and evidence of delivery or customer acceptance. The supplier is not automatically the lender simply because it introduces the finance option.
There are four common ways to set that up, and they differ on who the customer signs with, who wears the loss if the customer stops paying, and which kind of supplier each one suits. The table sets them out. For how the finance works from the buyer's side, see our equipment finance guide; for the term in plain words, see what asset finance means; and for the wider category, how asset finance works in Australia.
| Setup | Who the customer signs with | Who carries the credit risk | Best fit when | The supplier's role |
|---|---|---|---|---|
| Broker referral | The financier the broker places the deal with | The financier, unless the supplier gives recourse | You sell to a mix of customers and want several lenders behind one relationship | Introduce the customer, then supply |
| Lender vendor or dealer program | The program's financier | The financier, unless the program agreement includes recourse or buy-back | Most of your customers fit one lender's credit policy and you want one portal | Quote and lodge through the program |
| White-label or private-label program | The financier, under the supplier's brand | Set by the program agreement | You want the finance offer under your own brand and can support the customer through it | Brand, quote and support the customer |
| Manufacturer captive finance | The manufacturer's finance company | The manufacturer's group | You are a dealer for a manufacturer that runs its own finance company | Sell under the manufacturer's offers |
Basis: Switchboard broker explanation, not a cited statistic. Program terms vary; the program agreement decides.
There is a fifth route: a supplier can become a broker or a credit representative itself. That brings licensing and compliance obligations of its own; see the credit licence question for suppliers. If you would rather a broker place the deals, we arrange equipment finance for your customers.
Some people call this vendor finance, but the same words also describe a seller lending money to the buyer of a business or property, which is a different arrangement covered in seller finance when buying a business.
Why do equipment suppliers offer finance at the quote?
Suppliers offer finance at the quote so a customer can compare the upfront equipment price with a financed repayment while the purchase is still being considered. In a typical third-party program, the financier pays the supplier at settlement rather than the supplier carrying the customer on its own trade terms. In a genuinely non-recourse supplier arrangement, the supplier does not agree to cover the financier's customer-credit loss, although warranty, delivery and any separate buy-back obligations can still remain with the supplier.
A supplier of commercial coffee machines and cafe fitouts finds that some customers want to compare the cash price with a monthly repayment. It sets up a broker referral so a finance option sits on every quote. The financier assesses each customer, and the supplier is paid at settlement after the financier's documentation and asset-verification conditions are met. In this illustrative non-recourse referral, the supplier has not agreed to absorb the financier's customer-credit loss.
Illustrative only. Not a statement about any lender or program.
Can an equipment supplier put finance on its website, quote or checkout?
Yes. An equipment supplier can put a finance entry point on a product page, digital quote, invoice or checkout when its finance partner supports embedded or white-label finance. The customer still applies for finance and remains subject to the financier's assessment and approval; showing an indicative repayment is not the same as approving the customer.
The right setup depends on how much of the finance journey you want inside your own sales process. A simple referral link sends the customer to a broker or financier. A repayment widget can show an indicative weekly or monthly figure before the customer applies. An embedded application keeps more of the journey on the supplier's website, while a white-label portal can carry the supplier's branding even though the finance contract is still with the financier.
| Method | What the customer sees | What the supplier does | Main point to check |
|---|---|---|---|
| Referral link | A link or button to the broker or financier's application | Introduces the customer and keeps selling the equipment | Who contacts the customer and how referral status is reported back |
| Repayment calculator or widget | An indicative repayment beside the equipment price | Adds the approved widget or calculator to the website or quote process | How the estimate is calculated, qualified and kept current |
| Embedded application | An application flow inside the supplier's digital journey | Integrates the finance provider's form or application component | Privacy, data handling, disclosures and what happens if the customer leaves the flow |
| White-label portal | A supplier-branded finance journey backed by a financier or broker | Uses its own branding while the finance provider handles the regulated finance process | Whose brand, customer data and communications appear at each stage |
Can I advertise a weekly or monthly repayment beside the equipment price?
You can show a repayment estimate when the program is designed for it, but the estimate should sit beside the full equipment price and be clearly qualified as indicative and subject to finance approval. Do not make the repayment look like the equipment price, promise approval, or let an old calculator keep displaying figures that no longer match the finance partner's current assumptions.
Should my sales team collect the customer's finance documents?
Usually the cleaner process is for sensitive finance documents to go through the broker or financier's approved channel rather than through ordinary supplier email. Before launch, agree exactly what information your staff collect, what is passed to the finance partner, what the supplier can see in a portal, how consent is recorded and who responds to privacy or complaint questions.
Who carries the credit risk when a supplier offers finance?
In many third-party point-of-sale programs, the financier carries the customer-credit risk unless the supplier has agreed to share it through recourse, a first-loss arrangement or a buy-back obligation. The supplier's exposure is therefore set by the program agreement, while the customer's liability is set by the finance contract it signs with the financier.
Whether the supplier wears any loss is set by the program agreement, not the brochure. A recourse or buy-back promise shifts some of the loss back to the supplier, and a financier may accept customers it would otherwise decline when the supplier shares the risk. Read the program agreement before you sign it.
| Arrangement | What the supplier promises | What happens on default |
|---|---|---|
| Non-recourse | No promise to cover the financier's loss | The financier enforces against the customer and the equipment; the supplier is not called on |
| Limited recourse (first loss or capped) | To cover part of a loss, such as the first loss or up to an agreed cap | The financier enforces against the customer and the equipment, and may call on the supplier up to the agreed limit |
| Full recourse | To cover the financier's whole loss | The financier may recover its loss from the supplier as well as enforcing against the customer |
| Repurchase or buy-back undertaking | To buy back repossessed equipment on agreed terms | The financier repossesses the equipment and the supplier takes it back under the undertaking |
Sources: Federal Register of Legislation, Personal Property Securities Act 2009 (Cth), compilation of 14 October 2024, sections 123, 128 and 130, read 2 October 2026. The supplier column is a broker explanation; the program agreement decides the supplier's exposure.
Whether a customer owes a shortfall after repossessed equipment is sold depends on the finance contract and the amount recovered. Under many secured equipment-finance contracts, sale proceeds are applied against the amount owing and the financier may pursue any remaining contractual shortfall. The supplier's non-recourse status does not itself make the customer's finance non-recourse.
Does non-recourse mean the customer owes nothing more?
No. In a supplier program, non-recourse describes whether the financier can push a customer-credit loss back to the supplier; it does not by itself erase the customer's liability. Under the Personal Property Securities Act 2009, a secured party may seize collateral (section 123, Secured party may seize collateral) and dispose of it (section 128, Secured party may dispose of collateral), generally after notice (section 130, Notice of disposal of collateral). What remains owing after sale depends on the customer's finance contract and the amount recovered from the equipment.
The financier records its interest on the Personal Property Securities Register, and where a contract ends in a balloon, the residual value at the end of the term is part of what the customer owes.
What is dealer subvention, and who pays for a 0% offer?
Dealer subvention is one way a manufacturer or supplier can subsidise a customer's finance rate, so a 0% offer does not mean the funding has no economic cost. Depending on the program, that cost can be funded through subvention, reflected in the equipment price or supplier margin, or paired with a smaller cash discount or different commercial terms.
- Subvention. The manufacturer or supplier pays the financier an amount that funds the lower rate the customer sees.
- Where the cost lands. In the equipment price, in the supplier's margin, or in a smaller discount for a customer who pays cash.
- How you advertise it. In its guide to advertising and selling, the ACCC says you must not make false or misleading claims and that when you present prices you should state the total price, so a finance offer should not obscure what the customer pays overall.
- Commissions and referral fees. They exist in many programs, and how they are disclosed depends on the arrangement and on who the customer is.
The buyer's side of the same offer, and what a customer should ask before taking it, is in how a dealer finance offer looks to the buyer.
Does offering finance cost the supplier anything?
There is no single supplier cost. Some broker or lender programs can have no setup or ongoing supplier fee, while other arrangements can involve subvention, technology or integration costs, reduced cash discounts, staff administration, recourse, first-loss exposure or a buy-back commitment. Ask the finance partner in writing what it charges you, what it pays you, what happens if a deal does not settle or is later unwound, and what you are being asked to guarantee before you put the program on a quote.
How should a supplier show finance on a quote?
Show finance as an option beside the full price, subject to the financier's approval, and never in place of the price. A quote that leads with a repayment should still state the total price, and it should not promise approval, a rate or a repayment that the financier has not yet set. Point the customer to the financier or broker for its actual figures.
Regulators take finance promotions seriously. In July 2026 the Federal Court ordered a national retailer and its finance partner to pay combined penalties of $55 million over an interest-free campaign that ASIC said masked the credit card and fees customers were taking on; ASIC media release 26-171MR, 28 July 2026, sets out the case. That was consumer advertising, but the lesson carries to a business quote: show what the customer is signing up to and what it costs. ASIC updated Regulatory Guide 234 on advertising financial products and services, including credit, on 9 June 2026.
A machinery dealer runs a manufacturer-backed promotion with a subsidised rate on new units. Working through the program, the dealer learns that the cost sits in a smaller cash discount and in the program's subvention charge. The program agreement also includes a buy-back if repossessed units come back, which the dealer prices into its decision to join.
Illustrative only. Not a statement about any manufacturer, lender or program.
Does an equipment supplier need a credit licence to offer finance?
An equipment supplier does not automatically need an Australian credit licence merely because it introduces a business customer to business-purpose equipment finance. The National Credit Act generally applies to regulated consumer credit, so the customer's legal status, the real purpose of the credit and the activity the supplier performs all matter. ASIC's INFO 101, Does the credit legislation apply? says predominantly means more than a 50% consumer component and explains that loans to companies are not subject to the credit legislation. Consumer sales, credit the supplier extends itself, and arrangements relying on a referral or representative exemption need to be checked on their own facts. This guide covers business-purpose equipment only.
What can equipment sales staff say before the finance hand-off?
For business-purpose equipment finance, the cleanest sales role is to explain that finance is available, use only the finance partner's approved indicative tools, and hand the customer to the broker or financier for any product recommendation, credit assessment or application assistance. If consumer credit may be involved, ASIC's Regulatory Guide 203 says credit assistance includes suggesting that a consumer apply for a particular credit contract with a particular credit provider, or assisting the consumer to apply. ASIC also describes the consumer referral exemption as narrow and conditional, including disclosure of any benefit or commission received for the referral.
| Sales conversation | Practical boundary | Safer process |
|---|---|---|
| "Finance is available, subject to approval" | General availability statement | Use the approved wording supplied by the broker or financier |
| Showing an indicative repayment | Only use an approved calculator or quote tool and keep the full equipment price visible | Label the figure as indicative and subject to assessment and approval |
| "This particular finance product is the best one for you" | Do not let ordinary sales staff make a customer-specific credit recommendation | Hand the finance conversation to the authorised broker or financier |
| Helping with a consumer credit application | Can amount to credit assistance where regulated consumer credit is involved | Use the finance provider's approved referral process and legal advice on the exact model |
| Telling the customer what to put as the loan purpose | Do not coach, pre-fill or alter the customer's purpose declaration | The customer states the real purpose directly to the finance provider |
Sources: ASIC, Regulatory Guide 203, Do I need a credit licence?, current version read 2 October 2026; ASIC, INFO 101, Does the credit legislation apply?, read 2 October 2026. This is general information, not legal advice.
- The declaration is not a shield. Under the National Credit Code, section 13, Presumptions relating to application of Code, a business purpose declaration is ineffective if the credit provider knew or had reason to believe, or would have known after reasonable inquiries, that the credit was really for a consumer purpose. Inducing a customer to make a false or misleading declaration is an offence.
- The courts apply it. In 2025 the Federal Court found two lenders could not simply rely on a business purpose declaration and had to make reasonable inquiries about the purpose; ASIC's media release on the decision sets out the findings.
- Never fill in or coach the declaration. The customer completes it with the financier, in its own words.
- Unfair contract terms still apply. For a standard-form contract made, renewed or varied on or after 9 November 2023, ASIC says the small business protections cover a contract for a financial product or service where the business employs fewer than 100 people when the contract is signed, or had turnover of less than $10,000,000 in the last income year, and the upfront price, disregarding interest, is no more than $5,000,000. Older contracts were covered under narrower thresholds. See ASIC's unfair contract term protections for small businesses.
Consumer credit carries responsible lending obligations that business-purpose credit does not, which is why the purpose test matters so much.
What about consumer customers or credit you give yourself?
Consumer credit is different. ASIC lists referring a consumer to a credit licensee among the activities covered by licensing exemptions, but says many exemptions apply only in certain circumstances and that you should make sure you meet each of the requirements. ASIC's Regulatory Guide 203, Do I need a credit licence? sets out the referral conditions, which include disclosing any benefit, such as a commission, that you receive for the referral.
A supplier that extends credit itself, through its own payment plans or extended terms, is in a different position from one that refers. Whether your arrangement needs a licence is a question for your solicitor. If you want to understand how a referral to a broker works in practice, contact us about how a referral works.
What does the customer see and sign?
In a third-party equipment-finance program, the customer signs its finance contract with the financier rather than the equipment supplier. Depending on the structure, that contract may be a chattel mortgage, commercial hire purchase, finance lease or rental, and the transaction then moves from quote and approval through settlement, equipment release and PPSR registration.
- Quote with a finance option. The supplier's quote shows the equipment, the full price and the option to finance it.
- Application in the customer's trading entity. The company, trust or sole trader that will use the equipment applies.
- Credit check. The financier checks the business and its directors.
- Approval and documents. The customer signs the finance documents, including the business purpose declaration.
- Asset verification and any required delivery evidence. The financier may require serial numbers, inspection, delivery confirmation or a customer acceptance step depending on the asset and program. Never ask a customer to confirm delivery or acceptance before that statement is true.
- Settlement pays the supplier. Once the financier's conditions are cleared, it pays the supplier or seller under the approved transaction.
- The financier registers its interest on the PPSR. That is the financier's job, but it matters to a supplier relying on retention of title. For a company customer, the PPSR timing rules say to register within 20 working days after the security agreement is signed, or more than six months before the company goes into administration or liquidation, or the interest can be lost if the company becomes insolvent. A lease or bailment for a term of more than two years by someone regularly in the business of leasing is itself a PPS lease; indefinite and extendable terms can also be caught.
How fast does the supplier get paid?
The supplier is paid at settlement after the finance provider's outstanding conditions are cleared, so there is no single number of days that applies to every program. Common delays are a customer document still outstanding, an invoice in the wrong entity, bank details that have not been verified, a serial number or asset description that does not match the approval, a changed deposit or price, or delivery evidence that is still required. No broker or financier can sensibly promise a settlement date before it knows what conditions remain. How invoice upload, settlement and registration run step by step is in invoice upload, settlement and PPSR registration.
What protects the supplier if it delivers before it is paid?
A retention of title clause in your written terms, registered on the PPSR. The PPSR says supplying goods on written credit terms, where the goods do not belong to the customer until they are paid for, generally creates a security interest you can register, and that if you do not register it you are an unsecured creditor if the customer cannot pay. See the PPSR page on retention of title arrangements, and have your solicitor check how your terms sit alongside the financier's interest at settlement.
| What is holding settlement up? | What usually has to happen next? | Who normally acts? |
|---|---|---|
| Invoice is in the wrong entity or amount | Correct the invoice or have the changed transaction approved | Supplier, customer and broker or financier |
| Supplier bank details are not verified | Complete the finance provider's independent payee verification | Supplier and financier |
| Serial number or asset description does not match | Verify the actual equipment and update the approval if required | Supplier and broker or financier |
| Customer documents or conditions are incomplete | Provide the missing information or satisfy the outstanding condition | Customer and finance provider |
| Delivery or acceptance evidence is required | Provide the evidence only after the required event has genuinely occurred | Supplier and customer |
What if the equipment, price or order changes after finance approval?
Tell the broker or financier before changing the funded transaction. A different model, serial number, supplier, price, deposit, trade-in, delivery arrangement, bundled service or partial delivery can mean the approval no longer matches what is being settled. If only part of an order is ready, do not assume the financier can simply pay a matching proportion of the invoice. The finance provider may need a corrected invoice, a variation, separate settlement instructions or a fresh credit or asset check before it pays anyone.
What if the equipment sale is cancelled or unwound after the supplier has been paid?
Do not assume the finance contract disappears automatically. The supplier, customer and financier need to reconcile the cancellation under the sale contract, finance contract and program agreement. Depending on the facts, settled money may need to be returned, the finance documents may need to be cancelled or varied, and any PPSR registration may need to be dealt with. Agree the unwind process with the finance partner before launching the program, not for the first time after a disputed sale.
Can freight, installation and software be included in the finance?
Costs tied to getting the equipment working, such as freight, delivery and installation, are often included in the amount financed, but software, training and service contracts are harder because they have little resale value, and each financier sets its own limits. Ask the financier what it will include before you quote one financed figure, and itemise those costs on the invoice so they match what is approved.
| Structure | Who owns the equipment during the term | PPSR position | At the end of the term |
|---|---|---|---|
| Chattel mortgage | The customer, from the start, with the financier holding security | The financier registers its security interest | The customer owns it free of the mortgage once the loan, including any balloon, is repaid |
| Commercial hire purchase | The financier, until the final instalment | The financier registers its interest | Ownership passes to the customer on the final instalment |
| Finance lease | The financier | The financier registers; a lease of more than two years by a regular lessor is a PPS lease | Depending on the lease, the customer pays the residual, re-leases or returns the equipment |
| Rental or operating lease | The financier or rental provider | Registered as a PPS lease where it meets the definition | The equipment is returned, upgraded or re-rented |
Sources: business.gov.au, Key financial terms, last updated 9 July 2024, read 2 October 2026; business.gov.au, Leasing or buying vehicles and equipment, last updated 23 October 2024, read 2 October 2026; PPSR, Leases, bailments and consignments, no date shown, read 2 October 2026; PPSR, PPSR timing rules, no date shown, read 2 October 2026.
business.gov.au describes a chattel mortgage as similar to hire purchase, although the business owns the asset from the start. It also says regular lease payments let a business budget for equipment over time, but it may end up paying more than it would buying upfront, and buying means it owns the equipment outright. The terms are in the glossary: chattel mortgage defined, finance lease defined and operating lease defined. How the structures compare for the buyer is in chattel mortgage, lease or hire purchase compared, and hire purchase on its own is in our commercial hire purchase guide. How GST on the equipment is treated under each is a question for the customer's accountant.
What happens if the customer defaults or the equipment is faulty?
A finance contract and an equipment supply contract can impose separate obligations, so a product fault does not automatically suspend the customer's finance repayments. The customer's rights against the supplier, and any rights affecting the finance contract, depend on the contracts and the law that applies to the transaction.
If the customer stops paying, the financier's remedies run against the customer and the equipment, as set out in the credit risk section above. A recourse or buy-back clause in the program agreement can bring the supplier back in.
If the equipment is faulty, consumer guarantees can apply even to a business purchase. The ACCC says a business purchase is covered if it costs less than $100,000 including GST, is commonly bought for personal, domestic or household use, or is a vehicle or trailer used mainly to transport goods on public roads, unless it is bought to resupply, to use or transform in production or manufacturing, or to repair or treat other goods. That summary is from the ACCC's consumer rights and guarantees page, last updated 28 August 2026, read 2 October 2026; whether a guarantee applies to a given sale is a question for your solicitor.
For the supplier, warranty and service obligations keep running regardless of who financed the sale. Keep the tax invoice, serial numbers and delivery records consistent, because the financier and the customer both rely on them. Used or aged stock raises its own questions for the financier; see financing used and aged equipment.
How do you choose a point-of-sale finance partner?
Choose the finance partner by matching the program to your customers, assets and sales process, not by looking at the headline rate alone. A broker-run program can give access to several lenders through one relationship, while a direct lender program gives one credit policy and often one portal. In either case, check supplier costs, recourse, customer communication, data handling, reporting, embedded-finance capability, settlement controls and what happens when a deal is declined, changed or unwound.
| Question | Broker-run program | Direct lender program |
|---|---|---|
| How many lenders sit behind it? | Several, through one relationship | One |
| How is each deal matched? | To the lender whose policy fits it | Against one credit policy and one portal |
| What if a customer falls outside one lender's policy? | The deal can go to another lender | The deal is declined rather than placed elsewhere |
| Which is faster? | Depends on the lender the deal is placed with and what conditions remain | Can be simpler when the deal sits cleanly inside that lender's policy |
| Who handles customer finance communication? | The broker usually manages the finance conversation and lender placement | The lender or its vendor-program team usually manages it |
| Can finance be embedded on the supplier's website? | Depends on the broker's platform and integration options | Depends on the lender program and its technology |
| What can the supplier see after referral? | Depends on the broker's status reporting or partner portal | Depends on the lender's vendor portal and privacy settings |
| Can the supplier be paid a referral fee? | Depends on the commercial and compliance arrangement | Depends on the program agreement |
| Who carries supplier recourse or buy-back risk? | Only if the supplier agrees to it in the arrangement | Set by the direct program agreement |
Basis: Switchboard broker explanation, not a cited statistic. Program terms vary.
Do not assume that white-label means the supplier owns the customer, or that embedded means the supplier receives the customer's full application data. Customer contact, marketing rights, status visibility, data access and post-decline follow-up all come from the actual program agreement and privacy design.
What are the steps to start offering finance to customers?
- Pick a setup. A broker referral, a lender program, a white-label program or manufacturer captive finance.
- Read the program agreement. Check for recourse or buy-back, and what you are paid or charged, before you sign.
- Get accredited. The financier checks your ABN, trading history, invoicing and the equipment you sell.
- Put the finance option on every quote. Show it beside the full price, subject to approval. The customer applies in its own trading entity and completes its own business purpose declaration.
- Settle on matching paperwork. The invoice, serial number and delivery sign-off must agree before the financier pays you.
What do financiers check before accrediting a supplier?
- ABN and trading history. How long the supplier has traded, and in what entity.
- How the supplier sells and invoices. Whether quotes and invoices are clear about the equipment and the price.
- The asset types and their resale market. What the financier could sell the equipment for if it had to.
- How serial numbers and delivery are verified. Who confirms the equipment exists and was delivered.
Financiers also look for controls against fraud and double-financing:
- A PPSR serial number search before settlement.
- The invoice, the serial number and the delivery sign-off all matching.
- No settlement on an invoice that has not been verified.
What a lender looks for on a file for manufactured equipment is set out in what a lender checks on a manufacturer equipment file.
Does the finance company take over my customer relationship?
Not necessarily, but you should settle the boundaries before the first referral. In a basic referral, the broker or financier usually contacts the customer directly about finance. In a white-label or embedded program, more of that journey can stay under the supplier's brand. Ask who owns each customer touchpoint, whether the finance provider can market unrelated products, what the supplier can see in the deal portal, how complaints are handed over and what happens to the customer's data if the finance application is declined.
Can an equipment supplier earn a referral fee or commission?
A finance program may pay an approved supplier a referral fee or commission, but the payment and disclosure rules depend on the customer, the credit activity and the structure being used. The agreement should state who pays the fee, when it is earned, whether it is clawed back if a deal does not settle or is reversed, what the customer must be told and what the supplier is allowed to say or do before handing the customer to the finance provider.
What should be in the supplier's finance program agreement?
At minimum, the agreement should make the supplier economics and responsibilities visible. Do not sign a program because the customer rate looks attractive while leaving the supplier's recourse, customer-data rights or unwind obligations buried in another schedule.
- Supplier charges and payments. Setup fees, technology fees, subvention, referral income and any clawback.
- Recourse, first loss and buy-back. Whether the supplier covers any first loss, shortfall, repossessed equipment, minimum resale value or repurchase obligation, and exactly what event triggers that liability.
- Customer ownership and communication. Who contacts the customer, whose brand appears and whether cross-selling is permitted.
- Data and privacy. What information the supplier collects, sends, receives and stores.
- Approval and quote controls. What staff can say about rates, repayments and approval before the financier decides.
- Settlement controls. Invoice verification, bank-account verification, asset identifiers and required delivery evidence.
- Changes, cancellations and returns. What happens if the model, price, supplier, deposit or order changes, only part of an order is delivered, goods are returned, a sale is cancelled, or settled funds have to be unwound.
- Warranty and product-fault interaction. Whether a product return, warranty claim or disputed delivery can trigger a payment hold, clawback or repurchase obligation under the finance program.
- Clawbacks. Whether referral income, subsidies or other supplier payments can be reversed if a transaction cancels, unwinds, defaults early or breaches the program rules.
- Complaints and disputes. Which party handles a finance complaint, a product complaint and a mixed dispute.
- Termination. What happens to open applications, customer data and website widgets if the partnership ends.
What happens if the financier declines your customer?
In a direct lender program, a decline usually ends the finance on that deal. Through a broker, the deal can be looked at against other lenders' policies, though another lender may decline it too. Either way, the decision is the financier's, the customer can still buy on your normal terms, and you should not change the paperwork or the business purpose declaration to get a deal through.
The financier's view also depends on what you sell. Sector guides cover financing imported business equipment, hospitality and kitchen equipment, earthmoving machinery and farm machinery and equipment.
An IT reseller sells hardware, software licences and a support contract as one package. Financiers are cautious about the soft components, because software and support have little resale value. The reseller chooses a rental structure through a program that accepts mixed bundles, and checks that the customer's agreement separates the support contract from the finance. How lenders read this kind of deal is in IT and office equipment finance.
Illustrative only. Not a statement about any lender or program.
What should a supplier track after launching a finance program?
Track the whole finance funnel, not just applications or approvals. A useful supplier dashboard shows how many customers see or ask for finance, how many start an application, how many abandon it, how many are approved, how many approved deals settle, how long supplier payment takes, why deals fall out, whether customers return, and whether financed sales are genuinely incremental rather than customers who would have bought anyway.
| Measure | What it tells you | What to investigate if it looks weak |
|---|---|---|
| Finance enquiries from quotes | Whether customers are noticing and using the option | Placement on quotes, staff confidence and whether the option is explained clearly |
| Application starts and abandonment | Whether interested customers are completing the finance journey | Form length, document requests, mobile usability, hand-off confusion and follow-up ownership |
| Application to approval | How well the program's credit appetite matches your customer base | Customer profile, lender fit, asset type and whether another lender path is needed |
| Approval to settlement | Whether approved deals are actually turning into paid equipment sales | Conditions, invoice mismatch, deposits, customer drop-off and delivery timing |
| Time from settlement-ready to supplier paid | Whether operational hand-offs are working | Payee verification, documentation, asset identifiers and internal response time |
| Decline and fallout reasons | Where the program does not fit your customers or equipment | Credit policy, business age, asset age, soft costs, private sales or documentation |
| Customer complaints and hand-off issues | Whether the finance journey is protecting the supplier relationship | Communication ownership, disclosures, privacy, response times and after-sales boundaries |
| Repeat financed customers | Whether the finance option is supporting ongoing supplier relationships | Customer experience, renewal or upgrade process and whether the partner retains the customer appropriately |
| Supplier income and program cost | The direct economics of referral income, subvention, technology or administration costs | Clawbacks, hidden program charges and whether finance cost is eroding equipment margin |
| Incremental financed sales | Whether finance appears to help create or preserve sales rather than only change how existing buyers pay | Compare similar quotes, lost-sale reasons and customer feedback rather than assuming every financed sale was caused by finance |
A useful program review asks one question for every lost deal: was the problem the customer, the asset, the financier's policy, the paperwork, the sales hand-off or the finance program itself? Also separate "finance used" from "sale caused by finance". A financed sale is not automatically an incremental sale. The supplier needs its own quote and lost-sale data, alongside the broker or lender dashboard, to make that judgement.
How does Switchboard work with equipment suppliers?
On business-purpose equipment deals, Switchboard can act as the broker between the supplier, customer and lender panel. The supplier introduces the customer, we work through the finance requirements and lender fit, and the selected financier pays the supplier when its settlement conditions are satisfied. We handle the finance conversation; the supplier remains responsible for the equipment sale, delivery and after-sales obligations.
The finance we arrange for business customers is set out in asset finance through a broker, and our wider guides for owners are on the business owners finance hub. If you are a supplier and want to discuss introducing customers, talk to us about introducing customers.
What should a supplier have ready before the first conversation?
- Your trading details. Your ABN, trading entity and how long you have traded.
- What you sell. The equipment types, whether new or used, and the usual range of quote values.
- Who you sell to. The kinds of businesses that buy from you, and whether any customers buy for personal use.
- How you quote, invoice and deliver. A sample quote and invoice, and who signs off delivery.
- Any existing program. The agreement for any finance program you already use, so recourse and buy-back terms can be read.
From the broker's desk, indicative
Based on business-purpose equipment files across our asset panel, as of October 2026. What we see when a supplier introduces a customer:
- Supplier-introduced deals settle cleanest when the quote, the serial number and the delivery sign-off all match.
- When a supplier-introduced deal stalls, it is usually the customer's file (trading history, tax position) or a soft or custom asset with a thin resale market, rarely the supplier.
Not a quote, an offer or an approval indication; appetite moves with lenders and asset types. Not financial advice.
An equipment supplier can offer finance without becoming the lender by partnering with a broker, lender or manufacturer finance program. The supplier is normally paid when settlement conditions are cleared, while the program agreement decides whether the supplier has recourse, buy-back or other exposure. The strongest setup also defines supplier costs, customer ownership, data handling, quote controls, settlement evidence, decline handling and what happens when an order changes or is cancelled.
Key takeaway: read the program agreement for risk and economics, show finance beside the full equipment price, keep the approved transaction and invoice matching, let the finance provider handle the regulated finance process, and decide who owns each customer touchpoint before the first referral.Frequently asked questions
In equipment sales, vendor financing means a supplier offers finance through a financier when it sells equipment, rather than lending its own money. The supplier sells, the financier lends to or leases to the customer, and the financier pays the supplier at settlement. See how suppliers offer finance at the point of sale.
Dealer financing means finance arranged at the dealer or supplier but provided by a financier or the manufacturer's finance arm. The customer signs its contract with the financier, not the dealer. See the four ways suppliers set it up and equipment finance explained.
You offer financing to customers by choosing a setup (a broker referral, a lender program, a white-label program or manufacturer captive finance), getting accredited with the financier, and building the finance option into your quote. See the steps to start offering finance.
A supplier can offer a finance option through a broker or financier, but whether licensing or an exemption applies depends on the customer, the real purpose of the credit and the activity the supplier performs. Consumer credit and credit the supplier extends itself are different. See whether a supplier needs a credit licence.
In a point-of-sale program, recourse means the supplier agrees to cover some or all of a financier loss or another defined exposure, while non-recourse means that supplier obligation is not included. Either way, the customer stays liable under its own finance contract. See who carries the credit risk.
Yes. Where the finance partner supports it, a supplier can add a referral link, repayment widget, embedded application or white-label finance journey to a website, quote or checkout. The customer still applies for finance and remains subject to the financier's assessment. See ways to embed finance in the sales process.
Generally, anyone who engages in consumer credit activities needs an Australian credit licence, unless an exemption applies or they act as a licensee's representative. Business-purpose credit is generally outside the National Credit Act. This is not legal advice; see the credit licence question for equipment suppliers and what responsible lending covers.
A supplier may be paid a referral fee or commission under an approved partner arrangement, but the payment and disclosure requirements depend on the customer, the activity and the program structure. The agreement should state when the fee is earned, any clawback and what the customer must be told. See supplier referral fees and program terms.
A subvention loan is finance where the supplier or manufacturer pays the financier to lower the customer's rate. The cost usually sits in the price, the supplier's margin or a smaller cash discount. See how dealer subvention works.
A useful supplier finance dashboard should show referred applications by status, approvals, settlements, actionable outstanding conditions, fallout or decline categories at an appropriate level, supplier-payment status and funnel trends, without exposing customer information the supplier has no reason or permission to receive. See what to measure after launching a finance program.
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