What is vendor financing? 

A financing arrangement where the seller (vendor) provides a loan or deferred payment terms to the buyer to facilitate the purchase of their products or services via a financial institution. The vendor gets paid in full upfront while the buyer pays the financial institution back over time. 

There can be multiple parties involved in these arrangements including the buyer, seller, financing provider, broker, credit facility, potential reseller partner, but the financing provider typically keeps the experience simple for the vendor and buyer and manages any additional parties separately. 

Capchase Pay is a vendor financing solution that allows software and tech-enabled hardware vendors to offer flexible payment terms to their customers. Integrating seamlessly into the checkout flow, Capchase Pay allows customers to select a payment plan at checkout. Capchase then manages billing and collections on the vendor’s behalf while paying the vendor full contract value upfront. 

This allows customers to pay for their annual or multi-year contracts in manageable installments, while vendors are able to invest in growth, marketing, and development without waiting for every installment to be paid.