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Finance Agreement for Foreign Supplier | Vendor Financing Solution

Finance Agreement to Cater for Foreign Supplier: Resolving the Verification Issue

Introduction: We were recently approached by a customer in the vehicle recovery business who required funding for a specialized heavy tow recovery truck. Despite the customer having robust financials, the main hurdle was that the vehicle was based in Scandinavia. In this article, we will outline the challenges we faced in verifying the supplier and how we provided a tailored financing solution through a re-finance agreement.

Problem: When evaluating the funding request, we discovered that the dealer and the actual vehicle were not easily identifiable online. This posed a challenge as most of our funders required supplier verification before approving any facility. Additionally, it was unclear whether the vehicle had existing financing in its home country.

Solution: To address these obstacles, we devised a creative financing solution that leveraged the customer’s existing fleet of unencumbered recovery trucks. We offered a re-finance agreement, allowing us to raise 70% LTV (Loan-to-Value) funding against one of their existing trucks. This released equity from the customer’s own vehicle, providing the necessary resources to purchase the Scandinavian vehicle directly.

Finance Agreement

Execution: The customer personally traveled to Scandinavia to verify the asset and ensure the supplier’s authenticity. They handled all the necessary paperwork and made the payment directly for the vehicle. Afterward, they drove the newly acquired vehicle back home. To comply with local regulations, the vehicle was re-registered with Irish plates and promptly put into operation.

Conclusion: solution proved instrumental in overcoming the challenges of verifying a foreign supplier and securing funding for the specialized heavy tow recovery truck. By leveraging the customer’s existing assets, we provided a streamlined and efficient financing process. If you’re facing similar obstacles with supplier verification or cross-border transactions, our team at Vendor Finance can help you find innovative financing solutions.

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