What is sales aid finance?

The flow is predictable and repeatable. The sales rep quotes a finance option alongside the cash price, using point-of-sale quoting tools, a monthly payment table or an online calculator. The customer applies in store, online or on a tablet, and the lender or its broker partner runs ID, credit and anti-money laundering checks. Conditional approval follows, often quickly for small-ticket deals, and the finance documents are signed by the customer and the lender; the vendor may sign a vendor-dealer agreement.

At settlement the lender pays the vendor the agreed amount less any fees, and the vendor delivers the asset or service. From then on the lender manages the repayments and any arrears, while the vendor keeps the relationship for servicing, upgrades and referrals. Each party has a clear role: the vendor sells and documents the sale, the lender underwrites, settles and handles disclosures, and the customer pays the instalments and takes up any end-of-term options.

The customer's cost is made up of the interest or factor rate (factor rates are common in short-term merchant finance; an APR equivalent shows the true cost), establishment fees, a residual or balloon on leases, early termination and default fees, merchant or processing fees, and pass-through costs such as valuation, delivery or insurance. Good practice is to show the APR equivalent next to the monthly repayment.

Tax follows the structure. On a sale, GST is generally payable at settlement; on a lease it is usually payable on each instalment, and GST-registered customers can claim the input tax credits either way. Ownership decides who claims depreciation. Lenders register their security on the PPSR, so serial numbers must be right. Credit licensing and responsible lending duties apply where the finance is consumer credit under the NCCP Act. For business-purpose equipment finance the obligations are general conduct, disclosure and unfair contract terms instead, so check whether the deal is for business or personal use, and who holds the licence.

Start with product fit. The provider needs leases, loans, rentals or deferred plans that match what your customers buy. Then look at how quickly applications are approved and settled, and at the support you get: staff training, quoting tools and integration with your point-of-sale system. Ask for a plain merchant fee schedule, the chargeback rules in writing, evidence of the provider's privacy, AML and PPSR procedures, and clear commission reconciliation.

Pilot pricing, volume discounts, faster settlement windows and written service levels for disputes and arrears are all negotiable. Watch for hidden fees, unclear APR disclosure, documentation that causes disputes and PPSR errors, and staff who cannot explain the product. Check any vendor recourse clause, because it can leave you carrying buy-back or chargeback obligations.

Run a short pilot at realistic volumes and compare the extra sales against the finance costs before a full rollout.