How can an overseas manufacturer offer financing to customers in the U.S.?

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The U.S. is buying equipment from abroad at a record pace. U.S. imports of capital goods reached $1.1 trillion in 2025, the highest on record according to the Census Bureau, up $165.9 billion from 2024 according to the Bureau of Economic Analysis. Most of the businesses buying it expect to pay over time. In the Equipment Leasing & Finance Foundation’s most recent Horizon Report, 82% of businesses that acquired equipment or software in 2023 used at least one form of financing, and manufacturers and vendors supplied 17% of that financing volume.

So a manufacturer outside the U.S. that wants to win U.S. buyers usually needs a monthly payment option. The catch is that U.S. equipment finance runs on a structure built around a U.S. seller and equipment on U.S. soil. This guide explains that structure and the steps to put it in place. If you already sell through U.S. dealers, the dealer financing program setup guide covers their side of it.

Can U.S. buyers finance equipment shipped straight from an overseas factory?

Generally not through a U.S. equipment finance program. Picture how a financed sale works: the buyer signs, the equipment is delivered and accepted, and then the finance company pays the seller in full. A direct shipment from an overseas factory breaks that sequence in four places:

• There is no U.S. vendor to pay. The finance company pays the business that invoices the buyer. When that is an overseas parent company, the funder is sending money abroad for equipment that has not arrived yet.
• The collateral is not in the U.S. at funding. An equipment loan or lease is secured by the machine. Before customs clears it, the machine is on a ship or in a port, not at a U.S. business the funder can verify.
• Delivery and acceptance cannot be confirmed until the machine is installed and the buyer signs for it, which may be weeks after the overseas invoice.
• Warranty and service disputes land in another country. If the machine arrives damaged or does not perform, the buyer and the funder need a U.S. company to answer for it.

At Five West the equipment category is rarely the issue. Printers, presses, finishing equipment, and most other commercial equipment finance every day. The shipping point is what decides it.

What are the ways to sell on credit into the U.S.?

There are three routes, and only two of them work with U.S. equipment finance:

Many manufacturers do both over time: they start with one or two U.S. dealers, then open a U.S. subsidiary once volume justifies a warehouse and staff. Either way, financing attaches to the U.S. company that invoices the buyer.

How to offer financing to U.S. customers in six steps

1. Choose your U.S. route

If you already have U.S. dealers, the fastest path is to bring them into a financing program and support it from the factory side. If you sell direct to U.S. end users today, or you want control of pricing and the customer relationship, plan a U.S. subsidiary. The questions that decide it: how many machines you sell in the U.S. each year, whether you can hold stock there, and who will install and service the equipment.

2. Set up the U.S. entity (subsidiary route)

A foreign company can form a U.S. corporation or LLC in any state. The broad steps:

• Form the entity with a state, with a registered agent at a U.S. address. The Commerce Department’s SelectUSA investor guide walks through the common structures.
• Get a U.S. taxpayer ID (EIN) for the entity. Foreign-owned entities apply on IRS Form SS-4; the Form SS-4 instructions cover international applicants.
• Open a U.S. business bank account, so buyers and funders pay a U.S. company in U.S. dollars.
• Decide who is the importer of record. The importer of record is responsible for entering the goods, classifying them, and paying duties. CBP’s guide Importing into the United States explains the role; most companies use a licensed customs broker.
• Register for state taxes where the entity needs to. Sales and use tax rules vary by state, so ask a U.S. tax adviser before the first invoice.

None of this is financing yet, but every item on the list is something a U.S. finance partner will ask for when it reviews you as a vendor.

3. Put inventory in the U.S. before you sell on credit

This is the step overseas manufacturers most often skip. For a financed sale, the equipment should already be cleared through customs and sitting in U.S. inventory, in your own warehouse, a third-party logistics warehouse, or your dealer’s stock, ready to deliver. At Five West, the equipment has to be in U.S. inventory and ready for delivery before funding. Price that stock with the full landed cost in mind: freight, duties, brokerage, and warehousing.

4. Set up a vendor program with a U.S. finance partner

The U.S. entity, or each U.S. dealer, then joins a vendor financing program. At Five West there are three tiers, and all three are free: 3rd Party Financing (refer customers with no minimum volume), Co-Branded (your logo on a financing page and payment calculator, $100,000 in monthly application volume after a 90-day trial), and Private Label (a full program under your brand, $500,000 in monthly application volume). To review you, a finance partner will want the U.S. entity’s details, a sample invoice from the U.S. entity, equipment specifications, and where the inventory is held. The partner application takes about 10 minutes, and it is not a credit application.

5. Decide whether to subsidize a promotional rate

This is where a manufacturer has real leverage. A rate subsidy, also called a buy-down or subvention, is money the manufacturer pays the finance company up front so the buyer gets a lower rate, down to 0% if you choose. The buyer sees a lower payment; the finance company still earns its market return; and you pay the difference once, on each deal you choose to subsidize. The cost is covered in the next section.

A subsidy costs about the same as an equal price discount, so use it where a low monthly payment sells better than a lower price. Many manufacturers run a subsidy on specific models or for a set period, rather than on everything. For the manufacturer’s side of that math at larger tickets, see why equipment manufacturers offer financing.

6. Equip your U.S. sellers

• A monthly payment on every quote the U.S. entity or dealer sends, next to the price.
• Financing on the website: Five West’s partner widgets add a payment estimate, an apply button, or a full financing page with one pasted snippet, with every application tagged to the seller.
• Training for the people who quote: one short session on raising financing early and handing the buyer off cleanly.
• U.S. service, parts, and warranty support. Buyers finance equipment they know they can keep running, and a machine with U.S. support behind it is easier to finance and to resell.

How much does a promotional rate cost the manufacturer?

Here is the math on a $20,000 machine financed over 48 months, assuming the finance company’s market rate for that buyer is 10%:

Illustration only. The subsidy is the $20,000 financed minus the value of the promotional payments discounted at the assumed 10% market rate. Actual rates and buy-down costs are quoted per program and depend on the buyer’s credit, the term, and the equipment.

Two things follow from the table. A modest subsidy, like 4.99%, costs less than half of what 0% does. And the subsidy only pays off where the payment is what stands between the buyer and a yes; on a buyer who would have paid cash, it is a discount you did not need to give.

How does a financed sale work once you are set up?

Once the U.S. entity or dealer is in a program and the machine is in U.S. inventory, every deal runs on the same clock at Five West:

Which equipment, transactions, and buyers qualify?

• Equipment: standard commercial equipment categories, new and used, titled or non-titled. Printing, textile, and finishing equipment are standard categories.
• Transaction size: from a $15,000 usual minimum to $5 million and above, with application-only decisions up to $500,000 on qualifying transactions.
• Terms: set per transaction from the buyer’s credit profile. Equipment finance agreements run 24 to 84 months, and leases 24 to 60 months.
• Buyers: generally established businesses with two or more years in business and 600+ FICO on many programs, with select startup programs for experienced operators, typically at 700+ personal credit.
• Soft costs such as freight, installation, and training can be included on qualifying transactions, so the buyer sees one payment.

For more on the buyer’s side, see what credit score you need for equipment financing.

Mistakes that stall overseas manufacturers

1. Shipping first and asking about financing after. Once a machine ships straight to the buyer, the financing window has usually closed.
2. Invoicing from the overseas parent. Even with a U.S. subsidiary in place, the U.S. entity has to be the one that invoices the U.S. buyer.
3. No U.S. service plan. Buyers ask who fixes the machine before they ask about the rate.
4. Advertising a rate you have not funded. Quote payments as estimates, and advertise a promotional rate only once the subsidy is agreed with the finance partner.
5. Letting every dealer find its own lender. One program across your U.S. dealers keeps pricing, paperwork, and the buyer experience consistent.

The bottom line

U.S. equipment finance is built around a U.S. seller, U.S. inventory, and delivery before funding. An overseas manufacturer gets there with a U.S. subsidiary or a U.S. dealer. From there, the financing is the easy part: a free vendor program, a payment on every quote, and a rate subsidy on the models where a low payment wins the sale. Build the structure first, and the financing follows.

Frequently asked questions

Can a U.S. business finance equipment bought directly from a manufacturer in China or elsewhere overseas?

Generally not through a U.S. equipment finance program when the machine ships straight from the overseas factory. U.S. funders pay a U.S. vendor after the equipment is delivered and accepted in the U.S. The manufacturer needs a U.S. subsidiary that invoices from U.S. inventory, or a U.S. dealer or distributor.

Does the type of equipment matter?

Rarely. Standard commercial categories such as printers, heat presses, and textile finishing equipment finance every day. The shipping point and the U.S. vendor structure matter far more than the category.

Does an overseas manufacturer need a U.S. subsidiary to offer financing?

It needs a U.S. company that invoices the buyer from U.S. inventory. That can be its own U.S. subsidiary, or a U.S. dealer or distributor under a distribution agreement.

What is a rate subsidy, and who pays for it?

A rate subsidy, or buy-down, is money the manufacturer pays the finance company up front so the buyer gets a lower advertised rate. On a $20,000 machine over 48 months with an assumed 10% market rate, a 4.99% promotion costs about $1,840 and a 0% promotion about $3,570. It is optional, and only applies to deals the manufacturer chooses to subsidize.

What transaction sizes and terms does Five West finance?

From a $15,000 usual minimum to $5 million and above. Terms are set per transaction from the buyer’s credit profile, with equipment finance agreements from 24 to 84 months and leases from 24 to 60 months.

When does the U.S. seller get paid?

Five West pays the U.S. seller 100% of the invoice on funding, after the buyer signs and the equipment is delivered from U.S. inventory and accepted. The equipment has to be in the U.S. and ready for delivery before funding.

Does a vendor financing program cost the manufacturer anything?

Not at Five West. Every tier is free, with no setup fee, no monthly fee, and no application fee for buyers. The only cost a manufacturer can choose to take on is a rate subsidy.

What does a finance partner need to approve a new vendor?

Expect to provide the U.S. entity’s details, a sample invoice from that entity, equipment specifications, and where the U.S. inventory is held. Five West’s partner application takes about 10 minutes and is not a credit application.

Keep reading

More for manufacturers, distributors, and dealers.

Vendor financingWhy should equipment manufacturers offer financing?Rate buy-downs versus discounts, and what financing does for volume. Vendor financingHow to set up a customer financing program for your equipment dealershipSix steps, what it costs, and how long it takes. Vendor financingCould your financing partner do better?Six signs a partner is costing you sales, and how to test one.

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This article is general information about commercial equipment financing and vendor programs. It is not a commitment to finance, and it is not tax, legal, customs, or accounting advice. All financing is subject to credit approval and underwriting.