Which set includes the three common origination channels in equipment finance?

Which set includes the three common origination channels in equipment finance?

• A. Direct, bank, and consumer origination.
• B. Direct, vendor, and third-party origination (TPO).
• C. Vendor, broker, and internal origination.
• D. Third-party origination, merchant processing, and affiliate origination.

Answer: (B)

In equipment finance, the main ways deals originate are direct origination, vendor origination, and third-party origination (TPO). Direct origination is when the lender engages with the borrower directly, handling the sale and underwriting in-house. Vendor origination happens when the equipment vendor or manufacturer offers financing as part of the sale, using their relationship with the customer to bring in the loan or lease. Third-party origination involves intermediaries like brokers or independent sales finance companies who source and submit deals to lenders. This combination—direct, vendor, and third-party origination—is the standard set of channels used to originate equipment financing. The other options mix in channels that aren’t typically considered the core origination paths in this field, such as consumer origination or merchant processing, which don’t represent the common equipment-finance origination channels.

In equipment finance, the main ways deals originate are direct origination, vendor origination, and third-party origination (TPO). Direct origination is when the lender engages with the borrower directly, handling the sale and underwriting in-house. Vendor origination happens when the equipment vendor or manufacturer offers financing as part of the sale, using their relationship with the customer to bring in the loan or lease. Third-party origination involves intermediaries like brokers or independent sales finance companies who source and submit deals to lenders.

This combination—direct, vendor, and third-party origination—is the standard set of channels used to originate equipment financing. The other options mix in channels that aren’t typically considered the core origination paths in this field, such as consumer origination or merchant processing, which don’t represent the common equipment-finance origination channels.