Hi JWR
All vendor finance buyers understand they will pay more because they can't get a loan from the traditional market. A lot of them have also been to third tier lenders before they come to vendor financiers. These buyers tell us that to get a loan from these lenders will cost them anywhere from 13% to 16%.
Currently the average vendor financier is charging between 9% and 10.5%, often with lower honeymoon rates for the first few years.
Your ability to get any loan will always depend on how the lenders perceive your risk profile. If you are assessed as having a higher risk profile than the average, you will pay more to borrow the money and, as you can see, it's not vendor financiers that are providing the most expensive money in the marketplace.
Cheers, Paul