# Vendor Finance V2

Version 2 represents a notable milestone in the progression of Vendor Finance. We have diligently incorporated user feedback received, resulting in an enhanced user experience for both lenders and borrowers. Lenders can now rest assured that their idle capital can be working for them by using a [strategy](/overview/vendor-finance-v2/strategies.md). V2 was also built to support different [pool types](/overview/vendor-finance-v2/how-tos.md), enabling faster composability and scalability of the protocol.

The most common pool type is the [Lender First Pool](/overview/vendor-finance-v2/how-tos/lender-first-pool.md), which features a single lender to many borrowers relationship, where the typical lending flow can be summarized by the following:

1. A single lender creates a Vendor lending pool with customized loan terms and seeds the pool with their desired capital.
2. Numerous borrowers can contribute collateral to the pool in order to secure their loans.
3. Borrower(s) are granted the period until the loan's [Repayment due date](/overview/vendor-finance-v2/definitions.md) to repay. Successful repayment results in the return of their collateral while failure to repay leads to collateral forfeiture to the lender while retaining the loan. This is also know as a [Default](/overview/vendor-finance-v2/definitions.md). The lending pools also accommodates partial repayments, enhancing borrower flexibility.

More detail can be found in the following sections.


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