We’ve engaged in the equipment finance space long enough to hear all the tales of woe, from a lack of process understanding to general terminology confusion, and even just simple mismanagement. In light of this, our team has decided to compile a quick blog post with some tips and insights to help our customers understand the basics of equipment finance.
Getting a competitive interest rate (which could save thousands)
If you are a company with good trading metrics (as in, you’re operating a viable business), the interest rates available at present range from 4.75% to 5.5% depending on the asset and term. If you’re quoted or paying rates higher than this, then you’re probably better off shopping around for a better rate, a task that is likely to save you money, time and headaches in the long run.
In this market, you need to be competitive. A 2% saving in the interest cost of a $400,000 near new Truck and Dog combo would save you around $10,000 on a five year term. That’s $10,000 that could be better used by you and your business. I’m sure we don’t need to spell out what an extra $10k could mean for your business, but for most people it is a major game changer!
Banks aren’t better than brokers
A common misconception amongst consumers who have only dealt with banks is that they offer better service and more competitive rates. This isn’t the case, as a broker could quite easily match or outperform a bank, and vice-versa, it often comes down to your business, how well you shop around, and how well you negotiate.
You can have more than one lender
Now more than ever, it pays to spread your general equipment finance spread across a broad range of lenders. Why? Well before long, you can reach a situation when your loans can exceed your ‘headroom’ with a particular lender. That lender can ultimately clip your wings and restrict future growth. With this in mind, it pays to shop around, giving you more options for your future general equipment finance needs.
Finding a solution
With finance, you need a provider that understands the complexities and time-poor nature of the industry, a provider that goes the extra mile for your peace of mind.
Numerous iSeekplant members have engaged with Finlease and have given positive feedback surrounding customer care and diligence. On this note, we suggest taking a gander at Finlease - as they’ll act as your advocate in negotiating with the right financiers to secure your plant finance at attractive rates with optimum terms. A key benefit to using Finlease is their heavy focus on building reciprocal relationships with the intent of supporting and growing a client long-term.
It’s always handy to check out a widget calculator
This tool by Finlease is a great way to size up your repayments and get a rough idea of your monthly payments.
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