The acquisition of new plant, machinery and equipment can be a considered investment and a major expense for many business operators. Depending on the industry sector, the price of the equipment can be large and then there is the equipment finance to consider also. Many business owners, while highly skilled and expert in their own field, will be seeking guidance and advice when considering such a major business investment with finance.
With a range of finance experts and specialists providing varying and differing services, some business owners may be wondering who do they ask what questions when it comes to acquiring new equipment. There are a number of finance professionals available to advise businesses in making critical acquisition decisions and to assist in securing cost-effective equipment finance.
Jade Equipment Finance is a specialist finance broker style lender and our consultants are ideally-placed to assist businesses secure cheap equipment finance. But our role does not encompass providing advice to businesses in regard to their specific financial goals and objectives. We explain the different roles and responsibilities of finance professionals and provide direction for new businesses seeking general information on loans.
Differentiating Advisor from Broker from Accountant
The term ‘financial advisor’ is used in a number of settings and can have different interpretations depending on the individual service provider. A finance broker is clearly differentiated from a financial advisor in the services and advice they provide.
A finance broker such as Jade, is tasked with sourcing finance for customers. Our undertaking is to focus purely on the needs of our customers and achieve the best finance offer according to the brief provided. We are accredited with a vast selection of banks and non-bank lenders, which provides us with incredible depth and scope to source the cheapest finance deal.
Our role extends to handling the negotiations, loan structure and assisting with settlement. While we are essentially representing our customer to the lenders, all decisions are left to our customer to make.
That is where the role of the financial advisor or the business accountant may be required. Businesses may retain the services of a financial advisor or consultant to handle their superannuation, investing their funds and to assist with other strategic business matters. Consultants are often involved in corporate structures and the like.
Accountants are primarily tasked with preparing the business accounts and tax returns and can provide quite an extensive range of services in that space.
It is an accountant or possibly advisor that typically has a more detailed perspective of the individual goals and objectives of a business. As such they are best placed to advise businesses on which type of finance product will suit them and assist with making the decision as to whether or not to accept a finance offer, where assistance is sought.
In most instances, advisors and accountants do not source finance on behalf of customers but may intervene in discussions with say the bank if the customer is sourcing their own finance. Many accountants will have contacts with finance brokers such as Jade and will refer clients accordingly.
General Information for New Businesses
When setting up a new business, many operators may not have established connections with advisors and accountants and may be new to the business finance scene. New businesses are completely welcome to contact Jade Equipment Finance directly to discuss their finance requirements.
New businesses often do not have all the financial documents that most banks especially, require to complete the loan application. They will require Low Docs and No Docs Equipment Finance which are specialist loan categories which Jade as a broker can assist with.
Business owners may wish to upgrade their knowledge in general before requesting a quote. Unlike consumer finance which is highly regulated under ASIC, business and commercial finance is not regulated in that same way. But there are a range of sources that provide general information on business finance.
The Australian Taxation Office (ATO) has a range of information and state governments have Small Business Offices or Departments which may be a good source of information. When a new business applies for finance, often the financial position of the owner will be assessed as part of the application approval process. Referring to MoneySmart may assist with issues around the personal credit profile.
Our Tips and News section is also packed with articles covering a range of subjects to assist our customers.
Differentiating the Finance Products
Equipment can be financed with a number of loan products:
- Rent to Own
- Chattel Mortgage
- Hire Purchase
Each of these offer varying features and benefits, many of which refer to the accounting practices and approach of the business. While your Jade consultant will source quotes and offers for the loan type(s) requested, business owners are recommended to refer to their accountant for assistance in deciding which type of finance will best meet their objectives.
Having a good understanding of equipment finance can be important for business owners in selecting the right product and in making the decision to accept an offer made by one of our lenders. Knowing who to ask what questions when you have queries is the first step in acquiring that level of knowledge and understanding.
Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss a quote on equipment finance.
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.