The equipment and heavy machinery lending market is quite extensive in some respects but quite specialised in some ways. While there are a lot of banks and lenders that offer general business finance for the purchase of equipment, when acquiring specific items some business owners require or can benefit from the approach from lenders that focus specifically on equipment finance.
While your Jade Equipment Finance consultant will source and handle your loan requirements, it may be worthwhile for you to have a broad understanding of this select area of finance. We're providing this general overview of the who’s who in equipment finance.
Lender Accreditation
Jade Equipment Finance is accredited with many banks and non-bank bank lenders. Generally speaking, the more quality accreditations a broker or lender has, the better their prospects for sourcing customers better, cheaper low rate equipment finance deals.
To be accredited with a bank or lender means that broker/lender has been given the approval by that bank/lender to work with them to source finance on behalf of their customers. Accreditation is not automatic or can be presumed as soon as say an organisation sets up in business as a finance broker.
Lenders and brokers request accreditation from banks and lenders. Granting of the accreditation is at the discretion of the bank. Jade greatly values our accreditations, without which we would not be in as ideal position to assist our customers with cheaper finance.
We have selected, sourced and been granted accreditation with specific banks and non-bank lenders that we see as some of the best in delivering cost-effective, workable financial solutions for our particular customer base.
Scope of the Market
In general terms there are two categories of business lenders:-
- Banks: financial institutions which have been given banking status by Australian authorities including holding deposits on behalf of customers.
- Non-bank lenders: financial businesses that have been given authority by Australian regulators and have the required qualifications to extend loans and finance. This does not include holding deposits and engaging in other aspects as attached to banking status.
Within non-bank lenders there are the finance companies that are readily known in the public arena and then there are the lesser known operators that we refer to as the industry-only channels. These are more specialist lenders that choose to operate only via a select network of brokers. They will often specialise in a particular sector of finance or even a particular industry. For example, we are accredited with Morris Finance which is a specialist in heavy equipment finance.
Access to these specialist channels is via a network of brokers only.
As non-bank lenders are not regulated in the same manners as banks with full-banking status, they have greater flexibility in regard to lending guidelines. They must still operate within a certain set of regulations but they can be less rigid in establishing their own lending criteria. With many of our equipment finance deals you could say this is where the real business of negotiating major equipment finance happens.
A particular area of interest is with the low docs, no docs and bad credit finance area. With an increasing number of new businesses starting up as contractor and owner-operator, sole trader status becomes de jour, there is a greater demand for finance from business operators who just do not have the extensive documentation and/or trading time as the banks expect.
Non-bank lenders are critical to fill this need in the business finance area. Yes, they do have strict criteria and they do attach conditions to ABN only Low Docs finance, but they do make it possible for these business to have the opportunity to grow with the finance needed.
Banks and non-bank lenders tend to offer the same if not similar range of commercial finance facilities including Commercial Hire Purchase, leasing, Chattel Mortgage and Rent-to-Own but interest rates will vary across the market.
Achieving Flexible Lending Solutions
With this greater variety and more choice, Jade has more scope to source the best equipment finance for each customer. In many deals it is the major banks that offer the preferred option. With others it is one of our other lenders.
At any one time a particular lender may be more or less inclined to extend loans. This can occur because of general market conditions or their own internal conditions and forecasts. Lending decisions are also influenced by an individual lender’s experience with or exposure to a particular industry or sector.
As we are working with these companies on a continuous basis, we have the latest information and data to know who is offering the best deals in what areas. In many cases it may be one of the majors banks that offers the best deal and sometimes it is one of the non-bank lenders.
Our Lenders
Jade is accredited with all of the ‘Big 4’ major banks in Australia – the Commonwealth (CBA), Westpac, ANZ and National Australia Bank (NAB). We are also accredited with Macquarie Bank, BOQ for some areas of finance and St George Bank.
We are accredited with numerous finance companies including, but not limited to, Liberty, Pepper Money, GE Money, RACQ, Latitude and Society One. Our specialist non-bank lenders include Morris Finance, Selfco Leasing, Prospa, Metro Finance and Scottish Pacific Business Finance amongst others. Refer to Our Lenders webpage for more.
Our consultants source finance from across our vast lender panel to secure the cheapest deal for our customers. But if customers want their bank or a specific lender to provide their finance, we will work to those requests and handle the finance arrangements.
For more information on our lenders, our accreditations or how we operate, please reach out to us for an obligation-free discussion.
To discuss your equipment finance requirements, contact Jade Equipment Finance on 1300 000 003
DISCLAIMER: INFORMATION, CONTENT, DATA, REFERENCES AND HINTS CONTAINED IN THIS ARTICLE ARE INTENDED PURELY FOR GENERAL INFORMATION AND NO LIABIILTY FOR ERRORS OR SIMILAR IS ACCEPTED. THE INFORMATION IS NOT INTENDED TO FORM THE SOLE BASIS FOR FINANCIAL DECISIONS. ANY READER CONSIDERS THAT MAY REQUIRE ADVICE ON THEIR PERSONAL OR BUSINESS FINANCIAL SITUATION, THEY ARE ADVISED TO SEEK THE PROFESSIONAL ASSISTANCE OF A FINANCIAL ADVISOR.
