There is a famous quote, often credited to Albert Einstein which roughly translates to insanity as repeating the same process with an expectation that a different outcome may miraculously result. Regardless of the original source, the idea can easily apply to sourcing equipment finance. Prior to the emergence of online resources, when a business owner needed finance to purchase new equipment they would speak with their bank manager directly. In many cases the process would involve a sit-down, face-to-face meeting which at times could feel more like a student in the headmaster’s office. Many business owners would simply accept whatever was offered, without question or further discussion. In some cases just happy to have secured a loan so they could proceed with the equipment or machinery purchase.
At the end of the time scale, tech-savvy operators can source finance online and can be tempted by so called great deals which conceal hidden costs and fees.
Over the term of the finance, if the repayments had not been secured to meet their individual requirements, the pressure on cash flow can start to show and the whole finance deal becomes a burden rather than a benefit to the business. But when it’s time to invest in more equipment, the business owner would once again repeat their previous process, no doubt with expectations of a better outcome, only to have the same scenario play out.
Despite the expansion of the Australian financial sector and the vast choice of lending options, there are businesses that continue to follow the same process when they need loans, only to fail in achieving the best outcome. That process may be through the same bank or finance company or by shopping around and jumping onto the latest craze or a tip from a mate.
We’re certainly not criticising banks. Australia’s leading banks are the major source of finance to both business and individuals in Australia and highly valued lending sources for us on behalf of our clients. Jade Equipment Finance is accredited with the big 4 major banks and many second tier and less well known institutions. They can be highly competitive in many finance deals we arrange but there are other options to consider by way of non-bank lenders which specialise in equipment finance.
The key however to achieving the finance outcome which will deliver the benefits anticipated, is having quick access to a wide range of lenders to source the best deal and the expertise to access and negotiate a better outcome. In simple terms, if doing it yourself is not working out, then we suggest it’s time to change your strategy.
The Case for Change
A change may be required in how you go about arranging your loans or which lenders you are dealing with. If you’ve always handled the finance process yourself, consider using a service like Jade Equipment Finance.
We are experts in the field and have an impressive track record over a long period for delivering not only cheaper equipment finance but additional benefits to our customers:-
- Saving business owners a heap of time by handling the entire deal.
- Covering more lender options quickly and easily to ensure the most appropriate solution has been found.
- Eliminating the risk of the DIY approach potentially causing a negative effect on a credit profile
- Providing high level finance expertise and experience in sourcing and structuring even the most complex equipment finance deals.
Change for Savings Sake
If not for any other reason, why not consider changing your ways to save money!
Paying too much for your finance in higher interest charges, hidden costs or in unsustainable repayments is a cost to the bottom line. Any reduction in costs can deliver an increase in profits and deliver improved productivity. Securing finance at a cheaper interest rate can deliver workable repayments and lower the overall cost of finance.
We consistently deliver better interest rates across our portfolio – worth taking a look? Refer to our Interest Rate Comparison Calculator to see exactly what we’re talking about.
If you’ve always selected a particular loan type without considering the benefits of other options, perhaps it’s worth considering a change.
The selection of finance for equipment finance includes:-
- Equipment Rental or Rent to Own
- Equipment Leasing
- Chattel Mortgage or Equipment Loan
- Commercial Hire Purchase
With the availability of Instant Asset Write-off and temporary full expensing, more business owners are likely to be paying more attention to the type of finance they secure and are becoming more aware of the benefits that the choice of finance can deliver to their business. Having a conversation with your accountant is always advised regarding choice of loan type.
Bad Credit Equipment Loans and Low Docs Applicants For Equipment Finance
Businesses with credit issues and those without all the documentation to meet the usual loan application requirements of the banks and some lenders, can be most vulnerable in sourcing cost-effective finance. Desperation to get a deal and possibly not realising that they can access services such as ours can be some of the factors that caused many to handle their own loan process.
They apply to as many lenders as they can find in the hope of landing the cheapest, or any, loan deal. What many don’t realise is that this approach may be negatively affecting their credit profile. Applications for credit and loans are reported to the credit reporting agencies and multiple applications for the same loan can be interpreted in a negative way by lenders.
Make the Strategic Move
We can assist with our full lending service for all types of equipment for all types of businesses. Why risk the same poor outcome again? There is no obligation to requesting a quote so nothing to lose in making the strategic move and making the change to your financing behaviours. Cheaper finance could be just a phone call away.
Contact US on 1300 000 003 to discuss your 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.