The acquisition of a major piece of equipment, plant or machinery is typically a considered business investment usually requiring finance. Regardless of how many previous equipment loans you may have had, the choice of which is the best lender to approach is always a key part of the finance process. With the Australian finance sector enjoying a wealth of options with competition amongst banks and lenders and with the historic low interest rate situation, choice of lender is significant. In the search for the best finance, business owners should consider the benefits and the reasons why they should use specialist equipment lenders.
Many operators simply contact the bank with which they hold their accounts when requiring a loan. The thought process may be that this must be the most convenient way to arrange finance – just go direct and apply. It appears time saving and that can mean dollars for many operators. Others may go the opposite route. They shop around to multiple banks and finance companies to get multiple quotes to (try) to wade through and compare rates, terms and other conditions.
Both these approaches can overlook a very significant segment of the business finance market – the specialist non-bank equipment lenders. As specialists in the field we outline compelling reasons as to why business owners should use specialist equipment lenders with details of the benefits which can be realised in the process.
Varying Approaches to Lender
The major banks are without doubt the dominant force in the Australian finance sector. But their status as banks requires these organisations to adhere to strict guidelines in regards to both consumer and business finance. Yes, all lenders including non-bank lenders that are licensed credit providers, including Jade Equipment Finance, must follow the law and rulings. But non-bank lenders tend to have greater flexibility when it comes to discussions around certain finance deals.
This approach can result in a lower interest rate and more workable finance terms and conditions which can deliver a more tailored and ultimately more cost-effective finance solution. This flexibility is of particular importance to new businesses requiring no docs and low docs equipment finance and those that have credit issues and need consideration for a bad credit loan.
While the major banks offer a very extensive range of loan products, within the non-bank lending sector there are lenders that specialise in specific industries and/or specific types of heavy equipment, plant or machinery.
It is this specialty that can deliver significant benefits to business. These specialists by the nature of the business, attend to possess resources and more extensive information and understanding of their sectors. This can lead to a more negotiable approach to finance and result in more tailored finance products for individual businesses. They know the players, the challenges and the opportunities and outlook within their key industries. They have a proven interest in that industry and can be extremely more competitive.
The next segment of the specialist lender market is the brokers and broker-style lenders like Jade Equipment Finance. We are accredited with both the major banks and an extensive selection of non-bank lenders. Providing our consultants with access to a wide choice of lenders from which to earmark exactly which will offer our customer the most suitable and cheapest equipment loan.
For businesses that think going directly to the bank is time-saving, they may think adding another layer to the process – going through us, as an unnecessary and time-consuming step. The reality can be vastly different. We save you a lot of time and with direct channels and the knowledge as to who to approach for a quote, the process can be much faster and may deliver a better outcome.
Accessing Specialist Equipment Lenders
One of the obstacles that businesses face when trying to source and access specialist lenders is their exclusivity. Many of these types of lenders operate via industry channels only, working through a network of selected brokers like Jade.
Your Jade Equipment Finance consultant can provide access to specialist lenders to source quotes and structure tailored finance for your requirements.
While the lending sector may appear complex and vast, the types of equipment finance products offered by all lenders tends to be uniform across the market.
The finance products available for plant, machinery and equipment acquisitions include:-
- Equipment Loan which is also referred to as Chattel Mortgage. As this follows quite a straightforward secured loan style structure, many banks and lenders are tending to refer to this type of finance simply as Equipment or Heavy Vehicle Loan.
- Equipment Lease or Asset Lease
- Hire Purchase or Commercial Hire Purchase, both these terms are interchangeable.
- Rent to Buy or Rent to Own, also referred to as Equipment Rental. There are a number of variations across lenders of this type of finance which your Jade consultant will explain.
Sourcing Cheap, Competitive Equipment Finance
There are many benefits to be realised for business through specialist lenders. For access to this lender segment and a quote for your requirements, simply contact us to discuss what you need.
Contact Jade Equipment Finance on 1300 000 003 to discuss specialist equipment lenders
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.