Many people seeking any type of finance or loan, can become fixated on interest rates. This is not surprising when the media widely report the Reserve Bank decision on the official rate when the Board meets on the first Tuesday of each month and lenders advertise their interest rate as the main tempter to attract customers. This fixation can lead to unrealistic expectations when applying for finance.
At Jade Equipment Finance we are fixated on interest rates but in a good way – to ensure we get the cheapest interest rate for every finance deal and every loan offer we make to every customer. That’s our company policy and we’ve stuck to it over our 20 plus years in business and we will continue to well into the future.
We make that commitment because interest rates are an important part of any equipment loan. If you are signing up to a 2, 3, 4, 5 or maybe even 7 year loan term on large equipment purchases, then every small percentage variation in the interest rate on which that loan is structured, can result in a significant difference over the entire term of the loan. So the cheaper the rate we can get you upfront, the better your business bottom line at the end of the loan term.
Don’t be tricked by others offering cheap interest rates without reading the fine print AND doing the deep dive into all the other terms, conditions and charges associated with your overall finance deal.
Jade is an independent equipent loan broker so we are accredited with many, many banks and lenders including several industry-only sources. With this wider field to source, we have a much greater ability to come up with the cheapest interest rates.
Determining Your Interest Rate
Different lenders will offer different interest rates on machinery financing depending on how they view the risk, their specialty area, their costs involved in setting up and servicing the loan, their ability to source their funds and even international economic conditions.
When it comes to your specific equipment loan, the interest rate will be determined by a combination of factors:-
- If the lender understands and has experience financing equipment in your sector and so has confidence to finance your purchase.
- If the lender actually specialises in commercial finance or is more focussed on consumer loans or home loans.
- The amount you wish to borrow and how long you want for the term of the loan.
- The type of equipment and if used, the condition & age.
- Your credit profile and your assessed risk level, as determined by each lender.
- Your length of ABN
- If it is with financial statements & tax returns or no doc equipment finance.
With all those factors determining what interest rate the lender wants to charge for your loan, it’s then down to our superior negotiating skills and the bargaining power we hold as a major finance broker to negotiate that rate down to the lowest level we can – for you!
Our track record for achieving the best interest rates on equipment finance is impressive and we continue to build on with every new finance deal we offer. So don’t have interest rate regret. Don’t commit to an equip finance deal without getting an offer from Jade.
For more details on how rates are determined and to get the best interest rates on your plant and machinery, just call Jade Equipment Finance 1300 000 003.