As a Finance Broker, my recommendation is always for you to use a broker. You may well say, ‘Of course he is going to say that!’ but there are many reasons that this really is good advice.
If you use a broker for equipment finance they will be in it for the long haul. A good broker will develop a relationship with you that ensures he understands your needs as well as those of your business! With this, he brings a personal service, advocacy, expertise, and knowledge of an ever-changing market.
When you choose who to work with, you should expect to be working with the same person or team long term. We encourage you to look for someone that you can work with for decades rather than for just one deal.
If you go direct to a bank that is unlikely. Personnel change regularly and so does your contact. A long-term relationship with a good broker should be a mutually-beneficial business partnership. It should provide you with a member of your team who knows your business and can represent you to the lender market. This should happen without a retelling of your business history each time you are looking for equipment finance.
Getting a Personal service
If you run a business the chances are that you sometimes have to work outside of the ‘normal’ 9 – 5. If you are dealing with a broker, they too will operate outside of the traditional working day. They are far more likely to meet you after hours and on the weekend than your bank manager. Maybe this is the reason that brokers are responsible for more than 50% of the total loans currently written. That includes equipment finance.
One of the other great benefits of working with a broker is the work that they take off your hands. They look after the majority of the paperwork for you. This includes bringing all the required documentation together and application submission.
Your broker will be there right up to final settlement.
Finance brokers must ensure that any equipment finance approval is commercial. It must be closely aligned with what your business needs. An experienced broker also knows the requirements of a range of lenders. They will have the experience, knowledge, skill, and influence to match you to a lender that suits you better. This means that they are able to present your business in the best light to the lender. They will negotiate the best outcome for you.
The best commercial brokers have demonstrable experience. There are many facets of commercial and business lending with its’ very own rules and legislation. This is why speaking to a broker with varied experience is vital. The key is in having current knowledge of commercial lenders and their processes. A good broker knows the relevant information to gather in preparation for an application. This is how you can ensure success for the client.
Imagine having your own CFO or Financial Controller working on your behalf. Someone who is available at any time but who gets paid considerably less than someone doing the same work on your payroll! They understand the jargon and the processes. They can cut through the red tape to organise your application and secure your finance with little fuss and delay.
Knowledge of a changing market
Of course, securing the best loan for your equipment is not all about the interest rates. It’s about so much more than that. A great broker will do more than that. He will provide your business with products that best provide opportunities for you to make money and build your business.
Brokers are in constant contact with their panel of lenders to stay up to date with the latest product offerings. They understand the latest lenders’ criteria to assist in getting quick and successful approval.
Why use a broker for equipment finance?
When you use a broker, you will save:
How you do that is simple. They will do all the product research and complete the loan application process.
The software platforms that brokers now have access to provide them with detailed access to a large variety of lenders. They are more likely to find a lender product that suits your needs perfectly. Brokers have professional networks and industry experience that can provide your business with the expertise it would not be able to access. The question should be ‘Why wouldn’t you use a broker for equipment finance?’
One of the key idiosyncrasies of great brokers to go above and beyond for their clients on a daily basis. This can include meeting them on their worksite, on the road, after hours and when needed on the weekends.
Secondly, a good broker understands that their clients are extremely busy running their own business. Managing the whole loan process for you and ensuring all aspects of the application to the settlement process is the main focus of any good broker.
The broker takes the role of the business owner in working through the maze of all the necessary paperwork. He gets it ready to present to the lender.
If you still need convincing, let me buy you a coffee and we can chat about your requirements. If I don’t think I can help you I will let you know immediately. You don’t have time to waste and I understand that. You can call me, Shannon Nowlan on 0419 939 619 for an informal discussion.
I look forward to hearing from you and to hearing about your business.