When you’re operating a business, a lot of the time it’s hard to find enough hours in the day to get everything done. So it’s understandable that people don’t know every little thing there is to know about equipment finance.
If you’re considering getting some new equipment and/or machinery for your business via financing but aren’t fully across all the ins and outs of things, don’t stress! Over the years we’ve discovered that there are some common errors made when it comes to financing business equipment, and to help you avoid them we’ve created this article which lists them all in black and white.
Mistake #1: Not being aware of all the finance options available
There are quite a few choices available to you in terms of equipment financing. These include:
- Asset leasing
- Commercial chattel mortgages
- Cashflow funding
- Equipment rental
Deciding on which one is right for your business will depend on a few factors such as whether it’s new or used, the brand/model required and its intended frequency of use (just to name a few). If you’re a little confused as to which is best for you, we’re here to clear things up - call us on 1300 787 288.
Mistake #2: Not knowing how much you can afford
It’s important to be realistic about how much you’re able to actually borrow/lease comfortably. Over-exerting can wreak absolute havoc on your finances down the track, so make sure you run the numbers carefully to determine the amount you can afford.
Think about things like whether it’ll impact your cashflow/budgeting (and if so, how extensively) as well as the prospective revenue the new equipment will bring into your business.
Mistake #3: Accepting a lender’s cookie-cutter approach
There are no two businesses that are exactly the same. So it’s important to go with a lender that understands your particular business and its needs and as such will find a finance deal that’s individually suited.
Further to this, it’s important to realise that when calling or visiting a bank, for example, you’ll speak with whoever is available at that specific time which means there’s a good chance their specialties don’t lie in equipment and machinery financing. So will they really be able to deliver the best possible outcome?
Mistake #4: Not shopping around for the best possible deals
If you want to find the lowest rates and terms that match your needs, it’s imperative to do plenty of research across lots of lenders. Also, to avoid any surprises you’ll have to read through all the terms and conditions carefully for each of the finance packages you’re considering.
Of course, you can skip all this time-consuming and likely frustrating legwork and focus on more important things (like running your business) while we take care of it all for you.
Mistake #5: Not choosing Stratton Finance!
When you’ve been in the finance business as long as we have, you’re able to expand the number of lenders you have at your fingertips exponentially. And when you choose Stratton Finance to assist with business equipment financing, you’re going with expert finance brokers that have an incredible amount of experience working with Aussie businesses across the country - and from various industries - to match them with the ideal equipment finance solution out there.
Further to our ability to find the lowest interest rates, we also take an immense amount of pride in providing outstanding customer service not just during the application process but also throughout the life of the loan. Find out how low your estimated monthly repayments could be today by using our handy equipment finance quote tool.
Discover how we can help your business thrive today
Are you ready to take your business to the next level? We’re ready and raring to work with you to help you achieve outstanding results. Whether you’re in need of a facelift in IT equipment, would like to increase your fleet of heavy vehicles and machinery, you’re after a commercial fitout or something else, we can help. Get in touch with us to discuss your needs by calling us on 1300 787 288 or sending us an enquiry which we’ll respond to ASAP.
Disclaimer: Nothing in this article should be assumed as personal advice. You should consider whether the information is appropriate to your needs, and where appropriate, seek advice from a professional financial adviser.