The mortgage broker is well loved in Australia, but when it comes to financing other big-ticket investments such as your car or boat, or getting funds to grow your business, many Australians continue to tread the well-worn straight path to their local bank or finance company.
With interest rates at an all-time low, money is going cheap. However, the steps between seeing a great interest rate and getting approved for finance can make the idea of shopping around for a better deal all too hard.
Which is why it pays to get a broker to do the shopping around for you!
If you're considering finance, here are the things you should expect from an experienced finance broker.
There is no "normal" finance story.
You're unique, and the same applies to your credit profile.
Yet applying for finance can be an experience of trying to fit your unique financial details into a very uniform, standardised form.
So before they do anything else, it's a broker's job to get to know you - what you're planning to buy, your credit profile and history, if you're planning on selling this thing when it's paid off (or even before), what's important to you in a loan - basically, who are you, what do you need, and what's your plan?
This shouldn't be a long process - an experienced broker will know what questions to ask to ensure you make the right start.
Get your broker to do the paperwork for you
Once you've found the perfect loan - it's time to apply, and get the deal done!
Avoiding the back-and-forward when organising documentation can save you hours of running around. Plus, with the option of applying online, over the phone, or on paper - you can choose the option that is most convenient for you.
Buying a car from a private seller? Let us organise that PPSR check. Financing a new forklift for your warehouse? We'll fire up Xero and get your cash-flow, balance sheet and P&L together.
The paperwork required for your application varies case-by-case. An experienced broker will know what's needed to give your application the best chance of success, so you can get it right the first time, and submit all your documentation in one go.
Protect your credit score
If you're applying for finance, you'll probably be asked, 'Have you been previously rejected for finance?'
If you're turned down for a loan, that's typically recorded on your credit file and is likely to be viewed negatively when you try again in the future.
Getting approved the first time is mostly about finding the right lender for you (chances are, that's not the lender whose ad you saw on a bus shelter on the way to work this morning).
If you've got a flawless credit history and you own two homes, the lender for who is right for you is probably different to the lender who is right for your nephew, who just graduated university and wants to buy his first car.
It's the job of your broker to find the best fit for you, which should mean a better deal, and a better chance of success the first time around. Your broker should ensure the lenders know all the things that make you a safe, prudent and worthy candidate for finance - especially if those things don't fit on a form (and they often don't).
Unfortunately, creditworthy people miss out on getting loans every day.
Let's look at an example.
The stratton Commercial team recently helped provide finance to a contract farmer in rural Victoria. He had been in business for three years, and had previously approached his bank, only to be declined on his application for an Airseeder as he did not own any property for security.
This farmer serviced local farms, providing a fully-integrated service which included working on fallow land, preparing the land, seeding the land and then harvesting the crops. The client specialised in wheat, barley and sorghum crops and the machine was a significant investment personally as it was significant in his ability to deliver the integrated service.
stratton helped this farmer prepare cash-flow projections, arrange work source letters and highlight the extra income that he could generate when he purchased the seeder. It took stratton four business days to run due diligence on the business, present the application to a lender, and have it settled.
So while the farmer was was declined by his bank, this didn't mean that he was ineligible for finance. All it took was a few days of work by his stratton consultant, and then he was able to move on with his work - fully financed.
It all comes back to service
By spending time getting to know you, your needs, and all the other things that don't fit neatly into a form - the better your broker will be in advocating your needs to the lender to ensure a smooth, fast approval, and a great deal on your finance.
So here's our pitch
We pride ourselves on being experienced professionals.
For over 18 years, we've been helping people get a better deal on finance. With specialists in car finance, marine and leisure finance (including caravans and camper trailers), and a commercial finance team to help you grow your business, we'd love to help you too.
We'll give you your own consultant from the first call. You get their email and mobile number, so you can start getting to know each other.
Keen to go boating this summer, or planning a trip around Australia? Our Marine and Leisure team specialise in financing boats, caravans, camper trailers and all the other fun stuff.
You can reach them on 1300 955 600 or submit an online application.