Are you willing to expand your business by investing in equipment? There are a host of reasons, why business owners prefer to avail equipment finance rather than spending a heap of cash to buy new machinery. However, it is a time-consuming task to choose the best financing from the overwhelming list of options. That is why a majority of the business houses and corporate prefer to hire equipment finance brokers to get the job done with ease.
Who is an Equipment Finance Broker?
An equipment finance broker acts as an intermediary between three parties:
- Companies with limited budgets searching for equipment,
- Manufacturers looking for clients
- Lenders who are willing to grant loans at a fixed interest rate
By bringing these parties together, the broker earns a commission either from the manufacturer or from the lender, or both. They rely upon a client database, conduct thorough market research and also do cold-calling to finalise the deals.
It is interesting to know that over 50% of small business owners prefer to hire equipment finance brokers to fulfill their business needs. However, what are the underlying causes?
Let us uncover the reasons one by one.
Develop Relationship with Manufacturers and Banks
Since it is their profession to bring the parties together, equipment finance brokers develop long-term relationships with manufacturers, banks and other lenders to expand their network. The broker earns a commission from companies who need equipment finance in Goondiwindi, but fall short of budget or who want to lease equipment for a limited span of time.
Manufacturers find financial benefits by leasing a piece of equipment for a long time rather than selling it out completely. In most of the cases, the companies struggle with funding, even with leasing and that is where the network of a finance broker appears. The broker connects the lenders such as banks with companies searching for capital to buy new equipment.
Facilitate in Customer Service
With years of market study and research, the finance brokers gradually become experts in the equipment domain and offer consultation services to companies searching for the best equipment financing option. The finance broker in Kingaroy would understand the nature and type of your business and accordingly suggest the right equipment lease option. The broker would explain the leasing terms mentioned in the loan agreement to the parties that widely facilitate the paperwork.
Helps in Advocacy
Clients are particular about their business requirements. There are many instances where the approval papers provided by the banks do not ideally match the client's requirements. It is the responsibility of the finance broker in Dalby to ensure that the commercial documents contain the necessary clauses, terms, and conditions that satisfy the client’s requirements.
Final Note
Equipment financing involves market research, analysis, and sound domain knowledge. It is not an easy task to choose a reliable equipment finance broker, who can provide you with the best financing solution. However, you can trust the finance brokers who are well-versed in equipment and are known for their impeccable services.
The author is a renowned finance broker in Kingaroy and Dalby and is a consultant of equipment finance in Goondiwindi.
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