Did you know that more than half of small businesses use equipment finance brokers for a significant portion of their financing needs? There are several reasons for this trend.
First and foremost, brokers can offer the benefits of a long-term relationship, which can be particularly important in a world where bank and account managers frequently change. Business owners appreciate working with someone who understands their business and can represent them to the market without having to repeat their story multiple times.
In addition, brokers offer a service that works around the clock. Because much of the administrative work is done outside of normal business hours, it’s essential to be able to speak with a broker or banker when it’s convenient for you.
Brokers can also help businesses spread their debt over several competitive underwriting financiers, which provides a broader base for expansion and some competition to ensure the best interest rates and commercial conditions.
Advocacy is another one of the benefits of equipment finance brokers. Many business owners are experts in their specific industries but may not be as knowledgeable about financing equipment. A broker will ensure that any approval is most closely aligned with the client’s needs, not just what the bank wants. A capable broker will have the experience, knowledge, skill, and influence to negotiate the best outcome for the client.
It’s worth noting that the market for equipment and vehicle financing is changing rapidly. With the increasing popularity of behavioural lending, many underwriters now offer automatic “low doc” competitive finance approvals for selected equipment and vehicle financing up to $150,000 and $500,000 for replacement equipment, trucks, and trailers. Brokers can provide some wonderful alternatives for business owners.
However, as with any industry, there are good operators and not-so-good ones. To find the right broker, it’s essential to look at what existing clients are saying and ask other business owners who they use and why. The best referral is a happy customer.
You can get in touch with the Finlease team to learn more about how a broker can assist your business today and into the future.
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