How Do You Choose An Equipment Financing Brisbane Company?
Equipment financing allows you to buy your business the assets required to maintain current operations—or to increase capacity, which enhances your competitive edge and long-term profitability. For example, restaurant owners may want to buy new stoves, a courier company may want more vehicles, etc. Normally, you don’t need to pledge for additional assets since the equipment purchased will serve as the collateral. This is perfect for most business owners who don’t have other types of collateral to put up to secure the funding they need. Also, compared to equipment leasing where you only rent equipment from a leasing company, you’ll own it right away if you go with equipment financing Brisbane.
How Can You Qualify for Equipment Financing?
If your business uses physical equipment for its day-to-day operations, you can make use of equipment financing. It can range from computers, vehicles, or any type of machinery your business utilizes.
But, qualifying for equipment financing is another issue. Since equipment loans are a relatively “conservative” financial product, you must have a good credit score (600+) and the ability to service the loans. You need to find the right equipment financer too, or the one who finances your type of equipment.
Is it what your business needs? If you say yes to any of these questions, equipment financing Brisbane may be what you’re looking for:
- Do you need expensive equipment but you can’t afford (or don’t want to) to pay that equipment upfront?
- Do you frequently replace your equipment because of its short lifespan, or because you need to be updated with the latest technology?
- Do you need some combination of the above?
Just remember that it has a few downsides.
Firstly, some institutions will only cover 80-90% of the total cost, so you must be prepared with the remaining 10-20%. Secondly, once the term ends, the arrangement will cost higher compared to if you just bought the equipment outright.
What Questions Should You Ask a Potential Equipment Financing Brisbane Company?
With a lot of lending companies in the market today, here are some questions to ask when searching for a lender:
What is your experience?
There’s no substitute for experience. Issues will arise during the life of your loan that need to be discussed and maybe need to be adjusted.
Say your equipment investment turned out to be more successful than expected so you wish to borrow more funds to generate more ROI. You want to know if your equipment financing partner is capable of helping you make safe and smart decisions that are in your interest: not theirs.
Does your equipment financing Brisbane company support small to medium-sized businesses?
Some companies only deal with huge enterprises because they’re less risky and more profitable to work with. If you’re a small to mid-sized business owner, make sure your partner is dedicated and committed to leading you to success.
Can I buy from the vendor of my choice?
Some companies only allow you to buy from certain vendors. This should be a deal-breaker. You should have the freedom to buy from the vendor (or vendors) that satisfies your business’ needs, and not listen to the “advice” of a financing company.
Do you have flexible repayment options?
How long do you plan to repay your loan? An equipment financing Brisbane partner should offer several repayment options, and help you identify which term length maximizes your financial health (cost of borrowing, cash flow, etc.)
What’s your policy on bad credit equipment financing?
This question isn’t applicable if you have a good business and good personal credit. However, if you’re among those many business owners who don’t have an exceptional credit score, you should look for a partner who considers other criteria to determine your worthiness.
Can I choose between purchasing and leasing?
In basic terms, financing equals ownership while leasing is like renting. They both have benefits depending on your industry and the type of equipment you need.
An equipment financing Brisbane company gives the funds you need to buy equipment right away, without using the money needed to run your business. It’s great if you need equipment long-term and isn’t a technology purchase.
Meanwhile, leasing lets you continue upgrading to newer models once available. It’s a good choice if you only need equipment short-term or if the equipment you need quickly becomes obsolete. The lender maintains ownership but some have the option where you can buy the equipment once the term ends.
What’s your turnaround time?
Make sure the company you choose knows that time is essential. They should be able to evaluate your application immediately and once approved, you should be able to get the funds you need as soon as possible.
Why Should mhf Finance be Your Equipment Financing Brisbane Partner?
Equipment financing is ideal if you’re a business owner who needs equipment for their business that won’t depreciate easily. As long as it isn’t technology-related, equipment finance has you covered.
Here at mhf Finance, we’re determined to help you meet your business objectives. We’re fully-accredited with major financial institutions, equipment financiers, and non-bank institutions so we’re confident that we can find the right product for you. We’ve helped all our clients, from small to big enterprises, get the perfect finance solution to achieve growth in their business. Come and team with us so we could do the same for you.
What are you waiting for? Contact and make us your equipment financing Brisbane partner today!