Asset Finance – Things to look out for!
There are a number of considerations to bear in mind when looking to engage a finance provider. Inevitably, as in any field, some will be more experienced and reliable than others, but how do you ensure you select the right one?
Look for a broker with a strong reputation in your sector! Take a good look at their website and news stories. Read their testimonials and case studies! Check them out on Linkedin! If they have effectively helped another small business achieve their goals, shown particular knowledge of your market or given exceptional service to someone like you then they are likely a good choice!
Be mindful of…
A Quotation that seems way out of line with any others without a clear reason!
Most finance brokers have similar funding lines in place, although some do have more choices than others. That said, you will find their quotations to be very similar with monthly payments tending to be consistent from one to another. Some, like PMD, will have specific rates applicable, for example to medical professionals, so these will be more beneficial.
However, if something is vastly different there should be good explanation as to why! If something seems too good to be true, the likelihood is, it probably is.
Unfortunately, whilst we like to quote our customers fairly and realistically this is not necessarily the practice of some of our industry peers! We often find that other brokers quote low to pique interest and can’t actually deliver on this figure when it comes to it!
We take a much more transparent and honest approach and if we can provide better than we have first indicated then we always will!
We are always happy to check paperwork for you prior to signing to ensure you are getting what you think you are!
Minimum term finance agreements
A ‘minimum term agreement’ is essentially a contract that never ends if you fail to give notice to terminate. Rolling agreements do exactly what they say – they roll on, which means you could forget about when you were expecting it to end and pay for longer than you need to.
To avoid extra costs, look for fixed term finance agreements or supplementary letters/ emails to a minimum term contract ensuring you give term notice at the start. This should be documented by your broker, who will ensure the funder is aware of your intention to end the agreement after a fixed time.
A good broker will help you with this to prevent you having a stressful time later on!
Using a finance broker gives you great choice and flexibility and is often the best solution for your business.
Whether you are you are looking to start your business, grow your business, acquire equipment or simply need a cash flow injection: a good broker will guide you through the process and help you along your journey. They should do this with integrity and always offer you concise transparency, ultimately becoming your go to finance provider for many years to come!