Taking the finance deal offered by an equipment supplier or vehicle dealer might restrict your options, mean that you pay high rates and include onerous terms. We have seen finance rates of over 5% from a well known lender drop to 2.4% for a client because the asset was modified and their trading history was not perfect.
Lender rates depend upon the asset and your business. With a wealth of credit and trading information at their disposal, lenders will calculate risk against their own lending criteria and make an offer accordingly. Many companies don’t realise that criteria is often geared towards typical assets. Unmodified vehicles and machinery purchased from dealers where the future market is understood.
If you want to buy used assets or an item that is specially adapted, you might face higher rates that reflect the lenders need to compensate against their lack of understanding of the asset and its sales value.
A main dealer will usually partner with one or two lenders who tend to like high value assets and low risk clients. If you show a blip in your trading history you may not get the low rates other businesses receive.
It is vital that you get advise and multiple quotes. Just Commercial Finance can help. Call 0845 018 0700 or email firstname.lastname@example.org for help.