Following on from our successful blog about financing tips we thought we would follow it up with another post. So here is part 2:
4.Try and buy from recognised suppliers
Buying from dealers makes it much easier to finance equipment than buying from non-dealers. I hear you ask why….
It’s about security. The funder has more confidence that the asset they are paying for is owned by the supplier when purchasing from a dealer. We can still finance assets being purchase from non-dealers, but the supplier will be asked for proof of title. Proof of title is the original purchase documentation which consists of the original invoice and a proof of payment (finance settlement or bank statement). This can often cause delays.
5.Supply as information as you can
For a funder to provide you the best possible deal giving them as much financial information as possible can help them underwrite the deal. The benefits of supplying additional information above the minimum required include:
- Better terms
- Faster underwrites
- Larger credit facilities
Extra information could include VAT returns, management accounts, debtors and creditors list etc.
When a funder provides you finance, they are becoming a business partner with you. They are going to invest in your business to help you achieve the objectives you have set out. Whether that is a business loan or an asset purchase. Several businesses have stories including missed payments and other adverse credit. This is particularly the case after the COVID-19 lockdowns. They can work with those stories and help but they need to know about them. Hiding this information for them to discover later can often cause a deal to falter or be cancelled completely.
So let them help you by being honest. They even provide more flexible terms than you requested for.
For more information call the team on 01889 221800