During the past 12 months, I was fortunate to be able to complete the Advanced…
From time to time as an Asset Finance Broker, I am approached to assist with financing specialised equipment that challenges the norm and is a bit outside the box.
Often when it comes to finance, if you are trying to do something different, Lenders will sometimes run for cover and hide under the “our policy” doona!
But that is what I love about my role, finding solutions that at the outset appear challenging.
Financing Specialised Equipment – The Challenge!
Don’t Enter Negotiations Blindfolded!
To find a solution, our starting point was to complete our Loan & Bankability Assessment. This is a powerful process we use to:
- Establish an applicant’s ability to service existing and proposed borrowings
- Identify issues that may need to be addressed to improve the prospects of approval and the clients negotiating power
To approach the market before undertaking this work is a bit like trying to play tennis blindfolded! You might be lucky and hit a few balls, but more likely, it will end badly!
Address Lender Concerns Before Approaching the Market
Market Access Delivers More Options & Better Outcomes
The next step in the process was to consider which of our panel Lenders were flexible enough in their thinking to consider this type of financing.
This is important, particularly when seeking financing for specialised equipment.
Lender policies and appetite varies widely.
Too often business owners approach their existing Bank, in the mistaken belief all lenders are the same. That if their Bank won’t do it, no one will.
However, increasingly some Lenders service particular niches in the market. They build their expertise and understanding by focusing on a niche and do it well.
Whilst the majors continue to play a valuable role, the market is far more fragmented than a decade ago. For businesses, this means more options exist.
A Successful Outcome Achieved
The key to the outcome we achieved was working with Lenders who were prepared to consider the financing and who were not handcuffed by “policy”. They had an open mind and were prepared to assess the request on its merits.
Ultimately, we were able to secure financing for both the asset purchase and also the proposed modifications.
Not only this, but the rates and terms were also highly competitive.
Needless to say, the client was delighted.
In Summary, this is a great example of how business owners can use the power of market access and Specialist Lenders to access the finance they need.
If you want to learn more or are seeking financing of Specialised Equipment don’t hesitate to give me a call.