Taking the BS out of equipment finance.
Thanks to Mark O’Donoghue for taking some time out of his day at finlease to answer some of most asked questions when it comes to financing construction, farming, trucking & capital machinery purchases.
“Having spent 30 years financing equipment for a diverse range of long term and new clients
in many capital intensive industries, I thought it would assist to take the BS out of some of
the stories I have heard over the years.”
If you are a solid company with good trading results, the interest rates available at present
range from 4.5% to 5.5% depending on the asset and term.
Banks don’t finance Used or Private Sale machines?
This is simply not the case, there are plenty of competitive financiers who will happily finance
used machines including private sales at good interest rates and often there are significant
savings to be made by going down this track.
Yes, there are a couple of extra steps in the finance process including an inspection of the
asset but these are easily arranged. Care does need to be taken however to ensure that the
asset being purchased is not currently either under finance or caught up under a GSA
(formally known as a fixed and floating charge), but this is easily checked through a company
search on the vendor.
My bank won’t provide any further finance until they have reviewed my accounts?
That may be the case with your bank, but there are a swag of other competitive financiers
out there who will finance vehicles and equipment at good interest rates without the need for
financials provided the company has been going for 2 to 3 years and has a clean credit
history. Where assets are being upgraded, there are no financials policies that can finance
replacement equipment up to $500,000.
We use our bank as brokers are more expensive?
This is simply not the case and easily tested by obtaining finance quotes so you can compare
the monthly finance costs.
Larger broking firms place very large volumes to market ($500 million p/a in our case) and
this drives substantial discounts.
Any decent broker will be looking for a 20 year relationship and will act in a manner which
ensures the continuation of that relationship.
Mark O’Donoghue, CEO & Founder of Finlease
Check out Finlease’s exhibitor profile page here.