Embarking on the journey to secure equipment loans is a significant step for any agriculturist or business. As the backbone of Australia, having the right equipment can determine the business’s success. To assist businesses in navigating this financial terrain, here are our top tips to make financing equipment Ezpz.
Understand Your Equipment Needs
Before we dive right into signing up for a loan, it is important to understand the needs of your equipment. If it is not required or your existing equipment hasn’t been considered obsolete, this will have been the easiest financing journey you’d have taken as it is all done and dusted.
Explore feedback from other businesses who have worked with the lender. Seek recommendations and read customer reviews to gauge the effectiveness of the required equipment. Consider the specifications and features of each of these heavy types of machinery; if it fulfils the job you require of it or you have noticed that your current equipment isn’t performing to standard, then it may be time to upgrade.
The next step then becomes figuring out a lender to talk to; a lender like Ezpz can help you discuss these product features and make the financing journey Ez.
Evaluate Your Budget and Repayment Capacity, Research Interest Rates and Loan Terms
The next tip we have is to perform a thorough assessment of your financial situation. Do you have adequate cash flow? If you’re not sure yet of the specifics but have an idea, talk to one of our team members; we can organise a financial plan for you and evaluate a realistic payment plan that aligns with your business’s cash flow.
Different lenders offer varied interest rates and loan terms. It is a very competitive environment out there, and with all the available options, it can be easy to lose track of who is offering what. If you don’t want to get caught with an unfair rate, rely on a financial advisor to help. Ezpz can compare the rates of over 40 different lenders to ensure you have the best plan for your specific cause suitable for your financial goals.
Explore Types of Equipment Covered
Something to be careful of is ensuring that the lender covers the specific equipment you are looking to finance; some lenders may have restrictions on certain machinery, so verify first that your needed equipment is within their financing scope.
Have a Good Credit History for Equipment Loan Approval
A positive credit history enhances your loan application’s chances of approval. Address any outstanding issues on your credit report and maintain a good credit score. If you want to know more about credit history or how to maintain a good score, you can read one of our other blogs.
Prepare Necessary Documents in Advance and Understand the Application Process
Streamline the application process by gathering all necessary documents beforehand. This includes financial statements, tax returns, and any other documentation the lender requires; get in the habit of filing and storing these important documents for future loans.
Familiarise yourself with the lender’s application process and estimated approval time. Knowing the timeline helps plan your equipment acquisition efficiently, as farming can be heavily influenced by the seasons; you wouldn’t want to be caught in busy times with no equipment for the show.
Securing an equipment loan is a strategic move that can significantly impact the success of your agricultural or business venture. By following these essential tips, farmers can confidently navigate the application process and make informed decisions that contribute to the growth and efficiency of their businesses. Ezpz Finance encourages business owners to leverage these tips as they embark on the journey of obtaining equipment loans, ensuring a smoother path towards a thriving and well-equipped enterprise.
