Part Two: 3 questions to ask before you choose your finance broker
How do I choose the right finance broker for my needs?
In part one of this article, I mentioned how important it is to find a broker you feel comfortable with.
However, to ensure you’re getting the right advice and financing package, you need to make sure the broker also:
Understands your industry and the way you work
Does your broker have experience working with clients in your industry?
Here at Zenith we have specialists in different types of business equipment financing, property finance, vendor finance – even retirement village finance. The advantage for our clients is that we understand how people in different industries operate.
Doctor’s practice example
We recently helped a doctor’s practice that had been renting for 10 years buy their premises and fit out everything from carpet and cupboards to electrical, offices and examination rooms.
From our many years experience with medical industry clients, we know doctors are incredibly busy people. So we took over the whole financing process and met with them at each step to discuss the options and get approvals to move forward.
Can save you time and stress
The irony of financing big purchases is that we get stressed wondering if we’re getting the best deal. But the only way to find out is to spend time that we can’t afford comparing bank deals – which leads to more stress!
A good broker won’t just approach any five or six banks to get you the best deal. They’ll know which banks prefer to finance certain products – and how to best pitch your case to them. This avoids wasting time and boosts your chances of getting the best result.
Offers advice on smarter ways to use your money
Finance broking isn’t just about getting low interest rates. The real benefit a good broker can offer you is expertise and experience that helps you use your finance in the most effective way.
Franchise business example
Recently, a big franchise store client came to us to find out about how they could rent more forklifts for their warehouse. We worked out that it would be better for them to buy forklifts on a tailored leasing package. Their monthly payments were hardly any different and instead of throwing away rent money, they’ll own these new assets in 3 -4 years.
Can help you gain tax, exchange rate and interest rate advantages
Good brokers should also be able to work out a finance package that suits your cash flow, situation – and reduces your tax. Also, in these times of fluctuating exchange and interest rates there are options to reduce your risks.
Hospitality client example
We’re helping a major hospitality venue lease laundry equipment at the moment. The supplier is also a client who is buying the equipment from Germany for USD100,000.
As the purchase won’t go through for another 3 months we gave them the option to lock in their financing at the present Australian dollar rate – even though they won’t pay until February – in case the dollar goes back down.
They could also lock in interest rates to protect themselves in case of another rise.
Unless you have a close relationship with your bank – and can be sure they’ll offer you the best finance package and advice available – it’s worth talking to an experienced finance broker. Someone you feel comfortable with and who really understands your business and personal needs.
Or get in touch with the Zenith team to discuss your financing needs.