Equipment Finance
Getting a comprehensive security network requires a wide range of equipment. From intercoms to CCTV to alarm systems, you will need to spend on purchasing this equipment. However, especially where you are big business, the cost of this purchase can rise to hundreds of dollars.
However, while this represents a financial difficulty, it should not stop you from securing yourself or your business. There are various financing options through which you can relieve yourself of the burden of making an outright purchase with your money.
All you need to do is find a lender. Afterwards, you can enter into a loan agreement with them for the purchase sum. You will then commit to paying back the purchase price with interest over some time. The advantage of this option is that you do not have to bear the financial brunt at once. You can pay over an extended duration such that you hardly know you are even paying.
Why Equipment Finance?
Equipment finance comes with various advantages to your business or personal account. They include:
- Allows you to maintain your financial stability
- Flexible and easy repayment structure
- Possible tax benefits
Who Can Finance Your Equipment Purchase?
If you are looking to finance your equipment purchase, various entities can offer the needed funds. So, if equipment finance sounds like a favourable option to you, here are some sources you should consider.
Financial Institutions
The first group to consider when looking towards equipment finance are financial institutions. They include banks, building societies, and credit unions. They can provide funding in the form of loans, lines of credit, and overdrafts.
Retailers
You can also try out retailers for your equipment financing. Typically, you will purchase the necessary security equipment though store credits. Usually, these stores run a partnership with a finance company to provide this finance option.
Although it comes with a much higher interest rate, you can get some stores to provide a free period. This way, you don’t have to pay any interest during that period.
Finance Companies
You can always approach a finance company for financing. However, in most cases, these companies’ partner with a retailer. So, it’s quite similar to the option above.
Peer-to-peer Lenders
Another option to finance equipment purchase is peer-to-peer lending. In this instance, you will get matched with individuals who have spare cash to invest. Usually, the interest rate differs, and it is based on the amount of risk that you pose and the duration of the loan.
Choosing the Right Lending Company
A huge and considerable part of acquiring financing to purchase the needed security equipment is finding the right lender. For your business to do this, here are some ASIC guidelines to follow.
- Ensure they have a license provided by ASIC: before picking a lender, ensure they have permission to render such services. Alternatively, ensure they represent someone who has a license. For you to confirm, you can check the rental agreement or credit contract.
- Ensure they provide a credit proposal disclosure and credit guide: before signing the credit agreement, ensure it is a lender that has provided this document. Also, the material the lender provides must reflect their license number, charges and fee, contact details, and the dispute resolution mechanism.
- Ensure they provide a quote for their services: ensure you only sign after you get this quote. However, you can waive it if it is a free service or there is an existing write contract stipulating how much you will pay.
Improving Your Credit Profile
If you are looking to get equipment finance, you will need your credit profile to be in good standing. To achieve this, here are a few things that can help.
- Assess your Credit Report: before you make the next loan application, ensure you have checked your credit report. This is to ensure that there is no error there. So, get a copy, then assess it to be sure the debts there are yours. In case there is a mistake, you can get a credit reporter to help fix them.
- Discharge some debt obligation: ensure your existing loan obligations are on track. This way, your credit score is better. You can also make some extra repayments. This will help you reduce your interest obligation where it is compound.
- Consolidate your debt using a lower interest rate so you can reduce interest repayments
- Create a budget: ensure you have a budget that details your expenses and income over a period. This way, you can self-assess your capacity to repay and make early repayments in some loans.
DISCLAIMER: The information presented above is nothing more than a GENERAL MATERIAL for personal use and consideration. They do not, in any way, constitute an advice or recommendation from SNOG. Hence, we do not take liability for errors in the presentation and/or interpretation of the facts highlighted herein. Also, we do not take responsibility for the analysis and exposition on information present in the public domain. We recommend that you consult with an accountant or financial advisor if you are looking for a specific recommendation regarding your financial needs or circumstances.