Commercial asset finance is a way for businesses to get the funds they need to buy or lease essential equipment, like machinery or vehicles, without paying the full cost upfront. Think of it like a tailored loan to help businesses afford big-ticket items they need to operate and grow.
When you're aiming to secure asset finance, preparation is key. The actionable steps below can bolster your chances of sailing smoothly through the approval process.
Clear Financial Records:
Ensure your financial statements, tax returns, management reports, and other related documents are organised and current. Lenders value a transparent view into the financial well-being of your business, and clear records facilitate a smoother review process.
Solidify Your Credit Standing:
Regularly monitor and strive to improve your credit score. Address any discrepancies and ensure timely payments of existing debts. This goes for both personal and business credit files, as some lenders will look at both when forming a decision.
Know Your Assets:
When possible, clearly identify as many details as possible about the particular asset you’re looking to purchase. Being specific helps lenders understand exactly what you’re purchasing and helps form a valuation for the finance application.
Deposit Preparedness:
Whilst not always essential, placing a substantial deposit can help strengthen a finance application. When lenders don’t need to finance 100% of the asset price, they view this as less risky. Some lenders also offer better terms for a strong LVR (Loan-To-Value Ratio).
Provide a Business Forecast:
Illustrate your business’s future potential with a projection. Lenders find solace in knowing that their investment supports a growing venture, and this level of preparedness can make your business appear more reliable.
Highlight Asset Utility:
Explain the pivotal role the asset—whether machinery, equipment, or a vehicle—will play in boosting your business's efficiency and bottom line. When seeking asset finance, it's crucial for lenders to see the tangible benefits and understand exactly how this asset will drive your business forward.
Be Transparent:
If there were past financial hiccups, address them head-on. Offer explanations and show the steps you’ve taken to mitigate such issues in the future. Remember, lenders frequently conduct credit checks and value transparency. It's always better for them to hear about any past issues directly from you rather than discovering them independently.
Need some help with your asset finance? Choosing Blade Finance ensures a seamless journey through the application maze. Not only do we decipher the complexities and connect you with the best lenders, but we take the time to understand you and your business. Let us assist you by streamlining the application process.
Give us a call today on 1300 533 917, or email gday@bladefinance.com.au
Disclaimer: The information provided in this article is intended for general informational purposes only. Every financial profile is unique, and not all advice may be suitable for all situations. It's essential to consult with a professional or trusted advisor to ensure that any decisions made are right for your specific circumstances. Always do your due diligence and make informed decisions.
