Whether you are an owner of a small company or a shareholder in a larger company, sometimes the decision will need to be made on whether to borrow money or not in order to grow the business.
You will find that the majority of companies have a debt of some sort. This is not something that is negative but something that helps grow the business if the money is taken for the correct reasons.
Sometimes, the money may be required for specific equipment and there are good equipment financing services available to offer you this. Find out here how this type of service can help to grow your business.
#1 Interest Rates
With the current position of our economy being in a pretty unstable position, it can be hard to get a good rate with the banks or conventional lenders for finance.
Having a call with the equipment financing services could prove to an invaluable one. You will find that their rates are extremely competitive and beat a lot of the mainstream lenders.
Clearly, you want to negotiate the best interest rate that you can but also make sure that you read the termination clauses in detail so that if you want to break out of the deal and settle, you are not hitting massive penalty charges!
#2 Help Find the Equipment
The lender will also help you source the equipment at the best price. Whether it is heavy construction equipment, cranes or forklifts, the lender has all the experience in this field and preferred suppliers.
They can also help by giving the lender a deposit before the item is shipped, guaranteeing you get what you need.
#3 Length of Contract
Sometimes conventional lenders will hold you back and want the money paid back under some pretty tight terms. This is so that the risk to them is minimal and they get back what has been given.
However, equipment financing services are far more likely to allow you to take the finance out over a longer term, sometimes up to 10 years. Make sure that you get the balance right as the longer you take out finance, generally you will pay a lot more back in interest.
As such, you want to strike the right balance where you pay the finance back as swiftly as you can that is affordable and not cause you underlying issues.
#4 Success Fees
There are success fees relating to the referral for finance which is a pretty standard approach. The fee varies on the amount of finance that is required; however, you are normally talking around $15k for success referrals over $750k.
This fee does not apply until all the checks are completed and hands have been shaken. Sometimes these success fees can be negotiated slightly therefore even if they tell you it is a standard rate; it may be worth changing your luck and try to get some money taken off this!
Consider using this type of service to help grow your own business.