In a nutshell, equipment financing is the act of applying for a sum of cash to cover specific assets. Most people will need to approach lenders individually, or with the helpful support of a loan broker. If approved, the cash received can reduce expenses by allowing the borrower to purchase the equipment that they need (from farm equipment to gym facilities) and then pay back what they owe with interest over time. How does it work and a bit more information When asking ‘what is equipment finance’, the easy answer would be to say that it’s a method of obtaining cash support from a lender. Unlike a regular loan however, the financial support can and should be used to pay for equipment. This equipment can vary depending on the industry and the borrower’s needs, but in most cases it will relate to assets that can be used to assist with the functionality of a business and its services. Can individuals apply for financing? In some cases yes, but the majority of clients and borrowers will hail from a business-oriented background. For example, if a company owner is trying to establish their new agency then they may find the cost of equipment such as electronic devices, furniture and fittings quite a substantial expense – and this may make their financial situation a little challenging in the future. Instead of saving up and potentially losing out on profits, the company owner could apply for an office equipment loan to help to cover their initial costs; allowing them more money to spend where it’s needed. Likewise, a farmer may find that they require a new commercial vehicle or piece of machinery to run their farm – and a dedicated farm equipment loan might be more convenient. The same can be said for gym equipment loans and medical equipment loans as well – and as these options are aimed at specialists in each field, they can be tailored to benefit the applicant and their needs (especially when using a broker to help to negotiate the terms of a borrowing agreement).
Home Mortgage Broker vs Bank If you have actually decided that now is the time to apply for a mortgage, you’ll usually have 2 options. The first is to approach a bank directly to find out about their loans, however the second (and far more appealing) option is to have a mortgage broker compare loans from a series of lenders to increase your opportunities of making an application for the perfect loan for you. No matter what you might have heard, employing a broker implies that they will be working for you. It’s their job to link you with the right loan for your needs. Banks care about their shareholders, brokers care about their customers – and this is a reality. Utilizing a broker could mean that you wind up finding loans that aren’t obvious at first but feature lower requirements (which can maximise your opportunities of a successful application). Great brokers can likewise recommend loans that benefit you well into the future, rather than attempting to lure you with limited-time benefits. And if your situations ever change, a broker might discover a more enticing loan for you to change to in the future. Considering that bank employees get paid regardless of which deal they sign you up to – does not it make more sense to hire a broker that will only get payment if your loan is settled? That means that you’ll have access to their insider knowledge and competence, whilst understanding that they will work as difficult as possible to be paid for their efforts. How is a Home Mortgage Broker Paid? Which brings us on to our next point – how a broker actually makes money. A lot of will get commission from a loan provider for bringing a brand-new customer their way and this payment will typically be a small percentage of the total cost of the loan itself. Some brokers also receive an ongoing commission from the loan provider throughout the duration of the loan. Very seldom nevertheless, a broker may charge their customer if they did all of the hard work putting together an application, however the candidate went in other places for their loan requirements. What are the main differences between physical and online brokers? In a general sense, these types of financial experts will offer similar services. Regardless of whether they have a physical office to greet their clientele, or if they instead provide online services – their goals will predominantly be the same. Both types will strive to help their clients secure mortgages, but not at any cost. The purpose of a broker is to help their clientele sign up to lending agreements, but as a borrower could do that on their own it makes much more sense that brokers offer advantages to working through them. And some of these advantages and benefits include: being able to hone in on cheaper deals that are available, compare the different types of interest rates on the market to find the most affordable…
Mortgage brokers are a type of financial expert that specialise in comparing interest rates, evaluating the differences between home loan terms and helping their clients to secure the right type of mortgage for their needs. Although their services can differ depending on the experience and expertise of the broker, their features are fairly similar – so here’s a closer look at the types of services a mortgage broker provides. Interest rate comparisons Possibly the most popular type of service offered by a mortgage broker are interest rate comparisons. These tasks are fairly technical and will rely on the broker’s ability to compare the key differences between banks and their rates of interest. Although most rates will be governed by the Reserve Bank of Australia – lenders are still free to keep them as close to these guidelines as they want and a good broker should be able to separate the fairest from the extortionate. Re-mortgaging A commonly overlooked feature for those that already have home loans is the ability to re-mortgage for investment purposes or to get a cash boost. By doing so, the potential to save money can be very substantial and fortunately, the majority of home loan brokers will specialise in this type of service. These specialists should be able to approach banks and have them propose fresh terms, or even get in touch with other lenders to see if they would be willing to offer re-mortgaging options to their client. Loan negotiations In some cases a particular loan might seem beneficial, but may include any number of unwanted terms and conditions. In these cases the mortgage might become undesirable, but as some feature exclusive deals and benefits, it can often be worth hiring a mortgage broker to help to negotiate these terms with a bank. To do so they will typically propose fresh terms that still benefit the lender, without taking as much of a financial toll on the borrower.