Interest rates are at historic lows and many businesses are keen to make the most of the situation by bringing forward investment in new equipment or looking to utilise the scenario to expand their equipment fleet or facilities now to be ready to quickly capture new opportunities as they emerge in the future.
But knowing that interest rates are low is one thing. Knowing how to make those low rates work for you and in your best interests is the more important issue.
Beware of ‘too good to be true’ offers in this time of low interest rates. Some equipment low interest rate loan offers may include higher fees and charges which make the total cost of the loan higher. It may be a low interest rate loan but not a genuinely cheap finance deal.
Fortunately, by using our services, you know your consultant is working in your best interests and will source you a genuine cheap equipment finance offer. You can also make use of our finance calculator to see your estimated repayments.
At Jade Equipment Finance, we always offer our customers the cheapest finance for equipment finance to suit their individual requirements. But we also offer a personalised service to structure their equipment finance deal to suit their objectives. And that’s where you can truly capitalise on low interest rates.
Before you react to the first ‘low interest loans’ ad you see, it’s wise to be across the detail.
- Different banks and lenders set different comparison interest rates for borrowers in different sectors. E.g. rates for home loans differ from business loans from car loans from equipment loans.
- Lenders set their rates based on how much they pay for their funds and how they assess the industry or sector they are lending to. That is, if a lender has little experience in your particular field, they may not have the knowledge or confidence in lending, and hence charge a higher interest rate. A lender that does operate in your sector will better understand your business and offer a better rate.
- Individual lender rates are based on their risk assessment of both the industry sector and the individual application.
- Sourcing a lender that specialises in your industry and lends primarily to business is essential to sourcing the cheapest interest rates. Whether it be medical or At Jade, we have experience across many industry sectors so we have the knowledge to assist.
- Negotiating with a lender for the cheapest equipment finance interest rates requires skill, knowledge of how they operate their business and some level of bargaining power to enhance your application.
Jade Equipment Finance has the experience, knowledge and contacts to assist you. We are accredited with a broad mix of banks and lenders, many are available only to brokers, so our consultants will know which lender will be offering the cheapest interest rate finance for your sector.
Structuring the Machinery Deal
Making the cheap interest rates work for you comes down to how you structure your finance contract. That is, what type of commercial equipment finance product will give you the greatest benefits in the long term, how long you want for the loan term, how much you would like in the balloon or residual, having a monthly payment level that does not put undue pressure on your cash flow while minimising capital outlay.
Unfortunately, not all banks and lenders are amenable to being flexible with loan terms and conditions. But your Jade consultant knows which lenders will be the most flexible and can handle the process on your behalf.
You may want to capitalise on cheap interest rates by either:
- Reducing the monthly repayment to support your current and predicted cash flow OR
- Electing for a higher repayment amount with a shorter loan term to pay out the loan sooner for strategic purposes OR
- Reduce monthly repayments by increasing the balloon or residual and effectively deferring a larger portion for payment at the end of the loan term.
Speak with your accountant as to which commercial finance product and which loan structure will best support your financial objectives and then your Jade Equipment Finance consultant can negotiate the deal you want with the lender.
At Jade Equipment Finance we are committed to always sourcing the best interest rates and the cheapest equipment finance deals, despite what the general interest rate market is doing.
To discuss a genuine cheap interest rate equipment loan, call Jade Equipment Finance 1300 000 003 and have an initial discussion with one of our consultants.
