Machinery Finance in Simple Terms

Machinery Finance Brokers are vital to the successful running of many organizations and small businesses. Why are they needed?

You’d agree with me that finance is often a huge constraint to the objectives we all pursue. For example, you may have a great business plan, or, may even have a business that’s been in operation for years, but inadequate financing could be a frustrating, limiting factor to its efficient running or expansion.

What should a smart entrepreneur or business do?

It’s simply to seek better and viable alternatives. And, one of the best options is to use the services of a Finance Broker.

What are the major advantages of leveraging machinery finance? What does a broker do? What are the key machinery financing options?

Key Benefits of Machinery Finance

• You don’t need to part with large upfront money
• You’d have the chance of paying for the equipment with money it earns
• There are potential tax advantages
• You’re protected against inflation because of fixed repayments
• You’re able to choose from a wide range of machinery and suppliers
• Machinery finance gives your business an edge because you can ensure that you have all the right machinery, even those your less-informed competitors are unaware of

What’s Machinery Finance Brokerage?

A Machinery Finance Broker works with three groups: Those seeking machinery (who may not have the financing), the manufacturers, and the financiers (lenders). The broker connects the three and adds immense value to this connection, by helping all the parties involved in the attainment of their objectives.

Brokers foster relationships with manufacturers and banks, and businesses that may have a limited budget, yet who require machinery. They usually have a database of all three. They leverage marketplace research and cold-calling to put these deals together.

They often become experts in the machinery they recommend, as such they provide consulting services to those seeking the financing, and they ensure they businesses get the right machinery needed. They help them with the paperwork and in understanding the agreements and financing.

At the end of the day, the entrepreneur gets the machinery they need, the manufacturers sell or lease their equipment, and the financiers provide the fund and make a profit. Naturally, the broker gets a commission for the services rendered.

What are the options Machinery Financing Brokers facilitate?

Most offer a range of financing options, which involves boutique and major financiers. They arrange leases, hire purchase, and flexible tax-effective chattel mortgages. And, they cover a wide range of machinery. Examples include earthmoving and construction machinery, mining, vehicles, trailers, and trucks…

We have explored the benefits of machinery finance, what brokers do, and some of the options at your disposal. You’d agree that this is an incredible opportunity to take your business to a higher level.