Should you use bank or broker for your equipment finance?

Posted on Monday, February 6, 2017 - 10:30

Although non-bank lenders are more known in the mortgage sector, as it’s shown by the Third Party Lending Report for 2016, equipment brokers are beginning to be more sought, as well. People don’t seem to trust banks that much anymore, that is why brokers are gradually becoming more successful.

Does it matter from which one you get equipment finance? Isn’t it the same thing?

It does matter from which of the two you obtain finance. People started to rely on brokers because they are more trustworthy and, moreover, there’s a better communication between them. Banks started their downfall, and brokerage is on the rise as a consequence. Banks are often equated with uncertainty and financial loss.

We will give you a few reasons why you should use a broker instead of a bank.

Availability

It’s less likely that anyone will pick up the phone in a bank after the working hours, so your questions must wait to be answered. Most brokers can be reached at any given time and even during the weekends.

Close relationship

You cannot count on a bank that it will send representatives in order to give you advice on how to develop your business. Brokers take a personal interest in what they do. They are mostly servile people. First of all, they’re business owners themselves, so it’s much easier for them to fill up your shoes. They will give you personal pieces of advice, whereas a bank will never be concerned with how you manage your business.

Lower rates

Some banks may not be friendly when it comes to the interest rates. Brokers will carefully analyse your business, and together you will establish a repayment plan that works for both parties.

They can save you time

Due to the bureaucracy that permeates the banking system, getting an equipment finance can take weeks or even months on end. Brokers, on the other side, have all the information they need and they don’t require as many papers as banks often do.

Multiple choices

When you go to a bank for finance, they won’t give you a broad range of options for that type of finance, but brokers will. They will allow you to compare more offers and choose the one that you think is best for you. This is very important since you can choose packages that a bank wouldn’t even know.

According to this article, more than 50% of the population seeks help at brokers instead of banks. The percentage is constantly growing from year to year. People trust them because they can do research on the testimonials from previous clients. This way, there is no risk of being scammed or getting into a deal that is more damaging to one’s business than it is useful.

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