6 reasons why you should use a truck finance broker
If you are purchasing a new or used truck and want to finance the purchase, you are often given a couple of options, talking to a bank, or talking to a truck finance broker. It can be a tough choice, if you are new to financing, as to which direction to take.
A truck finance broker is there to help you get the best financing for your new or used truck. They will negotiate with a range of lenders to obtain financing on your behalf. Your broker will gather information from you in order to determine which financial institution is likely to approve the funds required. After the loan is approved and the transaction settled, the broker receives a commission from the financier which provided the loan.
So, what are the benefits of finding financing through a broker, over the other methods?
1. Experts at negotiating complex transactions
A finance broker has a lot of experience negotiating and understanding every aspect of the loan. They know what information finance institutions are looking for when assessing complex loan transactions. Sometimes, using a finance broker can make the difference between whether your loan application is accepted or declined. This is because finance brokers have the experience and knowledge to create the best application, including what information to provide and how to present the application.
Some lenders may also have over the top or difficult conditions which could be prohibitive. Your finance broker can negotiate these conditions away, providing you with a better outcome.
2. Diversify a client’s credit risk
If your company has engaged in multiple loan contracts with one lender, your ability to borrow and grow your business could become more difficult. It is easier for you to reach your peak funding limit if all loan contracts are with one lender.
Your finance broker is the perfect place to go to manage all you loan contracts. They will establish a long-term relationship with you. In doing so they will place deals with other finance companies over time. This then facilitates your credit history with a range of financers, allowing you to acquire further funding for trucks in future.
3. Around the clock access
You will always have access to your broker’s mobile number, office number, and email. This allows you to have access to your broker round the clock. Often, Brokers will take calls outside of office hours and on weekends. Having the ability to access your broker after hours is beneficial if you are looking at trucks over the weekend and are seeking funding advice.
4. Specialists in particular fields of finance
You will find that most finance brokers specialise in a particular field of finance. A Home Loan Broker, for example, will specialise in home loans, while an Equipment Finance Broker will specialise in truck and heavy equipment finance. By specialising, Brokers gain experience in a particular field, allowing them know all the tricks for applying for financing within it. This also allows them to build contacts in the industry to keep them up to date with any policy changes.
5. Access to private funders
A finance broker has connections with lenders that goes beyond the big four banks, this includes Private Funders, who exclusively lend money for trucks and heavy equipment. There are some specialised deals which major banks would not consider, whereas specialist private funders will. These deals include:
- Credit impaired customers
- New start businesses
- Specialised goods
- Complex transactions
6. Develop long term connections
For many Finance Brokers, they are a stakeholder in their business. This means they will stick around in the long term, developing a close relationship with you and your business. The broker you are working with will know your history, and your goals, so have the knowledge to best assist your business. Your broker is then able to structure your funding requirements to maximise your access to credit and grow your business.
About ASA Finance Group
At ASA Finance, we specialise in getting our clients the best financing deals for trucks, trailers, heavy equipment, and cars. With over 18 years’ experience in the financing industry, we know how to get the right deals for our clients, designed with their needs in mind. Give us a call and see what we can do for you.