Getting a pre-approval from a financing broker like Patron West is always the best choice to ensure you can take advantage of deals on equipment, vehicles, trucks, and anything else your business needs. It lets you shop around wherever you want and keeps you from being locked into limited finance options from suppliers.
Pre-Approvals With a Finance Broker Can Get You More Capital
When you go to a bank for all of your borrowing needs, you’re putting all your financial eggs in one basket in more than one way. Not only do you owe the bank money for all of your business expenses, putting your assets at risk if you should default on any one payment, but the bank is only willing to give one business so much capital.
When Patron West shops for pre-approvals for your business, we can find out what you qualify for with multiple lenders. This way, if you find more than what you were really looking for after shopping around, such as an excellent price on a piece of equipment you know you’ll need in the future in addition to what you are looking at purchasing, you’ll have access to the cash you need to take advantage of that deal.
Put simply, depending on your credit and other factors, we may be able to get you more money than the bank. We can also find you a deal with a smaller down payment than what the bank may expect you to come up with. This is an especially important advantage for businesses such as construction and trucking companies that need to purchase high-ticket items for contracts that they may not be paid for right away or the ‘up and running’ costs are high for items like insurance, registration, delivery, repairs or upgrades. Reserving cash for
Finance Options With Dealers Can Be Limited
Unless a dealer is already using Patron West, your finance options could be very limited. You may only be able to get access to favourable interest rates with the purchase of a new vehicle. Used vehicle financing is usually more expensive than buying new because the manufacturers finance companies doesn’t want you to buy used so all the incentives are on the new gear. With a pre-approval through Patron West, you know your interest rates and buying power in advance, giving you the power to negotiate and purchase on your own terms rather than the dealers.
Convenient and Fast
If you are pre-approved for financing through Patron West, you can take advantage of deals when they come up. Pre-approvals are generally valid for up to 60 days, giving you lots of time to shop around if the first few options aren’t quite what you are looking for. With a pre-approval, the needed financing can be secured instantly without a waiting period in which someone else could snap up your deal.
Your Credit Rating is Safer With a Pre-approval
If you go from dealer to dealer looking at various financing options, they have to do a credit inquiry to see what you qualify for. This can look bad on your credit rating if multiple lenders are hitting it. This means that the next time you go to get financing, you may be paying higher interest rates or even denied financing because of the hit on your credit score. You may have just been shopping around, but a potential lender instead sees a business that is trying to get access to multiple credit sources. With a pre-approval, this is not a concern.
If you want to find out more about the pre-approval process or equipment financing options for your business, contact us and we’ll answer your questions right away.