Equipment Finance Broker vs Bank: Which Suits Your Business?

Your bank plays an important part in your day-to-day business banking: transaction accounts, and possibly an overdraft or line of credit to manage the highs and lows of cashflow. It may also finance a business purchase or commercial property, usually secured by real estate.

Equipment finance may not be something your bank manager handles every day, though. It's often referred to a separate equipment finance department, and some smaller banks, credit unions and building societies don't offer it at all.

Equipment finance (also called asset finance) is generally secured by the equipment being bought rather than by real estate, using products such as chattel mortgage, hire purchase or lease. New to the term? What is equipment finance?

Here are some reasons you might use a specialist equipment finance broker.

Knowledge and skills to assist you

Many equipment finance brokers have previously worked for an equipment financier or a bank's equipment finance department. Their day-to-day work is helping businesses fund equipment, so they know the products and the need for a fast, end-to-end process.

More than one financier looking at your application

With access to more than one equipment financier, a broker gives you one place to compare options, without you doing all the legwork.

Having more than one lender consider your application gives you options to compare on price, conditions and speed. The final terms are always the lender's decision.

Flexibility with application approval

Any one bank or financier can be fixed in its policies, depending on factors such as:

• The goods you need to finance
• The age of the goods
• Whether you're buying from a dealer or a private seller
• Your industry
• Your time in business
• Your equity in real estate and other assets
• The finance structure you need
• Your ability to provide financial information
• How the lender analyses financial data

If your application isn't one your bank is comfortable with, you may face higher repayments than necessary, extra conditions, or a decline. A broker who knows lender policies can help you approach lenders whose policies are more likely to suit.

If fast, low-fuss finance matters to you

Equipment finance brokers work with the pace of chattel mortgage, hire purchase and lease every day. Banks used to slower property-secured lending don't always move at that pace.

Many financiers offer short-form or no-financials applications for equipment purchases. A broker can help you navigate how these policies differ between lenders.

Not sure whether you'd qualify? Our No-Financials Quick Assessment gives a likely, maybe or unlikely read in a couple of minutes. It isn't an approval or a borrowing limit.

Choice doesn’t have to come at a cost

We don't charge customers a fee for arranging finance; the lender pays the broker. In rare cases there may be an upfront charge for a specific extra service the lender doesn't cover, such as an equipment inspection. Lenders may charge their own establishment fees, and government fees can apply depending on the finance type.
How brokers are paid.

From North and Central Queensland to our NSW office, we facilitate equipment finance applications for businesses Australia-wide, online and over the phone.

More about Broadlink's equipment finance.

Related reading: No-Financials Equipment Finance Explained · Business Car and Ute Finance