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NGExpert financial copywriter
Everybody knows there is strength in numbers, which is why it makes no sense for Canadian businesses seeking equipment finance to do so on their own.
Page written by Chris Godfrey. Last reviewed on July 25, 2024. Next review due April 1, 2025.
Instead of losing time and opportunities chasing funds individually, working with an equipment finance broker can give businesses access to dozens of lenders and immediately multiply their chances of success.
Equipment finance brokers are lending hubs for businesses and funding providers. They connect businesses seeking funds for new equipment with lenders who can provide the cash. Experienced brokers save businesses from the hassle of going door to door seeking loan approvals and will usually have a large roster of lenders they work with, as well as relationships with equipment suppliers who can deliver the plant, machinery and equipment that Canadian companies need.
Some brokers will also have access to other funding for businesses, such as working capital, asset-based lending, unsecured business loans and more.
Equipment finance and loans are specialist areas with differing rules of application and requiring deep knowledge of the sector from the lender. Canadian SMEs seeking funding without the support of an experienced equipment finance broker may find themselves forever searching and making applications to lender after lender without success.
The delays this can create could cause them to lose revenue and leave their business vulnerable to competition. Alternatively, working with an equipment finance broker is like going to a one-stop shop – clients gain fast access to equipment loans from a wide range of lenders, can draw upon a host of existing finance relationships to find the best deals, and receive valuable industry insights and tips that can promote their business growth. In short, equipment finance brokers can make it easier, faster, and cheaper for Canadian businesses to get the equipment they need.
Let’s explore these benefits in more detail:
The best equipment finance brokers can do more for your business than just help to fund your equipment purchases, they can also bring other types of essential funding to your door. These additional sources of cash can help you to bridge gaps in cashflow, purchase commercial property, speed up your payment cycle, even bring in vital equity investment. The fact is, almost all businesses need to borrow to grow. The best brokers can advise you on the type of funding you need for the transaction you are considering, and more importantly, know exactly where to find the funds you need.
| Working capital | Cash to cover dips in cashflow – use it to pay for rent, salaries, energy, inventory, and more. |
| Small business loans | Work like regular bank loans, use them for many different business purposes. |
| Asset-based lending | Use the business assets you already own – such as plant and machinery – as collateral for a new loan. Make your hard assets work harder for you. |
| Unsecured business loans | Give your business the funds it needs without providing collateral. |
| Secured business loans | These are typically larger loans that use your business assets, such as property, as security for the loan. Often the cheapest type of business finance. |
| Invoice finance | Stop waiting 30, 60, 90 days or more to get paid on invoice. Receive up to 95% of the invoice value within one or two days of issuing your bill. |
Top brokers will have a large and varied roster of business relationships – lenders, analysts, investors, etc – who they can reach out to not just for capital to cover your equipment purchases, but also to help you fund and grow your strategic ambitions. These relationships can often bloom into long-term partnerships for organisations that reveal strong future potential – providing continuous access to a deep pool of funds, expert advice, and valuable introductions.
Experience is everything in business. Organisations that are seeking an equipment finance broker to help them achieve their plans should consider each potential broker’s experience profile and their service merits – things like how long have they been in business, what services do they provide, what do their customer references say, how deep is their industry knowledge, do they have an international footprint? The stronger they are in these areas, the more beneficial they will likely be to your business.
The best equipment finance brokers will invest time and effort to help your business grow. After all, it’s in their interest to do so. In the first instance, this means advising you on the best types of finance for the equipment and tools you wish to obtain, then securing funding from lenders at the best rates and on the most efficient terms. In the second instance, it means giving your business the support it needs for sustainable growth – such as expert advice on vehicles and machinery, insurance policies, maintenance agreements, equipment valuations, supplier introductions, and more.
Equipment finance brokers work with many types of business and across every type of sector. They are at the heart of Canadian commerce 24 hours a day. This means they have access to unique industry insights and can advise their clients on trends, changing regulations, the most efficient types of equipment to buy, and what types of loan are best for each client’s specific purposes.
Give your business the equipment it needs to grow without the hassle of going it alone. Register with Swoop to secure top-tier equipment broker support – get the best equipment finance and access to the widest range of other business loans today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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