When it comes to upgrading your business assets – whether it’s vehicles, equipment or machinery – asset finance is a great tool to help you move forward without a big upfront hit to your cash flow.
But like any form of lending, the process can get delayed or complicated if things aren’t lined up properly. Here are some of the most common mistakes we see – and how to avoid them.
1. Waiting until the last minute
A lot of businesses wait until the asset is already chosen or even purchased before sorting out the finance. This can lead to unnecessary stress, slower approvals or missing out on preferred lender options.
Tip: Reach out early – even if you’re just exploring. Pre-approval puts you in a stronger position.
2. Not having your financials ready
Lenders will typically want to see recent financials, especially for larger purchases. Not having BAS statements, tax returns or profit and loss summaries handy can slow things down.
Tip: Keep your accountant in the loop and make sure your documentation is up to date.
3. Choosing the wrong loan type
There are several types of asset finance – from chattel mortgages to finance leases. Picking the wrong structure can impact your cash flow or tax position.
Tip: Work with a broker who can recommend the best structure for your business and the asset you’re buying.
4. Overcommitting without planning
It can be tempting to upgrade everything at once, but it’s important to look at the overall impact on your cash flow.
Tip: Think strategically – finance can be a tool for growth, not just a way to get new gear.
5. Going it alone
Every lender is different – and comparing options on your own can be time-consuming and confusing.
Tip: A broker does the heavy lifting for you – comparing lenders, structuring the deal and guiding you from enquiry to settlement.
Thinking about a purchase? If you want your asset finance application to go smoothly, get in touch early. I’ll help you avoid the pitfalls and secure a solution that fits your business.