Research is a critical part of any financial transaction. However, when it comes to money matters, many of us assume there’s little difference between financing companies or can shy away from asking the types of questions needed to make an informed decision.
When you’re searching for a financing company, it’s important to make sure you’re working with the right people. And that requires asking questions to glean as much information about them and their processes as possible.
Here, we discuss a number of questions you should ask a financing company before signing on with them. This will help you to get an idea of how the company works and whether it’ll work for you and your business.
What is the Average Turnaround Time?
A company that has a timely process for evaluating applications shows that they have an efficient process in place and that they are respectful of your time. More than that, it shows that they understand the strategic importance of a streamlined approach to get you access to the funds you need quickly.
Knowing what information you need to provide in order to apply for equipment financing services will be necessary should you decide to move forward with a financing company. It also allows you to see how straightforward the process will be.
As business owners ourselves, we know that filling out a mountain of forms and paperwork just to go through a seemingly unending wait time to find out if you’re approved is not the best use of your time. We only ask for what’s necessary to get you access to the funds your need as soon as possible.
It’s always essential to understand a company’s experience and their credentials. Many companies may offer deals, but if they don’t have the knowledge and experience necessary, it could end up costing you.
In addition to asking about qualifications, spend some time looking up the company on review sites. Arming yourself with this knowledge can give you an idea of whether a company seems too good to be true or actually is too good to be true.
Can I Purchase Either New or Used Equipment?
Many business owners are operating under the impression that they can only finance new equipment. In fact, we listed it as one of the common equipment financing myths. As we pointed out in that blog post, while some lenders are reluctant to take on financing for used equipment because of the perceived idea that the risks are greater, not all lenders feel that way, and we here at WiseCap certainly don’t.
Throughout the supply chain disruptions over the past few years, used equipment was often the best and sometimes the only solution. Additionally, it can often make sense for businesses to go the used equipment route, just as for many people, it’s best to buy a used car rather than a new one. It all depends on the needs the client has and the circumstances they’re in.
While it’s not essential, asking whether your financing equipment has experience working within your industry can provide helpful knowledge. Different businesses have different circumstances, and working with someone who is familiar with industry jargon and news can be a significant benefit when you’re trying to grow your business.
The team at WiseCap is made up of business owners, and our experts come from a wide range of industries, including trucking, marketing, railroading, advertising, financing, accounting and law. This gives us practical knowledge of the needs of businesses that operate from a boardroom, a retail environment, a worksite or a combination of settings.
Lenders that take a one-size-fits-all approach are likely not working in your best interest. At WiseCap, we believe in tailoring situations to meet a client’s individual needs and circumstances rather than trying to fit a client’s situation into a predetermined product. Our consultative approach helps us to come up with creative solutions to your strategic financing needs.