COVID-19 has, of course, had a huge impact on our economy. The uncertainty that it has caused has led many banks to reconsider their position on equipment finance.
In March, obtaining equipment finance was relatively straightforward and usually pretty quick. This all changed with COVID-19. Not only did lenders become more careful and conservative, but they also found that much of their workforce either couldn’t work or would have to work from home. With increased scrutiny and reduced staff numbers, it is now taking 4 to 5 times as long to get a loan approved and settled as it did just a couple of months ago.
But lenders are still lending. They just want more information. Be prepared for your finance request. Elaborate on what impact COVID-19 has had on your business; what cash resources do you have to get through this, and what are your plans if the situation continues or worsens?
Banks are now seeking financial statements in increasing numbers. What story will last year’s financials tell? Is your tax up to date? Have you lodged on time? What about your bank statements? Are you still making regular deposits to your bank account? Has your turnover dropped? Have you sought relief from repayments?
We are finding that businesses still need equipment and those businesses with a track record, with cash behind them and a great understanding of the impact on their business, and the bank statements, BAS statements and tax records to back them up, are still successful in their requests for finance.
If you are considering upgrading your equipment, don’t waste time going from bank to bank. Talk to us about your needs, and your trading position, and we will work out the best lender for your specific situation.
We are based on the beautiful Queensland coast, between the Sunshine Coast & Brisbane and we offer a complimentary home loan broking service.
Make an appointment today for an obligation-free chat, to talk about what you need and how we can help.
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