Asset finance pitfalls

Asset finance can sometimes be a complicated market to understand. While we are here to help you every step of the way, here are a few common issues that we come across that you might want to clarify;

I’ve had a great quotation!

Everyone can talk a good match but how many can play one? With asset finance you often see rates and figures banded about that seem too good to refuse, but be wary it is not a speculative unqualified quote just to get you hooked.

At Leasedirect we insist on gaining certain information up front before quotation to provide an accurate and realistic finance cost. We can then advise as to the likelihood of acceptance and in most instances the next option available without need to try and gain business by providing unqualified figures that only raise your expectations with no possible chance of meeting them. 

I’m paying back less than I’m borrowing!

Sometimes finance agreements incorporate large exit payments that attract interest throughout the term. Be careful that you have understood all payments that are to be made, any finance agreement where you are paying back less can’t be right! 

I think I own it at the end…

If you do require the asset after the end of the agreement, you need to clarify how this works and what you will pay.

Upon request we will officially document the end of term position to ensure that you know where you stand and can budget accordingly. 

Why should I use a broker, surely you are more expensive?

This is a common misconception as the market is far larger than you may think. Many of our funders only deal through large brokers like ourselves or are simply large foreign banks who have no ‘high-street’ presence or direct selling force in the UK.

That means we have financiers that are desperate to impress and hence can often provide better agreements than others.

How do we know this? Because we deal with most of them and hence can ensure that for your particular profile and equipment we are getting the best deal going.

At Leasedirect we offer our customers considerable cost and time savings.

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