What is an equipment finance broker, and how has a broker helped your business?
An equipment finance broker may not be the first person an entrepreneur seeks out to add to their professional network. But, when an entrepreneur needs financing to help secure equipment, a finance broker can significantly help a business.
To help small business owners better under the role of an equipment finance broker, we asked business leaders and entrepreneurs about how a broker has helped their business.
Here are seven definitions of an equipment finance broker, and how they help small businesses.
- Offers Various Lending Options
- The Middle Man
- Presents Clients In the Best Light
- Honest To The Core
- Promotes Business Growth
- Industry-Specific Knowledge
- Leverages Existing Relationships
Offer Various Lending Options
An equipment finance broker, like any business broker, is able to offer various options. If you are a company in the construction rental business or similar, you tend to have equipment financing needs 3 – 5x per year. An equipment finance broker allows you to work with one company, but have various lending options. Typically a lender will have a certain amount of financing exposure they’re willing to lend. A broker can “use up” this exposure with 1 lender and move onto another. The benefit to you is that you do not have to introduce yourself or learn new lender’s requirements. The equipment finance broker takes care of that for you.
Carey Wilbur, Charter Capital
The Middle Man
An equipment lease broker is the middle man that develops relationships with manufacturers as well as with banks and other lenders to secure loans for small businesses. A broker deals with businesses that need equipment, but might not be able to afford it, or with businesses that only need equipment for a short time. In the early days of our company, we relied on brokers to help us qualify for loans on equipment that we otherwise wouldn’t have been able to afford. Our company has grown to a point that we are a fully operating dental laboratory.
Henry Babichenko, Stomadent Dental Lab
Present Clients In the Best Light
There are many reasons why a business would consider hiring a finance broker. When there are tough financial times that a business owner faces, a capable broker will have the experience, knowledge, skillset, and influence to present the client in the best light and be able to negotiate the best outcome for the client in terms of financing.
Chris Dunkin, Portable Air
Honest To The Core
I only know two equipment finance brokers, and both share the last name “Wilbur” (hint: they’re the owners of the company website you’re on right now). In the last few years of knowing them, I’ve been inspired by their honest, transparent, and long-term stance on developing relationships with people. The way they treat customers is the foundation for why they’ve been in business for more than 40 years. You can’t have longevity without honesty. At the core, any good equipment leasing broker will be upfront with what they can and can’t do for you and your business.
Brett Farmiloe, Markitors
Promote Business Growth
An equipment finance broker helps business owners to acquire capital required for the purchase of work tools, equipment, and machinery for running their businesses. In other words, they promote business growth by helping companies to access a wide range of financial arrangements crucial to the acquisition of capital equipment. Our equipment finance brokers provide top-notch financial advice that has made a huge difference in how we make certain equipment finance decisions. They offer advice about insurance policies, vehicle and machinery equipment, and more.
Chioma Iwunze-Ibiam, Time Doctor
Industry-Specific Knowledge
Equipment finance brokers are experts who help businesses find the right financing options for their equipment, help to get a good rate for the financing and help alleviate the task of submitting various applications to numerous companies in order to get the best results. Many equipment finance brokers specialize in certain industries, meaning you can find some excellent brokers which will cater exactly to your needs. This allows you to discuss your options in-depth with them, and they’ll likely give you relevant insightful advice on the different routes to take for your industry specifically.
George Birrell, TaxHub
Leverage Existing Relationships
As an equipment finance broker, we regularly provide funding to small businesses so they can buy and lease equipment. Equipment brokers leverage existing relationships with manufacturers and lenders to provide businesses with multiple loan offers. They make money by brokering the deal, typically taking profit in the form of commission or a percentage of the loan.
Many small companies cannot afford to buy expensive equipment outright. For these businesses, it makes more sense to pursue financing to avoid using up cash reserves. Making regular, scheduled payments over time can be a much more affordable option for some companies than paying out a large lump sum all at once.
Nishank Khanna, Clarify Capital
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