Using a local asset finance company can offer several benefits, particularly for small to medium-sized businesses looking to acquire, upgrade, or replace equipment and machinery without tying up capital. Here’s a look at the primary advantages:
1. Personalised Service
Local asset finance companies often provide more personalised service compared to larger national firms. They can offer tailored financing solutions that match the specific needs of your business. This personal touch can also mean better customer service, as local firms may have a smaller, more manageable client base.
2. Understanding of Local Market Conditions
A local asset finance company is likely to have a deep understanding of the local market and economic conditions. This insight can be beneficial when assessing the viability and potential return on investment of financed assets in your specific area.
3. Faster Decision Making
Local companies typically have shorter approval processes and can make faster decisions regarding your finance application. This is often due to less bureaucracy and a streamlined decision-making process, which can be crucial when you need quick access to finance to capitalize on business opportunities.
4. Flexible Terms
Local asset finance providers may offer more flexible terms than larger institutions because they can adjust their offerings based on local competition and demand. This flexibility can include more favorable repayment terms, lower down payments, or customised financing structures to suit seasonal cash flows.
5. Easier Relationship Building
Working with a local finance company allows for stronger relationship building, which can be advantageous for future financial needs. Having a good relationship with your financier can lead to better terms and priority service in the long run.
6. Support for the Local Economy
Choosing a local provider helps support the local economy. The money you spend on interest and fees stays within the community, supporting local jobs and potentially leading to more economic activity in your area.
7. Potential for Additional Support
Local financiers often have networks with other local businesses and service providers. They can connect you with other local resources that may help your business grow, ranging from legal advice to potential new customers.
8. Understanding of Compliance and Regulatory Issues
Local finance companies are likely to be well-versed in the regional regulatory and compliance issues that could impact your business. This expertise can help ensure that your financing arrangement complies with local laws and regulations, avoiding potential legal issues.
9. Community Involvement
Local businesses, including finance companies, are often involved in community initiatives and can provide sponsorship or support for local events and charities. Engaging with a local financier who participates in these activities can enhance your own company’s community profile and CSR activities.
10. Innovation and Custom Solutions
Finally, local asset finance companies may be more innovative in their approach to creating financing solutions. Being smaller, they might be more willing to explore non-traditional financing arrangements to suit unique business needs or to accommodate newer industries not typically served by larger banks.
In summary, using a local asset finance company can provide significant advantages in terms of personalised service, local knowledge, flexibility, and community engagement, making them a compelling choice for businesses looking to finance new or existing assets.