When it comes to financing that critical asset such as a motor vehicle - or machinery that generates your income, there are a myriad of hurdles to consider if we are not “in the know”.
Interest rates can be a key indicator of a need for knowledge and can range from 7% to 15% upwards, to finance that car or machine. Sometimes a low interest rate may not necessarily be an accurate or fair indication of the risk involved or the end result - which is the total cost of the asset purchased.
Sometimes it pays to sit down and consider what is best for us:
· A short-term loan may create undue financial pressure, whilst a longer loan term aligned to the lifespan of the asset is often the best fit.
· Conversely a loan term that exceeds the life of the asset can result in a total cost far exceeding the price tag on the front windscreen.
· Tying all our borrowing to our bank might sound like an easy option, but having some of our assets financed elsewhere can reduce the risk of losing our home if the business experiences difficult periods - such as the Covid-19 crisis we are currently experiencing.
So, what are we saying here?
We don’t have to do everything ourselves – at Thompson McNeill we have a number of contacts who can sit down and guide us through a process that takes into account your situation and needs, to get you an interest rate that you deserve and a loan term that is affordable and structured correctly.
Give us a call on (03) 281 8605 or email: