Like any aspect of business, planning plays a vital role in finance and related car & equipment purchases. Too regularly, customers miss opportunities to buy an asset or miss out on a special price simply because they were not in a position to pay for the equipment quickly enough.
Organising a finance pre-approval at least a few weeks in advance allows for possible delays in the application process and ensures you are in a position to buy as soon as you find the right asset.
Finance pre-approvals are generally valid for about three months. Please don’t leave the pre-approval process until the last minute, as it not only puts unnecessary pressure on you but exposes you to the additional cost of missing out on the equipment and potentially paying a higher price.
True Example: A Customer enquired about finance, with no immediate intention to buy some equipment. The benefit of a “No-obligation” pre-approval was explained, of which he agreed, applied, and was subsequently approved. Initially, he was not going to buy anything for 3-6 months. However, three days after the approval came through, he met someone who was closing down their business, and he had the chance to buy the equipment at a 50% discount, but he had to pay for the equipment within three days.
Because he was already pre-approved, he was able to organise payment in the required time frame, subsequently saving approximately $30,000.