Our loyal clients Michael & Gloria, a New South Wales based transport client contacted us on a Wednesday in the middle of Victoria’s Covid 19 lockdown. They wanted to purchase a truck from a Private Seller who was based in Victoria. Michael happened to be in Victoria, however was leaving in 2 days and wanted to drive home in the truck.
After assessing the client needs and discussing the application requirements with several financiers companies, we were able to:
- gain an approval within 5 hours
- liaise with the vendor to provide the required documents
- facilitate an inspection on the asset
- Prepare & send Michael digital finance documents to sign while on the road
- Organise the finance company to pay funds to the vendor real time so they received the money within a couple of hours
All of the above was achieved in less than 48 hours, and Michael was able drive home with the truck, all before the weekend.
This was all in a time where approvals were slow (ANZ & CBA were taking 2 weeks to approve applications) and access to Victoria was very difficult.
After speaking with one of our funders, the lesser known Sonder Equipment Finance, they worked with us to provide a quick approval but more importantly had the processes to enable the client to digitally sign documents, digitally inspect the equipment and process payment to the vendor in “real time” so the funds cleared in a few hours.
While the interest rate may not have been as low as ANZ, it was still extremely competitive and Equipfin & Sonder made it happen. The opportunity cost of not being able to buy this truck while Michael was in Victoria, significantly exceeded the extra interest cost the client paid to use a quick, easy, modern finance company.
The scenario is a classic example of how the applicable interest rate is only one component of the decision making process when choosing a financier. We also need to find solutions that meet the financiers credit criteria, client time requirements and other variables such as location of assets.