A business had secured a new contract that was due to start in a little over a week.
There was just one problem: they didn’t have the excavator they needed to do the work. The right machine had been identified. It was a $250,000 excavator that matched the requirements of the contract, and the dealer could have it ready within three days.
The machine wasn’t the issue. The challenge was getting the finance approved, documented and settled quickly enough for the business to start the contract on time.
The business had secured the contract and knew exactly what equipment it needed. The excavator was available and the dealer could prepare it quickly. The risk was timing.
With the contract starting in just over a week, there was very little room for delays between applying for finance, receiving approval, completing the loan documentation and settling the purchase.
For the business, getting the finance approved wasn’t enough. The entire process needed to happen quickly enough for the machine to be delivered and ready for the first day of the contract.
The first step was keeping the application simple. Rather than asking the client to complete lengthy forms or navigate an online portal, the required application information was collected during a 15-minute phone call.
Only three supporting documents were requested:
The application was then submitted to the appropriate lender within the hour, using the best indicative terms available at the time. Rather than sending the application to multiple lenders and waiting for different responses, the focus was on identifying the right lender for the client’s circumstances and going there first.
Approval was received within 24 hours.
From there, the focus shifted to documentation and settlement. The Tax Invoice was requested from the dealer and loan documents were prepared in-house on the bank’s behalf to remove any unnecessary delays in the process.
Once the dealer’s tax invoice was received, the client was able to sign the loan documents electronically within an hour.
The documents were signed after the lender’s 1pm same-day settlement cut-off, so settlement couldn’t be completed until the following morning. Even with that timing, the finance settled the next day and the excavator was delivered in time for the contract start date.
The $250,000 excavator was approved, documented and settled within three days. And the business was able to take delivery of the machine in time to begin its new contract as planned.
There was nothing particularly complex about the finance itself.
The result came from keeping the process moving at every stage: collecting the information efficiently, requesting only the documents required, selecting the appropriate lender from the outset and managing the paperwork through to settlement.
For a business with a contract about to commence, that meant one less thing standing between them and getting to work.
Sometimes the value in using a broker isn’t finding a complicated financing structure. It’s making a straightforward transaction happen without unnecessary delays.
In this case, the excavator was a standard $250,000 equipment purchase. The difference was in how the application was handled. The information was collected in the way that worked for the client. Only the necessary documents were requested. The application went to the appropriate lender first time, and the paperwork was actively managed through to settlement.
Speed isn’t luck. It’s a process.
For businesses buying equipment against a tight contract or delivery deadline, having that process managed properly can make a meaningful difference.
When you’ve secured the contract and need the equipment to do the work, waiting weeks for finance isn’t always an option.
At Ironbark Group, we can help you work through the equipment finance process, from understanding what you need to fund through to application, approval and settlement.
With access to a wide network of lenders and more than 200 years of combined experience across our team, we can help keep the process moving and identify the finance options that may suit your circumstances.
Need equipment to get a contract underway? Talk to Ironbark Group about your finance options today.
The timeframe can vary depending on the asset, lender, application and the borrower’s circumstances. Some straightforward equipment finance applications can be assessed quickly when the required information and documentation are available. More complex applications may take longer. Having the right information ready from the outset can help avoid unnecessary delays.
The documents required will depend on the lender, the type of equipment and your circumstances. They may include identification, financial information, consent forms and information about the asset being purchased. For some straightforward applications, the documentation required can be relatively limited.
Potentially. If you’ve secured a contract and need to purchase equipment to fulfil it, the contract may form part of the information considered as part of the finance application. The lender will still need to assess your overall financial position, the equipment and the proposed facility.
A broker can help manage the application process and coordinate information between you, the lender and the equipment supplier. This can help reduce unnecessary back-and-forth, particularly when there is a tight deadline. The actual approval and settlement timeframe will still depend on the lender and the circumstances of the application.
Not necessarily. Applying with multiple lenders isn’t always the fastest or most appropriate approach. The lender that suits an application will depend on factors such as the borrower, asset, loan amount and purpose. Identifying the appropriate lender before submitting the application can help avoid unnecessary applications and delays.
Once finance is approved, Ironbark Group will request the final Tax Invoice on your behalf to allow Ironbark Group to prepare loan documents for signing on behalf of the lender to speed up the process. The exact process varies between lenders. Once all required documents and conditions are satisfied, the lender can settle the finance and the equipment supplier can arrange delivery.
