When you need to acquire new equipment for your business or for personal use, you may want to consider getting financing for the acquisition. While you can save enough money over time to acquire the asset on cash basis, this is highly inconvenient. After all, most people are poor at saving. Secondly, you will have to stay much longer without the asset as you save. The better option, therefore, is to acquire the asset immediately through financing and settle the loan over time. If the asset can help you generate an income, it may be able to pay for itself, which means that you will not have to spend your own money on the asset. You can find an asset finance loan from a number of places. Since the terms and conditions offered by different financiers cannot be the same, be sure to do your own research before submitting your application. Below are some few things to look into when comparing asset finance loans:

i) Down Payment

This is the most crucial factor of consideration. Be sure to compare the down payment required by different financiers before making a decision. The deposit required is an important factor to consider because you may not have a lot of money to pay the deposit required. If you want to purchase a $200,000 asset, and a lender is demanding a 20% down payment, you will be forced to pay $40,000 as down payment, which you may not have. The ideal financier, therefore, should demand a reasonable down payment or offer 100% financing.

ii) Interest Rate

You have to compare the interest rate quoted by different firms and pick the most affordable lender. A high interest rate will increase the cost of purchasing the asset. Therefore, you have to compare the rates of interest quoted by different firms. It is also recommended you compare the processing fees and other charges that a firm may have. After all, some firms usually charge a low interest rate, but have high processing fees.

iii) Loan Limits

Most firms have a lending limit. This is the maximum amount of money they can lend or the maximum value of asset they can finance. If you are looking to procure an expensive piece of equipment, you should compare the loan limits quoted by different firms to ensure you find the most suitable financier.

iv) Repayment Period

When you procure an expensive piece of equipment, you will require a longer repayment period to settle your debt. The ideal financier, therefore, should offer a long repayment period to ensure the monthly payments are affordable for you.