Why You Should Never Jump at the First Financing Offer
At Tundra Finance, we’re pretty well-versed in the finance application process. We understand what most lenders will require their applicants to meet, criteria-wise, as well as how the process itself can play out based on a range of factors. For instance, did you know that most lenders will want to see proof of your earnings for at least 11 months?
It’s not just your earning consistency to consider; it’s also the amount as well. Some lenders will only entertain applications from potential borrowers that turnover at least $100,000 AUD a year. Others might be more lenient, but if there’s one thing that we come across more and more often, it is people that don’t meet the criteria often being presented with unfair deals.
Why is this you ask?
Well, if you don’t meet the specified criteria, then the chances are that your potential lender might want to further reassure themselves that they will get their money back. Imagine for a moment that you are planning on applying for an unsecured loan based on your credit history and score. Plenty of lenders will consider your application – especially if you have a proven track record of meeting your repayments.
But will this be enough for them? In many cases we would have to say yes. But there are some situations when a lender might want to introduce their own clauses, or loopholes just in case you as the borrower fail to repay what you owe. And can you blame them really? What business wouldn’t want to secure its future by protecting its investments?
But if we’re honest, this is why rather than jumping at the first offer of a non-mortgage loan, you might instead want to rethink your opportunities. There’s a reason why we encourage our clients to avoid hurtling into the first offer and that’s because by doing so, you might not get to learn about other potential options out there.
And how could these be any different? Well, lenders might offer similar services, but they are their own entities. Some might be willing to go out of their way to protect their assets and investments, while others might be a little more easy-going. It’s the latter type of lender that we make a point of working with and that’s why our negotiation services can offer such great options.
So what’s our thought on jumping at the first sign of an approval? Well, why not hold off for a while instead? Most lenders will make their offers available for about 5 days and some will extend even longer grace periods to cater to your decision-making time. In that time, you could find several more options – some of which might be even more beneficial.
No matter how keen you are to secure your business financing loan, don’t rush in without the proper care and attention – or you could end up being forced to meet ridiculously unfair repayment plans well into the future.
Tundra - Experts in Business Finance
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