According to the media reports it is stated that for those within the “in the know” or “well-prepared group” has really not been affected with equipment finance from the royal commission banking. It is mainly equipment financing and the business working capital company that has effectively made a positive impact on the businesses.

Let us provide you the details of the question above where the following is relevant.

Equipment Finance up to $500,000:-

Within the fast track system without the need for any financial information most of the equipment finance up to $500,000 is now being automatically approved. They are based on the following 3 criteria:

Businesses that have been operating for 2 years having a clean credit history and the principal is a property owner, new and used equipment up to $150,000 being vehicles and acceptable equipment is approved.
On the similar criteria up to $500,000 where the new debt replaces an existing finance commitment this amount increased and of the prior loan which is about to or has just concluded, new payments are no greater than 125%.

For a significant amount of equipment finance, this style of matrix or behavioral lending is now accounting and they are instantly arranged.

Equipment Finance over $500,000:-

Traditional finance assessments need to be done for the individual requirements over $500,000 or which do not suit the matrix policies.

For 30 years this is the way traditional equipment finance has been done and still is for bulk limits or larger assets.

The royal commission has had some effect where the lenders are a little more cautious or more detailed in their assessment in this space or they may be seen later to have got it wrong with the increased paranoia. It still results in good commercial approvals with the well-prepared submissions with the right level of detail but they would be taking a few more days to get a positive outcome.

With the shortage of good experienced commercial equipment finance, credit teams within the primary banks and financiers are the more challenging issue that lies here.

In reality, we are an ever-growing population with many of the old school experienced equipment finance analysts having to wither retired or some years ago became capable equipment finance brokers as this is a specialist is with the specialist skills.

Little to "full assessment" experience is being provided to up and coming credit officers in a world where the massive majority of equipment finance transactions are assessed under these matrix programs.
The remaining experienced credit teams are increasingly placed under pressure which often results in delays on significant submissions or over-conditioned approvals to outright declines if being assessed by more junior inexperienced credit analysts as equipment asset value increases.

The value of the capable equipment finance brokers or equipment financing & business working capital company who understands the credit process recognizes the level of information required from the outset, chooses the most appropriate lender, communicates well in lender terms as well as respectfully but robustly argues the merits and mitigants required for maximizing the desired outcome including accelerating the process for the client really increases within this landscape.

About the Company: Trust Capital is a National Equipment Financing & Business Working Capital Company. We provide all-around financial solutions at competitive rates. The most convenient way to get your business needs fulfilled.

Website: www.trustcapitalusa.com