Irish Business Owners Should Not Be Deterred By Banks For Vehicle Finance

As the credit crunch continues, banks in Ireland are saying “no” much more frequently. This is even more problematic for businesses than for consumers. Though the government hopes the Irish economy will recover by mid-2013, a looming implosion of the eurozone is making that unlikely. When businesses hit a brick wall with banks, they should explore other avenues.

Many businesses require trucks to transport their products. However, banks are not providing car loans as easily as they once did. Approaching an asset finance company for an equipment loan may have a more positive outcome. Loans are available for new or used equipment and feature five-year terms. The equipment serves as security for loan repayment when using asset finance companies like Close Brothers Commercial Finance.

According to Adrian Madden, Close Brothers regional sales director, the interest rate for this equipment finance depends on the strength of the business and the deposit amount. The strength of the security for the loan also plays a role. If the money is being used as truck or car finance, the interest rate is usually less that it would be for specialized equipment.

Equity release loans are also offered by Close Brothers. This allows business owners to get financing for their businesses based on the value of specific assets owned by the company. If the business is trying to expand its fleet of trucks, those already in its possession may count toward the business equity, making it easier to get the desired funds.

Some businesses may qualify for an SME loan for car finance through the financial institution AIB. This funding carries a 4.4 percent interest rate. Non-qualifying businesses can expect to pay between six and seven percent interest. Going through a fleet management company or commercial car finance arm of a dealer could be even less expensive than this.