Here are 5 tips you can follow when financing your next float.
Work Out Your Budget
Make sure your proposed loan amount is affordable to you. There’s no point in outlaying a high monthly loan repayment to get horse float finance if you cannot afford to enjoy the use of your new float. Many banks and lifestyle lenders have standard living expenses that are taken into consideration when processing their loans. Once you have worked out how much you can afford weekly, fortnightly or monthly it will be easier to determine how much you can borrow within your means.
Decide on the Loan Structure
One loan product may suit one person but not the other, so deciding on a loan product that is suitable to you is crucial. Factors to consider: Are you wanting to repay the loan sooner? Can you make additional repayments without penalty? Are you using the float for personal or business use? Should the loan be secured against the float or unsecured? – Learn more about secured and unsecured loans.
Choose a loan term to suit your budget. Most horse float loan terms range from 1 – 5 years with the ability to extend to 7 years. Repaying your loan sooner can mean repaying less in interest to the bank, however this can be dependant on the type of float finance taken. Ask your finance broker on what options are available to you.
Unlike motor vehicle loans where banks can easily value the car against the loan to reduce risk, horse floats are customised to suit the purchaser and lenders generally need to price match the float with similar floats on the market, so having supporting documents available will assist the lender in approving your loan in a timely manner.
Supporting documents most lenders are requiring include:
- Payslips or Tax Return
- Bank Statements
- ID documents
- Quotation or Invoice from the seller.
Unless you’ve decided on the horse float, gaining a pre purchase approval can be a good idea before you start shopping. A pre purchase approval can give you the flexibility and time in finding a horse float that’s suitable to your needs and budget.
Having a pre purchase approval can help you make a confident decision to purchase straight away should you find a horse float that’s ideal without having to apply for a loan.