Pre-approved loans are an extremely useful way to source loans and finance and the cost in terms of interest rates and charges are in line with post-purchase loans. There are many solid reasons as to how and why applying for pre-approved finance can be of significant benefit. Securing the finance before sealing the deal is very common practice for both personal loans and business finance.
Jade Finance offers pre-approved finance across our portfolio and we explain why so many of our customers are taking up this service when seeking loans and finance.
Advantages of a Pre-approved Loan
A pre-approved loan is simply a loan which has been applied before, the application processed and a loan offer made by a lender before the applicant has made a purchasing commitment. Loan applicants will typically have an upper figure in mind of what they intend to spend on the goods and that is used for the purposes of applying for the loan.
It is an extremely helpful process for a number of reasons:-
- Allows buyers to know their buying power as in what they can afford to purchase before starting to consider makes and models.
- Provides buyers with confidence when negotiating buying prices with sellers and may provide a great bargaining chip.
- Allows buyers to save time by only considering those goods which are within their budget. Avoiding a situation of making a commitment to purchase say a car or boat which is outside their ability to repay a loan on. It also saves the embarrassment of having to renege on a deal if a loan application is rejected.
- Allows buyers to commit to a purchase on the spot and avoid the risk of missing out on goods which are in short supply. Currently many markets are suffering supply issues due to the computer chip shortage and from the flow-on effects of the COVID-19 situation. Some makes and models of motor vehicles, construction equipment and other goods have been experiencing delayed deliveries. While the boat and caravan markets have been experiencing shortages due to the spike in demand.
- Allows buyers to have a firm loan offer to compare if made a finance offer by a dealer or seller.
As pre-approved loans are processed in advance of the purchase commitment, they do have an expiry time frame. There is no obligation involved in applying for this type of finance. If you change your mind and don’t proceed with the purchase the loan offer simply expires at the time advised when the offer is made.
Interest Rates on Pre-approved Loans
Pre-approved loans are priced and an interest rate offered in the same way as if the loan was being processed after the purchase. Lenders set their interest rates for different markets with the official cash rate as a base and then factor in their own costs and consideration. The loan application assessment process include a review of the applicant’s credit profile.
So the interest rate for pre-approved and post-purchase loans and finance would be the same. This applies to both business finance and personal loans.
What goods can be financed with a pre-approved loan?
Jade Finance offers pre-approved loans for all our markets. This type of loan is available for the purchase of:-
- Private cars and business vehicles
- All types of trucks including light, medium and heavy duty
- Boats for private and business use
- All types of business equipment across a wide range of industries
- Commercial finance including business overdrafts
Range of Pre-approved Loans
Pre-approved loans are available across our loan and finance portfolio.
- Chattel Mortgage for business vehicles, trucks and equipment
- Leasing for trucks, vehicles and equipment
- Hire Purchase for business vehicles, trucks and equipment
- Rent to Buy for trucks and business equipment
- Secured Loans for Cars, Boats, Motorbikes and Caravans
- Unsecured Personal and Business Loans
- Secured Business Loans
To estimate possibly repayments on a pre-approved loan for the goods you are looking to purchase, use our loan calculators. Different interest rates apply to different loans and for private and business finance. When using the finance calculator, input the appropriate interest rate for the goods and the loan type.
Applying for a Pre-Approved Loan
The same application process applies to pre-approved loans as for post-purchase loans. Applicants can apply with one of our consultants over the phone or use our online resources to submit a quote request and apply.
There is nothing to lose but plenty to gain by seeking pre-approved finance prior to your next acquisition.
Contact Jade Finance 1300 000 008 to apply for a pre-approved loan for business or private purchases.
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.