19 May

The Matrix

As Morpheus from the movie series Matrix said:

"There is a difference between knowing the path and walking the path."

At Laurentide, we like to think that we are both!!

What has this got to do with Finance?

Nearly every financier we now deal with has what they call a “Lending Matrix”.

This is a set of guidelines that determines if we can get our clients an automatic approval or if we have to jump through a few hoops in order the get the loan approved.

Such Matrix criteria can be as follows:

Time in Business

Asset Backing

Age of goods

Dealer or Private Sale

Amount Financed

Type of Goods

Previous Credit History

Type of business

Depending on where you sit with these criteria we can “walk the path” of least resistance and have you approved usually in 24 hours.

As an example, I recently had a client who required a new truck for his plumbing business along with some equipment to go on the truck. We had both applications approved within 24 hours with two separate lenders, using two different Matrix. The client was a homeowner, with good credit and in this example all goods were new coming from a dealer.

Another example, is a non-home owner who required a new vehicle for his business, he was GST registered for 2+ years, with no adverse credit. We were able to get this approved with no financials as long as the client was happy to put in a 20% deposit which in this case they covered with a trade in and a small cash deposit. Once again the approval was through in 24 hrs.

The rates for these Matrix deals are more often than not slightly better than the non-Matrix applications. In the banks reckoning there is less risk in these types of transactions and less time taken to approve these loans than those that don’t fit the requirements and therefore they offer better rates.

So next time you have finance requirements for equipment or vehicles (including trucks) give Laurentide a call. We are experts in getting the best deal for your business.

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