Posted: Tuesday, 6 May 2025 @ 10:21
It's not so much the difference a day makes, but the difference 60 days makes when it comes to lease offers.
When a company receives an offer for a leasing agreement or hire purchase finance, it's understandable that they may want to take a moment to understand the terms, and perhaps to compare the offer to one from another lender. While it's prudent to make a decision in a timely manner, it's also sensible for the business owner to make sure they're happy with their offer and that it meets their needs.
That's why Rivers chose to give business 60 days to accept lease offers, almost double the amount of time most lenders allow.
Most lenders give you 30 days or less to accept a lease or hire purchase offer
Most lenders allow 30 days or less for applicants to accept a lease or hire purchase offer to encourage timely decision-making, mitigate their own risk, and help manage economic factors, especially fluctuating interest rates.
Risk mitigation
By giving a relatively short window of opportunity to accept the lease, lenders buffer themselves against economic conditions, market trends, and other factors that might change the borrower’s own financial situation from the point of application, and which would otherwise have altered the terms of the funding.
Interest rates and terms
One of the most prominent economic conditions likely to change is interest rates, which can fluctuate over time. A 30-day window helps lenders avoid locking in rates and terms that might no longer be favourable to them due to market changes.
Business viability
If the funding offer is based on a business's current financial situation, a quick acceptance ensures that the lease aligns with the business's financial standing at the time the offer was made.
Finance approval process
A lender's business is to lend money - not to hold onto it. So, after a funding application is approved, they typically want to move quickly to optimise their business goals. Prolonging the decision period can disrupt the lender's own financial objectives and timelines.
Why Rivers gives you 60 days to accept a lease offer
At Rivers we have considered our processes extremely carefully when it comes to all our funding solutions, from asset finance to short- and medium-term business loans. Central to those decisions has been careful due diligence, allowing business owners the scope to make informed decisions about their borrowing so they feel confident in their choices.
With lease agreements being designed to support business growth and development, we felt that taking the unique step to offer 60 days to accept a loan offer was prudent. That means that for up to two months our offer will stay exactly as it is, and notably there will be no change to interest rate, irrespective of the base rate.
The benefits of having 60 days to accept an offer include, but are not limited to:
Managing the purchasing cycle
When it comes to leasing equipment, there are a lot of moving parts to get in place to make the transaction work. Deliveries can take time, especially when equipment is being shipped from overseas, and manufacturers of large items may well want to know how you plan to finance a purchase. In that instance, having a lease agreement in place is extremely helpful, but our 60-day acceptance period is especially useful because it gives you breathing space to organise everything. If the delivery time is 30 days for example, a 30-day offer makes things extremely tight, but 60 days is ideal.
Customers have more time to evaluate
A 60-day period allows the customer more time to thoroughly evaluate the funding offer, compare it with other financing options, and consider whether the terms are sustainable for their business.
Better decision-making
With a longer period of time to assess the financial implications, business owners can make more informed decisions about their borrowing, considering repayment terms, interest rates, and fees.
Time for internal discussions
The lead time gives business owners ample opportunity to discuss the finance offer with partners, financial advisors, or other stakeholders before committing to it to ensure it's what they need and are able to repay.
Flexibility for business plans
Businesses may need time to finalise strategic decisions knowing that they have access to the funding they were looking for. A longer acceptance window provides the breathing space to plan accordingly.
Ability to shop around
With 60 days, the customer has the opportunity to look at offers from other lenders and determine whether Rivers is right for them. While we naturally want a customer to choose to work with Rivers, we also want them to feel confident and happy in their choice. For example, we have had customers who prefer the personal level of customer service they receive from our team, and we have customers who have gone to other lenders who they thought would be cheaper, but when they have had an opportunity to compare the details that's turned out not to be the case.
Fixed interest rate
When we make a funding offer, the details remain the same for the full 60-day period, regardless of what's happening in the wider market. That includes the fees, and crucially, the interest rate on the loan, so the customer knows exactly where they stand should they accept the offer.
If you would like to find out more about Rivers' funding solutions, you can follow the link below, speak to our team on 0204 553 7555.
Find out about Rivers business loans