What Is Societe Generale Equipment Finance and How Can It Help Your Business?

Societe Generale Equipment Finance (SGEF) is a leading European provider of asset-based finance solutions. SGEF provides off-the-shelf solutions as well as highly customised services to suit different industries, business sizes, and asset types. 

SGEF offers specialisms in construction, transport, healthcare, and agriculture. So, if you’re looking to upgrade your fleet, invest in cutting-edge medical tech, or modernise your IT infrastructure, it’s a lender worth considering. 

In this article, we’ll zoom in on SGEF’s asset finance offering, look at where it stands out and the alternatives you should consider before taking the plunge. 

What types of equipment can I finance with Societe Generale Equipment Finance?

SGEF offers financing options for a wide range of business-critical assets, including manufacturing machinery, medical equipment, IT hardware and software, commercial vehicles and fleets, construction tools and heavy equipment, agricultural machinery and renewable energy equipment.

By financing these assets, you spread the cost over time and keep working capital free for other uses.

Finance or lease? Choosing the right option for your equipment needs

With asset finance, your decision usually lies between finance and lease. Societe Generale Equipment Finance Limited offers both options, which lets you choose based on your financial strategy and operational needs.

• Finance: You pay for the equipment over time and get full ownership at the end of the agreement. This is ideal if you plan to use the asset long term.
  
• Leasing: You rent the equipment for a fixed period without ownership. This works well for assets that need frequent upgrades, like IT hardware or medical technology.

Each approach has its benefits. Financing provides long-term cost efficiency and potential tax benefits. While leasing allows greater flexibility, which suits industries with rapidly changing tech.

How Societe Generale Equipment Finance compares to traditional business loans

The major benefits of equipment finance (compared to traditional loans) is the typically lower interest rates. This is because the loan is secured against the asset you are financing, which cuts the risk for the lender. 

General-purpose, large business loans require broader credit considerations, especially if they’re an unsecured loan. The lender will want to see a solid financial track record. Plus, you’ll need a strong credit profile.

Equipment finance, on the other hand, is specifically designed to do one thing: Help you get the kit your business needs.

Is equipment finance better than a business loan for my company?

Equipment finance is a good idea if your business relies on expensive equipment. It allows you to preserve cash flow, take advantage of potential tax efficiencies, and avoid tying up your existing credit facilities. Since the loan is directly linked to the equipment, approval can also be quicker than a standard business loan. That said, you can only use the finance for equipment, not any other purposes.

Sector-specific financing: Tailored solutions for UK industries

SGEF specialises in sector-specific financing. For each of its target sectors, it offers specific, tailored solutions that reflect the unique needs of different industries. 

• Aligns repayment structures with industry cash flows:  For example, SGEF works with agricultural businesses to create repayment structures that match the unique cash flow cycles in farming.
  
• Offers sector-specific lease terms: In technology and healthcare, where equipment upgrades are frequent, leasing agreements may include “lifecycle management” (including maintenance and asset optimisation).
  
• Partners with industry suppliers: SGEF collaborates with vendors to provide financing solutions at the point of sale.
  
• Provides flexible end-of-term options: Construction businesses, for instance, can opt for equipment buyouts, upgrades, or extended lease terms based on project needs.

The impact of the Groupe BPCE acquisition on your financing options

In 2023, Societe Generale Equipment Finance was bought by Groupe BPCE, France’s second-largest banking group. Far from being a negative, the acquisition brings three advantages to UK customers, in particular:

• Greater financial backing: Enhanced funding capacity and stability.
  
• More vendor partnerships: Access to a wider network of international equipment suppliers.
  
• Continued support for SMEs and mid-cap companies: A commitment from BPCE to flexible and accessible financing solutions for medium-sized companies. 

How to apply for funding with Societe Generale Equipment Finance Ltd

You apply through an approved vendor partner or directly via SGEF’s UK website. Make sure you’ve got your financial statements, credit history, and asset details ready for a smooth application process.

Here’s what applying for finance with SGEF would usually look like:

1. Initial consultation: You talk about your needs with an SGEF advisor to determine the best solution.
   
2. Business and asset evaluation: SGEF eyeballs your financial position and the equipment you’d like to finance.
   
3. Quote and financing offer: You’ll get a financing proposal with terms attached.
   
4. Contract signing and asset delivery: Once approved, you’ll sign the agreement, and voilà: The equipment is delivered.

The benefits of vendor financing: A smarter way to acquire equipment

Societe Generale Equipment Finance Ltd partners with equipment manufacturers and dealers to offer financing directly at the point of sale. The benefits of vendor financing include:

• Faster approval: It’s already streamlined, which means faster access to essential equipment.
• Stronger supplier relationships: Financing aligned with vendor support ensures smooth integration and servicing.
• Customised finance options: Repayment structures designed to match the asset’s expected lifecycle.

Key factors to consider before choosing an equipment finance provider

When choosing an equipment finance provider, there are a few things you need to consider. The market is busy and you’ve got a lot of choices. Before making your pick, look at the following things:

• Industry expertise: A provider with deep sector knowledge can offer more relevant solutions (especially if you work in a highly technical industry).
  
• Range of finance products: This can mean flexibility and relevance in financing structures.
  
• Transparency of fees: Look for clear terms and no hidden charges.
  
• Speed of approval: Fast decision-making can be key to getting the funds you need in a hurry.
• Early repayment options: Some lenders offer penalty-free early repayments, providing added financial flexibility.

So before choosing Societe Generale Equipment Finance (or any equipment finance provider for that matter), take a look at alternative lenders like iwoca.

We offer unsecured business loans with no early repayment fees. But, unlike other unsecured loans, we’ll look at your business’s financial data to decide your application. You don’t need an extensive track record to work with us.

The money you borrow from us is more like a line of credit. So, like a credit card, you’ll get a limit and you can draw down money instantly. The cash can be spent as you see fit: To buy equipment or anything else your business might need. 

So before making your choice, look at all the options. Whether that’s a provider like SGEF, or an alternative lender like iwoca. 

If you think a more flexible, unsecured loan is the better option for your business, take a look at an iwoca Flexi-Loan. Apply for a Flexi-Loan today.