$195k Commercial Equipment Finance Allows Significant Easy Growth
CASE STUDY The Client was a medium sized Smash Repair business located in the Sydney Metropolitan area.
The client’s first commercial equipment finance transaction was for a new welder required to maintain accreditation with the largest Australian insurance company who provided their regular source of business.
2005: The welder cost $38,000 inc GST and finance was secured over a 60 month term with NIL residual from a well-known Australian Bank.
2007: A couple of years later, finance for a “Bench” was requested for $50,000 inc GST. Again finance was secured from an alternative Australian Bank over a 60 month term with NIL residual.
2010: Two cheap vehicles were financed to offer to customers as “loan cars” while their car was being repaired. These 2 new vehicles were $16,000 each and a 60 month term with 30% residual was arranged.The residual reduced the repayment and the rental fee charged to the customer easily covered the finance repayment of $63 each per week.
2015: A Spray Booth was purchased replacing the old run down one which lacked some modern features. The Spray Booth cost around $75,000 including installation and various tradesmen costs. Again an alternative funder was utilized.
Why we use different lenders for Commercial Equipment Finance Loans
By utilizing different lenders for each transaction, we avoid having too much finance with ONE funder. Funders do not like to have too high an exposure with one client, and become nervous when borrowings exceed a certain $$$ figure. This figure is normally around $200K.
Fast and Easy
For all these transactions the proprietor avoided having to provide fresh finance application details because I had all his details on computer. Fresh Income figures were required, however I knew who his Accountant was and their contact details, so just dealt with his accountant.
Most proprietors are busy at work and just want finance transactions to be “Fast & Easy”, and Redline Finance provides this for their clients.
How Redline Work
Redline Finance offer a 3 Step Fast and Easy Finance process Australia Wide. To enquire, call Mark on 0416 293 368 or Enquire Now using the form below, any time of the day or night.