Getting equipment finance right

The hidden dangers of concentration risk Many business owners are blissfully unaware that financing equipment through their existing bank usually has that equipment debt “bootstrapped” to any other securities the bank may hold (such as properties and other owned assets within the business). This bootstrapping typically comes in two forms:- Cross Collateralisation Clauses (which sees all debt with the bank secured by all security held by the bank) General Security Agreements (GSA) which is the new term for the old Fixed and Floating Charges or Registered Equitable Mortgages (REM). Which … [Read more…]

Finlease partners with iSeekPlant to win our customers more work

Announcing a new strategic alliance with iSeekplant – the booming online web portal for plant hire companies to find work, matching you with those in procurement roles in civil and mining searching to find new suppliers and machines. iSeekplant has become the largest plant hire website in Australia in terms of traffic, with over 70,000 users per month, this site is fast becoming the place that people come to find suppliers and machines for major projects across Australia. At Finlease we want to make sure that all the machines in … [Read more…]

Interest rates at 30 year lows and getting easier to access

After 25 years in finance if someone would have told me a few years ago that a 7% interest rate was way too high I would have wondered which planet they came from. But that is the reality in today’s market. We are now seeing on a daily basis motor vehicles and equipment financed at interest rates between 4.5% and 5.5%. These rates are not the concoction of dealer based “sponsored” headline rates being supported by internal discounting on a “recommended retail”  machine price, they are main stream rates. But … [Read more…]

Even though your bank may say it is – Finance ain’t Rocket Science

After 25 years of funding equipment for clients, one thing is clear – the client has already approved the finance in their own mind, they know why they are buying it, what it will earn or save them and the risks involved. After all if it goes wrong think about the outcome: For the bank employee, it is a mark against their name as the loan has defaulted. For the client, it’s their personal guarantee on the line and an obligation to make good even if it means selling assets … [Read more…]

A pre-approval gives you added bargaining muscle.

  As confidence is returning in many industries, chances are you may find yourself ready to add or upgrade equipment. What can you do right now to gain the upper hand when the right piece of equipment comes along? More importantly, how can we at Finlease put you in a stronger position? As Mark O’Donoghue explains, “It’s always a good policy to get your finance pre-approved before you start sourcing equipment. This can potentially put you in a better negotiating position. So if you find yourself at a dealership or … [Read more…]

Finlease is venturing into exciting new territory.

At Finlease we’ve always been prepared to go that little bit further for our clients, and this year has been no exception, making inroads with some dynamic new industries. While Finlease has always been regarded as equipment finance specialists, we’re now making the finance easier in the Bus and Coach industry, helping to keep the wheels turning for some major operators.  Another dynamic new area has been in Waste and Recycling, offering solutions that maybe the banks and other financiers may have overlooked. Finlease has also helped some significant Quarrying … [Read more…]

A high tech approach to technology finance.

You may have thought that all finance was created equal, and what worked for one type of equipment will work for another. But when you talk to Bill McMullan, Head of Finlease IT you’ll discover there’s a lot more to technology finance. Bill served his time with Dell, a company many would regard as one of the innovators in getting computers efficiently into the hands of the end user. Now Bill brings his wealth of knowledge under the Finlease roof. While Finlease IT was founded as a partner working closely … [Read more…]

Finlease clients speak their minds.

What do Finlease clients really think of our service? How do we compare to the banks? The Finlease Customer Survey unearthed some startling revelations which were quite an eye opener. We’ve always valued the opinions of our customers and make every effort to listen then respond to make our service better. So Finlease undertook a survey late 2013 to find out how our customers rate us. The findings were quite a revelation. The key task was to establish customer satisfaction levels, identify areas of opportunity and understand where we stand … [Read more…]

A quick fix for interest rate savings.

Lock in now and reap the benefit. With RBA rates at a historic low and the recent change of Government, anyone who is looking to fix interest rates at these all-time lows could be well advised to start the process now. Economists are of the view that the fixed interest market is about to trend upwards, as reflected in the historic graph below provided by the National Australia Bank. Notice in late 2008 as the RBA rate reached the lower point of rate cuts, the 3 & 5 year swap … [Read more…]

Looking back – where did 2013 take us?

Looking back, 2013 was a period of change and depending on whose side you were on, it looks to have been a change for the better. Australia voted in a change of government which saw the end to a hung parliament. As a result, business confidence has rebounded, with the NAB Monthly Business Survey to Sept 2013 recording a lift in business confidence, rising 17 points above what it was in July, bringing it to the highest level in 3 ½ years. Business conditions are also moderately up, as finance/business/property … [Read more…]