2 really easy steps to get the best out of your bank and home loan lender

Mark O’Donoghue the CEO of Finlease talks about getting the best out of your bank and home loan lender. I would like to start this article by providing a basic concept that money is a raw material no different to fuel, tyres or groceries. It is a commodity offered by many who are prepared to compete against each other to secure you as a client who uses their product. In the process of seeking your patronage they will need to do (within reason) what it takes to secure that patronage whilst … [Read more…]

The Jewel in the Crown

The Jewel in the Crown Would it surprise you if I said that the REAL ASSET, the REAL FINANCIAL LEGACY of a 30 year old business was the factory that they bought 25 years ago? Here is a tale of 2 companies who were IDENTICAL in every way except one bought their factory and the other rented. This simple story should be heeded by many companies, TODAY, whose decisions NOW can make a MAJOR difference in the future.   COMPANY: XYZ Civil Est 1985, Owned by Mr John Smith, profitable, … [Read more…]

Directors’ guarantees, exploding the myth

Having seen a recent spate of requests to provide finance to private companies without the owners of those businesses providing personal guarantees, as they don’t need to with their bank, I thought it was time to put pen to paper and provide some real clarity around this situation. The vast majority of debt structures with a client’s bank not only include master personal guarantees (signed once and relevant for all future transactions) they also include far more draconian security conditions which take the following forms:- Mortgages over real estate Fixed … [Read more…]

Taking the stress out of finance

All too often we see companies scrambling at the last minute to put finance facilities in place to pay for machines needed for urgent delivery. This simply does not need to be the case if companies set up a number of pre-approved Lines of Credit for equipment finance. These lines of credit are essentially pre-approvals to fund future equipment purchases. They cost nothing to put in place, can be arranged across a number of lenders (who then can compete for each individual transaction when the time arises). These pre-approved lines … [Read more…]

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…]