asset finance supports newer businesses
Thornmoney’s clients are able to expand their business, even if they have only been in operation for a short period of time. Find out more below.
Based in NSW, our client is an alloy fabrication company operated by a husband and wife team. The pair started the business so the husband could apply his skills and branch out as an independent operator.
While the first round of equipment was paid for upfront, growing demand from new customers triggered the need for a $23,000 piece of machinery called a press brake, and an asset finance loan was required to cover the cost.
This business is young and only acquired its ABN in 2022. While it was performing exceptionally well, its relatively short period of operation limited its choice of lenders — many banks and financial institutions won’t consider businesses that have not been operating for more than two years for a loan.
To add to the complexity of the finance arrangement, while it was in excellent condition and coming from a specialist dealer, the press brake the business owners had their eye on was not brand new.
After being contacted by the client’s broker, thornmoney BDM Jerome Boadu was able to help facilitate funding for this secondary asset, at a competitive rate and without the need for a secured loan. This was despite the business’s relatively new status and the used nature of the machinery.
New business? No problem…
As this example demonstrates, thornmoney is always excited to support new businesses, especially when they are in a growth phase after their early success.
We can often turn around finance applications in as little as three days. As part of this process, we review the type of equipment being purchased. In this case, the brake was seen as industry-standard equipment, which meant we felt confident funding the purchase.
This small business now has the equipment it needs to expand, serve a larger client base and grow its profits.
Want to know more about secondary asset finance for a new business? Speak to thornmoney today.
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