the client

This client is a funeral home; a family-owned business that has been in operation in Melbourne for ten years. 

The business was in need of equipment to lift and move people’s remains with care and without its staff putting their physical well-being at risk. It was introduced to thornmoney by its broker because of the specialist nature of the machinery required.

the challenge: accessing a cost-effective specialist equipment loan

The modular electric lifter required by this funeral home client to create a safer and more efficient workplace is a very specialised piece of equipment. The business was finding it difficult to access a loan at an interest rate that made good sense. This was because many lenders viewed the lifter as a ‘tertiary’ asset. 

To explain this term: Something like a car or an ordinary forklift would be classed as primary assets because they could be bought by many other businesses. 

Tertiary assets are seen as higher risks for lenders because they can be harder to sell on if the need arises. As a result, the interest rates charged on these asset loans are usually higher.

the solution: a more in-depth understanding

Thornmoney reviewed this client’s application for around $80,000 worth of modular electric lifter equipment. After applying a fair and reasonable risk profile with the help of our credit team, our Business Development Manager Chris McCall was able to classify the equipment as a secondary rather than a tertiary asset. 

Because we regularly deal with specialist equipment finance applications, we were able to do our research and determine that there is sufficient potential for resale for this type of equipment within the funeral industry. 

By taking the time to understand the equipment, its value its purpose, we could approve this client’s loan application at a competitive rate. 

A little more heavy lifting = a more suitable loan

Many lenders don’t have time to research the equipment a client requires to operate their business. Thornmoney is happy to undertake more detailed research, which allows us to offer loans to funeral homes and other specialist businesses at more reasonable rates. 

Thanks to the smooth collaboration between the broker, Chris, the thornmoney team, the funeral home could secure the loan. They finally purchased a new electric lifter and improve health and safety without interrupting cash flow. 

Want to know more about specialist equipment loans? Speak to thornmoney today.