Home – New Forums Money matters Equipment Finance for new business

  • This topic is empty.
Viewing 13 posts - 1 through 13 (of 13 total)
  • Author
    Posts
  • #977693
    AgentMail
    Member
    • Total posts: 1,741
    Up
    0
    ::

    Hi All,

    I wasn’t really sure where to pose this question, so I thought I’d stick it in the most read section :)

    We are looking to upgrade one of our mailing machines and will need to get finance to purchase the machine I want.

    The machine is $60,000, and we have $15,000 to put towards it. The problem is, our business started in Oct 2010, so we don’t yet have a full years financials, and the first year was a write off due to other equipment purchases. Both myself and my wife work on the business full time, so is our only source of income.

    Has anyone had any success as a new business accessing finance? In my naivety, I thought we would be in a good position only looking to borrow 75% on a piece of equipment that will be easily resold, but it seems that because I don’t have 2 yrs of solid financials, the usual channels will not consider it.

    Any thoughts?

    #1100089
    Anonymous
    Guest
    • Total posts: 11,464
    Up
    0
    ::

    Hi Carl,

    I’ve moved this over here to the Money Matters section of the forum, where I think it’ll be more easily seen by people who may be able to help.

    Good luck!
    Jayne

    #1100182
    Anonymous
    Guest
    • Total posts: 11,464
    Up
    0
    ::

    Hi Carl,

    I’ve moved this over here to the Money Matters section of the forum, where I think it’ll be more easily seen by people who may be able to help.

    Good luck!
    Jayne

    #1100091
    VixenBookkeeping
    Member
    • Total posts: 31
    Up
    0
    ::

    Hi AgentMail,

    Have you considered leasing the equipment? Or a hire purchase?

    #1100183
    VixenBookkeeping
    Member
    • Total posts: 31
    Up
    0
    ::

    Hi AgentMail,

    Have you considered leasing the equipment? Or a hire purchase?

    #1100093
    AgentMail
    Member
    • Total posts: 1,741
    Up
    0
    ::

    Hi Vixen,

    Yes, but to be honest, from a financial perspective, it seems very much the same. Still need the same 2yrs worth of financials (positive ones) before they will consider it.

    I am speaking to the supplier now about an internal vendor finance, which should make more sense. The banks don’t understand the equipment, and whilst they apparently ‘live in our world’ they wont take a chance on something that is outside of the box, even when I am putting 25% upfront!

    Thanks for your input though

    #1100184
    AgentMail
    Member
    • Total posts: 1,741
    Up
    0
    ::

    Hi Vixen,

    Yes, but to be honest, from a financial perspective, it seems very much the same. Still need the same 2yrs worth of financials (positive ones) before they will consider it.

    I am speaking to the supplier now about an internal vendor finance, which should make more sense. The banks don’t understand the equipment, and whilst they apparently ‘live in our world’ they wont take a chance on something that is outside of the box, even when I am putting 25% upfront!

    Thanks for your input though

    #1100095
    Chris’s Signs
    Member
    • Total posts: 124
    Up
    0
    ::

    not sure if i should promote this but…..

    i m in the same boat, no one would help out at all…

    but i kept trying and i got a 20k loan from the NAB.
    its not very well known, even the local branch business manager didnt know it was available… its called the micro enterprise loan..i think the max is 20k but hey you have a deposit so give it a go

    hope it goes well for you

    #1100185
    Chris’s Signs
    Member
    • Total posts: 124
    Up
    0
    ::

    not sure if i should promote this but…..

    i m in the same boat, no one would help out at all…

    but i kept trying and i got a 20k loan from the NAB.
    its not very well known, even the local branch business manager didnt know it was available… its called the micro enterprise loan..i think the max is 20k but hey you have a deposit so give it a go

    hope it goes well for you

    #1100097
    James Millar
    Participant
    • Total posts: 1,739
    Up
    0
    ::

    Hi Agentmail. I’m not sure who you bank with but we work pretty closely with NAB now (we are co tenants in their business banking office in Camberwell). I’m actually meeting with one of their senior leasing team on Monday so if you call me before Friday COB there is a good chance we can get something arranged for you (we cut through a lot of the standard response you are hearing from them). My direct line is 03 9005 4901.

    Regards
    James

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1100186
    James Millar
    Participant
    • Total posts: 1,739
    Up
    0
    ::

    Hi Agentmail. I’m not sure who you bank with but we work pretty closely with NAB now (we are co tenants in their business banking office in Camberwell). I’m actually meeting with one of their senior leasing team on Monday so if you call me before Friday COB there is a good chance we can get something arranged for you (we cut through a lot of the standard response you are hearing from them). My direct line is 03 9005 4901.

    Regards
    James

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1100099
    KRW Finance
    Member
    • Total posts: 13
    Up
    0
    ::

    Hi

    There are a couple of ways to get the finance.

    1. Your bank (or a bank) will want security. Ie. property. Without it you are highly unlikely to get what you need.

    2. A Tier 2 finance company. Generally rates are high but they are willing to look at new (or newish) businesses. My recommendation is always take a short term on high rate deals.

    I am happy to discuss in more detail if you are still looking around.

    best regards
    Andrew Reilly
    Tel: 1300 55 77 50

    #1100187
    KRW Finance
    Member
    • Total posts: 13
    Up
    0
    ::

    Hi

    There are a couple of ways to get the finance.

    1. Your bank (or a bank) will want security. Ie. property. Without it you are highly unlikely to get what you need.

    2. A Tier 2 finance company. Generally rates are high but they are willing to look at new (or newish) businesses. My recommendation is always take a short term on high rate deals.

    I am happy to discuss in more detail if you are still looking around.

    best regards
    Andrew Reilly
    Tel: 1300 55 77 50

Viewing 13 posts - 1 through 13 (of 13 total)
  • You must be logged in to reply to this topic.