I met with a lender this morning who explained a new policy change on chattel mortgages that will definitely be of interest to small business owners. This lender has no age restrictions on financing second hand assets and an interest in non-primary assets such as catering equipment, food processing, IT and fit outs. They’re committed to beating other lenders in the market on price and we know they financed a 1987 Kenworth truck to show they’re ok with older assets.
If a business owner is looking for cash, this lender will also offer ‘cash out’ against vehicles and equipment that they own outright – eg if someone needs a new engine for a truck, they’ve financed the wholly owned truck to the value of the engine replacement allowing the business owner to payoff the cost of the new engine over time.
I’ve also successfully created a solution with a lender to finance the purchase of equipment from overseas before it arrives in the country (assets normally need to be in Australia so the lender can take security over them and won’t fund overseas purchases in normal circumstances).
This is a real niche finance offering to the small business market that can really benefit those business owners looking for value in second hand assets.