How To Use Finance To Gain A Competitive Advantage For Your Business

Many business owners tell me if they could buy machinery and equipment from overseas they would. 

This isn’t always motivated by price – often there’s a specific asset or product line that just isn’t available here in Australia.

The problem is the upfront cost to buy their desired asset to put it to work here.

The issue is equipment finance only works when the lender can provide funding AFTER they take security over the asset. They can only do that once the asset is here in Australia.

What does this mean?

You can’t use equipment finance to purchase equipment or machinery that isn’t here yet.

A solution to this is a Trade & Import line of credit. 

A Trade & Import line of credit is for the purchase of material supplies – domestic or international supplies

This extends to equipment and machinery.

Here’s how it works:

  • Use the Trade & Import line of credit to purchase the equipment and machinery from the overseas supplier. 
  • When the asset arrives in Australia you use equipment finance to pay out the trade and import finance line of credit. 
  • This way you get your desired asset here and then you’ve got a 3,4 or 5 year term to pay off the asset while it gives you an income and perhaps a capability that’s unique to you in the marketplace.
  • The trick is to know which lenders wholeheartedly support you growing your business in this way.

Final Tips

Used strategically Trade and Import finance stretches your dollar further AND provides the way to acquire assets that give you a competitive advantage.

Give me a call on 0439062771 to put this or another strategy into action for your business.

Have a great week.


P.S. Here’s the lending solutions we put together in just one day last week for our clients (Thursday):

  • $700k second mortgage for a business owner to expand an exciting new opportunity
  • $5M in residential lending for a business owner’s home and investment
  • $100k in car finance to a credit impaired director
  • $4M of funding for a property development
  • $650k refinance for a business owner’s private loan

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