The flexibility to lend outside the box

Finance broker case study

“Dave Furner called me up on Tuesday the 23rd June at 3.45 pm.

‘Pete I’m going to buy two tanker trailers. One older, one newish. And I want the paperwork done by Friday. So that the purchases go through this financial year. I’ll send through the details.

It’s typical of clients at that time of year. A session with the accountants and they want to go shopping, big. Expecting the money to be easy.

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Dave Furner owns a trucking business outside of St George, south Queensland. He transports flour to the regional depots at Toowoomba, the port at Brisbane, and a bit interstate.

Transport is a lean business: low staff numbers, low margins, and very cost-conscious.  But they use expensive equipment that does need replacing. And there are always opportunities.

Dave was having a good year. After 5 years of drought, the wheatfields were blooming and several competitors had gone bust. Hence the two tanker trailers.

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For clients, it’s all about the rates and length of the loan. For lenders, it’s about whether the loan ticks their boxes. And as a finance broker, I have to wrangle and marry the two together.

The banks and other major lenders have rigid criteria, limited discretion and outside of that, it is a No.

But they have the best rates.

My first approach was rejected. The lending manager at the bank applied company policy and put unworkable restrictions on it. I had to go back to my relationship manager to fight for it.

It took three days of haggling and back & forth. In the end, it was only because of the strong relationship with the BDM that I got an approval that didn’t fit the business model..

Given the type of trailer, it was a waste of time submitting the loan application. The banks and other Tier one lenders will not consider lending against non-standard assets.

Yet all it took was a phone call to the IA Group and it was approved quickly and easily.

IA Group offer service, flexibility and a “rate for risk” attitude to lending. They are asset agnostic and have the latitude and decision making to play outside the box.

They look at the business borrowing the money, the asset to be financed and then decide. The age or asset class is seldom an issue, providing all else makes sense.  

The BDMs at the majors just can’t compete with that.”

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To find out how we can work together, please feel free to call us on 1300 729 995 or visit www.theiagroup.com.au.