Business of the Month - $160k equipment finance

8 March 2021

We recently spoke to Sam Tran, GetCapital Credit Analyst, to find out more about a recent $160,000 facility to a fitness franchise who were looking to purchase a range of tertiary assets and equipment. 

Q. Sam, can you tell us a bit more about the business?

A. The business consists of seven fitness clubs located within New South Wales, each trading under a unique company name. 

Q. What do you look for when assessing a request?

A. There are a few factors we look for, including how long the business has been trading, the quality of the credit file(s) and the overall cash flow position of the business based on a review of their average sales and running balance.

We also look at the director profiles to determine if they are also property owners. Ultimately, these factors enable the GetCapital Credit Team to determine whether the business profile aligns with their request.

In this case, the request was very detailed – the broker provided clear notes regarding business operations, advised precisely what equipment the client was after and understood the pricing/term for the equipment.

Q. You mentioned this was a strong application, can you tell us what stood out for you?

A. This entity has been trading for over eight years with the support of two directors with a clear credit history, has asset backing with a total of three properties between the directors and a strong cash position on their balance across the last six months sitting at $122,000.

Q. How long did it take you to approve the full-requested amount of $160,000?

A. Based on the information we received from the broker; we were able to approve the full-requested amount of $160,000 within 30 minutes – a great outcome for all involved.