InterPrac Leasing Newsletter-March 2007

Dear Member,

Introducing...
We would like to introduce to you our new team member Mark Maddox. Mark started with us three weeks ago and he comes with plenty of industry experience received from several lenders and is keen to meet you all and assist in any way he can. Mark joins us as we farewell Dean Vo. Dean, recently married, has gone to work with his family on their new ventures. We wish him the best of luck and many successes.

Chattel Mortgages
The popularity of financing an asset such as a Vehicle, Truck or Equipment keeps growing each year due to the eligibility of claiming up to 100% of the GST paid for the asset.  

Often when an individual or a business finances a vehicle for work purpose the aim is to minimise the monthly commitment by taking the maximum term and maximum residual which often results to a five year term and a 30% residual. The statistics are showing that when trading a vehicle customers are finding it more and more difficult to obtain the value of the residual chosen or the payout at the time. In our view this is due to the flood of new brands becoming available each year.   
 
Avoiding such situations commences at the time the finance is organised.

An Example: 
John finances a $40,000 vehicle via a Chattel Mortgage over a term of 60 months and 30% residual or $12,000 with a monthly commitment of $650 a month.

Bob Finances a $40,000 vehicle via a Chattel Mortgage over 60 months and a 20% residual or $8,000 and contributes the full GST ($3,400 approx) he will claim back from the ATO on the 4th instalment.

Bob repays the same amount per month as John of $650 a month.
 
As you realise from the two examples Bob has reduced his residual by $4,000 which will make a great difference when he trades in his vehicle.

Innovative finance
It is a fact that often clients are finding themselves having to pay cash for shortfalls as financiers would not consider taking the shortfall on top of the cost of the new vehicle.
 
Innovative finance with the correct structure can save your clients thousands of dollars and assist their cash flow. The above example is also applicable to all types of Equipment or Truck finance.       
 
Cash Flow Finance
Cash flow is vital for most businesses that invoice their clients but don’t get paid for up to 90 days - or more. Finance for such situations is also available with no real estate taken as a security. This is also an innovative way to free up the overdraft or their personal equity that they have always relied upon to keep the business going.

Insurance Premium Finance
Most businesses incur commercial insurance bills to pay annually such as Workcover, Professional Indemnity, Fleet insurances and all similar bills that often require payment up front. And some of them are huge. We can also finance such bills starting from as low as $5,000 over terms of 6 to 12 months.
 
For all inquiries regarding structured loan facility, cash flow funding or premium insurance finance please call the leasing department on 1800 700 666

Yours sincerely

Djamel Chettibi
National Leasing Manager
InterPrac Finance Services Pty Ltd
Ph: 1800 700 666
Fax: 1300 361 587
www.interprac.com.au