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You may not be able to travel, but you can still spend money overseas!

18 Sep 2020 12:02 PM - Overseas Financing

Are your clients buying business equipment from overseas? At NLG Leasing we often assist our valued referral partners and their clients who require finance to purchase business assets and equipment from an overseas based supplier. We have several lender options who can assist with these transactions which are typically conducted via two separate but complementary finance facilities.

Tell me what to do!

Firstly, a client will require funding to purchase the new business asset or equipment directly from the overseas supplier. This is typically arranged via a “Letter of Credit” trade finance facility. Essentially, this is a guarantee by the Australian based lender to pay the overseas supplier or their nominated bank, after certain milestone events have been satisfied.

For example, the Australian lender will promise to pay an initial deposit amount. This will then be followed by several progress payments as the business asset or equipment is manufactured and then shipped to the end client in Australia. Prior to making any payments, the Australian lender will request specific documents from the overseas supplier, or their bank, to verify any progress payment milestones have been achieved. An example of this paperwork could include copies of verified shipping documents.

The second aspect is the financing facility used to “take out” or pay out the Letter of Credit facility once the business asset or equipment has been delivered and installed at the end client’s business premises in Australia. In today’s market this is typically via a Chattel Mortgage loan product for most SME businesses.
Lenders who can assist with the above transactions usually prefer to fund both the Letter of Credit and the Chattel Mortgage in order to control the whole process from payment of a deposit to the overseas supplier right through to establishing a chattel mortgage facility once the goods have been delivered to the client.
Letter of Credit facilities are often arranged in conjunction with foreign exchange cover (insurance) to ensure a price is fixed or locked in for the business asset or equipment at a prevailing currency exchange rate.

To find out more about financing business assets or equipment from overseas suppliers and how NLG Leasing can assist, please contact one of our friendly team members.

Referring Broker Handbook

A reminder that NLG Leasing has released a handy new resource for our valued referral partners. Our “Referring Broker Handbook” will assist you when dealing with NLG Leasing and covers topics including:
  • Our referral model options.
  • Commission arrangements.
  • NLG Connect.
  • Our lender panel and lender product matrix.
  • What we can finance for your clients.
  • Asset finance products and facilities.
  • Broker marketing resources.
  • Application checklists.
To access and download your copy of the Referring Broker Handbook, simply click HERE.

Lender Profile

In addition to offering unsecured personal loans, WISR has just launched a new secured car loan product that we can access for your clients at NLG Leasing. Product features include:
  • Rates from 6.70%.
  • No account keeping fees.
  • No early repayment fees.
  • Loan Amount: $5,000 - $65,000
  • Monthly, fortnightly, and weekly repayment options.
  • Up to 84 Month loan terms.
  • Refinance of existing car loans available.
  • Consumer clients only.
Instant Asset Write Off
A reminder that the federal government’s enhanced Instant Asset Write Off Scheme is still available for eligible business clients until 31 December 2020.
To recap, the scheme enables eligible businesses to “write off” or expense the full GST exclusive cost of a business asset in this financial year rather than having to make periodic depreciation claims, provided the eligible asset or assets have been purchased prior to 31 December 2020.
What are the eligibility rules?
  1. The cost limit is $150,000 (ex GST) per business asset.
  2. Businesses with annual group turnover of up to $500 million are eligible.
  3. There is no limit on the number of individual assets a business can purchase under the scheme provided each asset costs less than $150,000 (ex GST).
  4. Eligible business assets can be new or second hand.
  5. Business assets can be purchased from a licensed dealer, supplier and even via a private vendor.
With just over 3 months remaining, now is the perfect time to assist your clients with any business asset finance to take advantage of this generous government incentive.

Happy to help.

If you are looking for a solution to assist your consumer and commercial clients with all asset, equipment and cash flow finance solutions - but don’t yet have the knowledge and can’t justify the high costs associated with multiple accreditations, specialist systems or a full time specialist on the payroll – then NLG Leasing is the right business partner for you. If you would like more assistance, please contact the NLG Leasing team on 1300 722 011 or email support@nlgleasing.com.au