Subscribe
Share
Share
Embed
Welcome to Finance Fundamentals: Property, Business, and Beyond – your ultimate guide to mastering the essentials of finance. Hosted by Todd Franzway, this podcast dives deep into key topics like mortgages, investment basics, cash flow management, asset finance, and business lending. Whether you're a seasoned investor or just embarking on your financial journey, join us to explore the fundamentals that drive success in property, business, and beyond. Let's unlock the secrets to financial empowerment together!
Welcome to Finance Fundamentals, Property, Business, and Beyond, your go to podcast for mastering the essentials of finance. I'm Todd Fransway, and throughout this series, we'll explore crucial topics such as mortgages, investment basics, cash flow, asset finance, and business lending. Whether you're a seasoned investor or just starting your financial journey, join us as we explore the fundamentals that drive success in property, business, and beyond.
Let's unlock the secrets to financial empowerment together.
Hello and welcome to another episode of Finance Fundamentals. I'm your host, Adam Bell, and today we're diving into how asset and equipment finance can help accelerate your business growth. We'll explore practical insights and real life success stories on making strategic investments without the heavy upfront costs.
Now, of course, joining me again today is Todd Franzway. Welcome to the studio. G'day Adam. Thank you. Thank you very much. All right. So let's start. Can you explain what Asset and Equipment Finance is and how it typically works for businesses?
Yeah. So, it basically enables businesses to purchase, all sorts of assets and equipment goods, equipment, even cash flow funding, to help grow their business in terms of they don't need to have large upfront costs.
Some of these items are quite expensive, and yeah, they can finance them over a period of time, which then, Yeah, preserves their cash, , or their capital so they can use that to grow the business as opposed to buying
equipment. Sure, sure. So that's the major benefit of financing rather than purchasing outright.
I suppose you've got to have the capital first to be able to. to buy in the first place?
Well, you know, sometimes, yes, sometimes no. They don't necessarily need to have capital to finance, but they will need to have pretty good cash flow. Sure. But yeah, it's an alternative to using, the capital, and then they can use that to, like I say, expand their business, as opposed to Just buying equipment.
So what typically are the most common?
Assets or pieces of equipment that, um, businesses are, are financing?
Well, if you say the most common, most people buy a vehicle. Like, most businesses have, vehicle or multiple vehicles to run around in. But, yeah, there's, is all sorts depending on the nature of the business. Do you know, you could do, dental.
Fit outs where you finance the chairs and all the equipment that dentists use or it it can be all matter of things ovens for bakers right Specialist stuff for tradees likes a whole heap trucks Excavators, yeah. Yeah. So like you literally finance most Things for business.
Okay. And, does, you know, you as a finance specialist, does these sort of, I guess this sort of finance, does it differ to other things that you do, like mortgages and things like that?
How does it, how does it differ? Yeah, it's
a really different space to residential mortgages, that's for sure. There's various methods of, obtaining the finance,
You still have a big panel of lenders? Yeah,
absolutely, yeah, they're, but they're, it is, it's a good panel of lenders, but it's lenders that typically, they're not household names, you know, Right.
They're more, they, they tend to specialize, in certain areas. Yeah, so it's, uh, definitely different, different criteria, uh, different assessment methods. Right. Do you find,
uh, you know, your, your clients, cause that was an interesting thing you said that they're not household names and you know, when, if you do go and get a mortgage, you've probably heard of most of the major lenders in one way or another, but do you find your clients feel different?
a little bit more uncomfortable going in with someone they haven't maybe heard of before?
No, no, no, we don't really have that. I mean, we're ultimately, we are providing a solution for them. And so long as the solution works, it's cost effective. Then it, it kind of doesn't really matter where that funding comes from.
So, and most business people are savvy enough to know, you know, as long as it works and they're not paying more than they should. Then that's it. Yeah, you get
what
you need to
grow your business.
Yeah, that's right. And if they're busy, they're just like just sort it Get it. Let me move on. Yeah,
sure. Okay.
Yeah, are there any tax advantages to financing? You know assets and equipment
there can be and the reason I say that is I'm not an accountant Okay, so well,
let's give this let's give the
this
is not financial advice. That's right That's the whole please seek a professional. That's general in nature.
Okay. Yep hundred percent But yeah, generally the interest attached to the financing is tax deductible and often the equipment purchased, they can claim depreciation on as well. But again, that's up to their accountants but yeah, that's how it can help. Okay.
Can you tell us about one of your success stories, someone you've been able to help out by getting some finance for something they really needed and maybe the impact it had on their business?
Yeah, so there's probably, oh, there's numerous, right, but, you know, one of my favourites I suppose is a baker, and he needed some new ovens, which meant that it could, he could bake more in a more, a better time frame, however you say, like, it was more efficient, right, than the current ovens that he had the cash, but what he did is we financed the ovens, and then he used the cash to buy a second bakery, And then repeated the process all over and, you know, is doing really, really well.
So instead of, you know, having used that cash to buy the equipment and have one bakery, he's now got two. Bakeries with solid income streams, we've had tradies buy, specialist equipment in, like a plumber bought leak detection kit, they were having to outsource that, they bought the equipment, we financed that, and then they were able to then, create more revenue for their business by having that, and they had more control over the timing of when that detection work could be done as opposed to with the party, there's even like builders, that, now we're seeing more and more do cost plus and not moving away from fixed price building contracts.
They need cash to buy the equipment upfront, sure, on a cost plus basis. They're doing cashflow funding. Because they can make more profit, because they can buy more materials, take on more jobs. So, yeah, there's a whole range of ways that we can be helping businesses. You can obviously
see the benefits there too.
So, what, a business is considering that maybe they haven't done, you know, this type of finance before. What are the things they should take into account?
Well, I, I think it's probably good to speak to someone that knows what they're doing in the space. Yep. So we, we can ask the right questions to diagnose is it right, is it, or even advise 'em on, well, hey, have you thought of this?
There might be options out there that they don't dunno about. Don't even know about. That's exactly right. So, yeah. Part of it's just that delving in, collecting the information about them, their business understanding. their busines and where they want to take it, and then can we help somehow with that, you know, finance wise.
Sure. You know, more often than not, there's a solution that can definitely help them. Sure. You know,
propel them forward. So, there's people out there listening who's thinking, I've known for a while I need this thing for my business. It will help me grow. Yeah. But maybe you're in the mindset of, well, I just can't afford it.
Come along, have a chat with you and just see what is available.
Yeah, that's, that's right. It certainly doesn't hurt. And it doesn't cost anything to have a chat to us, that's for sure. And then who knows where it could take them, you know.
Absolutely. Like you said, you know. May not even know what's available.
Yeah. Yeah. Yep. Fantastic. All right. So, How does that I guess this type of finance help a business day stay competitive in it and ahead of the game? I guess it's like we've talked about isn't it? It allows you to get something to that can accelerate your growth That's what it's really all about, isn't it?
Well, yeah, it can it can be that it can be I'm just saying ahead of you competitors. You might be able to buy newer Transcript equipment or stuff that makes your business more efficient, by having that newer equipment. So, even like say tracking companies, they're now getting more sophisticated with their GPS tracking and so on.
And so people can log on and see where their load is on the road, you know, whereas, you know, that, that would help a Trucking companies say ahead of their competitor that doesn't offer that so sure, you know, if you've got a moving product You want to know where it is? Yep. Yeah,
so you said this finance could be used for just about anything
Yeah.
Where, where does the line get drawn? What can't you use it for?
Yeah. Well, it It does have to be for business, you know, and there's always the stories of, you know, what about aircraft and what about boats and, you know, you have to, you know, there's gotta be, some collaboration from the accountant, particularly if it's getting a bit imaginative.
Sure. Cause I have heard about the
tradies who get a caravan because they do drive out to their jobs and stay there. Mobile site office. Yeah.
So that's right. As long as it's, it, you know, some people say it passes the pub test. Right. Okay. Good call. Does it make sense? If so, and it fits the business.
Yeah.
Fantastic. Excellent. Thank you. We'll look. Thanks so much for coming in and enlightening us on, uh, on this type of finance. I think it's probably something a lot of people don't think of, don't consider. So as we've said, you know, if you are listening and you do need something for your business, have a chat to Todd.
Cause, uh, look, your insights and your knowledge on this is, is incredible. So come along, have a chat, see what, what is available. But, so thanks so much. Whether you're looking to upgrade, acquire new assets, without straining your finances, this could be a very, good way to go. So talk to a specialist like Todd.
Join us next time on the, Financial Fundamentals for more things when we talk all about finance and every, every benefit that you can offer. Thanks so much for coming in, Todd.
Yeah, thanks Adam. Had a good time as usual. And yeah, happy to chat, happy to explore.
Best place to get in touch with you.
On our website, Franzway. Com. au, got all of our contact details there, it's probably the best. And we will also have
that, link in our, show notes as well. Awesome. So, look forward to chatting to you again. Thanks very
much. Thank you for joining me today for Finance Fundamentals, Property, Business and Beyond.
We hope you've gained valuable insights into the complex world of finance and discovered some valuable nuggets to take with you. Remember the information provided in this podcast is general in nature and may not be suitable for everyone's financial needs, goals, objectives, or even situation. It's crucial to assess whether information aligns with your individual circumstances before taking any action.
If you found the podcast helpful, we'd greatly appreciate a 5 star review on your favourite podcast platform, and even better, sharing it with others who might benefit. Also, don't hesitate to send any questions you have via the link provided. for listening. Stay informed, stay empowered, and until next time, make wise financial decisions for a brighter future.