LeaseWise Australia Pty Ltd

Case Studies

Case Study Number 4

The director of a Sydney-based company operating in the building and construction industry had, on his accountant’s advice, appointed an administrator/liquidator following the failure of three of the company’s major debtors.

Despite the company having had an excellent repayment history with one of the major banks over a three year period, the bank insisted the action taken by the director was an event of default and insisted on the loan being paid out. Furthermore, the bank refused to refinance the loan in a new company the accountant had set up for his client.

Leasewise Australia assessed the application for finance applying its standard “four C’s” credit assessment tests and declared credit, capacity and character were good but the truck to be financed failed the collateral test as the bank’s payout exceeded the value of the truck.

After discussion with the customer a two-pronged approach was agreed that would enable Leasewise Australia to assist. The customer paid a deposit to reduce the amount financed and a caveat was registered over the owner’s private residence as collateral security.

The business remained in operation and Leasewise Australia gained a good customer with established credit for a large amount.

With excellent cooperation from the owner of the business Leasewise Australia produced a very good outcome for both parties.

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