On or Off Balance Sheet Plant & Equipment Finance Lines
We are the leading independent plant and equipment finance packager and advisory business within the Australian domestic market specialising in the establishment of significant “stand-alone” funding facilities outside of a client’s core senior debt facilities and existing equipment finance lines.
Our independence ensures our interests and objectives are completely aligned with those of our clients in securing flexible, highly competitive funding solutions through an extensive network of local and international banks, investment and equity funds and underwriters.
For over 30 years we have structured, underwritten and managed over $5 Billion in general and project specific funding facilities, usually on a “no win-no fee” performance driven basis, reflecting our certainty and consistency in being able to deliver exceptional outcomes for our clients. Our fees are generally capitalised into the competitive funding margins offered and only apply to facilities drawn unless otherwise negotiated.
All existing and prospective clients maintain a “portfolio” of existing banking relationships, however our extensive network of senior funding contacts – built up over three decades across a wide variety of traditional and non-traditional debt and equity participants, is without peer and far exceeds the reach of any single client – no matter how large.
Our entire senior management team is directly engaged in maintaining close long-term client relationships thereby offering a single, experienced point of contact with an intimate understanding of a clients’ specific needs as an alternative to dealing with the distraction of multiple financiers, constantly changing relationship executives; credit policies and credit appetites.
Business Acquisition Funding
Australian Structured Finance provides clear unbiased counsel to CEO’s and Boards of Directors considering growth strategies and business transformation
We structure standalone syndicated loans or “clubbed” facilities combining asset/ equipment finance; property funding and working capital lines to support business expansion and acquisition funding – particularly where the target entity has a significant fixed asset base (plant, equipment, property).
We work closely with our clients from target identification and engagement through asset inspection, valuation, deal structure negotiation, documentation, funding and ongoing management of debt facilities
Facilities are generally syndicated or clubbed using new panel lenders to maximise leverage and flexibility as an alternative to utilising a single secured funding source, drawing upon existing core banking lines or utilising mezzanine debt/ additional equity. Typically, acquisitions are achieved without the imposition of financial covenants or security extending beyond the assets to be acquired, leaving working capital headroom intact with a client’s existing secured lender(s).
Activities encompass PPSR searches; establishing new club or syndicated facilities, attending to all releases/ repayment of the target entity’s existing chattel finance; provision of both long term and short term debt to facilitate surplus asset disposal without penalty; sale and leaseback of existing assets (if required) to support working capital/ goodwill; receivable and property funding. Our target objectives are to maximise leverage against plant and equipment being acquired; provide flexibility and minimise overall cost (both transaction costs and interest rates).
Vendor finance program establishment
Vendor Finance Pty Limited was established by the group in 1989 in response to requests from major equipment manufacturers and distributors to provide competitively outsourced customer finance capabilities where an in-house solution was either cost prohibitive or internal asset finance structuring expertise was limited.
Activities are conducted through special purpose entities; Vendor Finance P/L directly or the ASF Group more broadly depending upon the specific circumstances of the vendor client (equipment manufacturer or distributor) and cover a broad range of highly competitive industries with transactions generally falling between $100,000 for one- off small ticket transactions to facilities exceeding $50.00 million.
Unlike relying upon a single banking partner, a pool of underwriters and residual risk investors is engaged and managed by Australian Structured Finance to ensure a broad range of customer credit profiles, credit appetites and asset classes can be accommodated without necessitating credit or funding recourse to the vendor.
Historically, many of our global manufacturer and distributor clients have operated their own captive finance programs internationally however rely completely upon ASF within the Australian domestic market.
Vendor Finance solutions may also be developed to support special projects and major plant installations.
Debt restructuring (Senior and shareholder)
Australian Structured Finance provides clear unbiased counsel to CEO’s and Boards of Directors considering business transformation and challenging corporate decisions.
Holistic reviews of existing secured debt facilities are undertaken -particularly where the existing bank relationship is strained; unreasonable accelerated debt reduction requirements are in place; financial covenants have been breached or contract/ expansion opportunities are held back due to unsupportive or unresponsive banking relationships arising from past trading difficulties or the Banks overexposure to a client or their industry sector.
Improved borrowing capacity (term debt and working capital) can be achieved by refinancing large single Bank exposures or shareholder loans across multiple underwriters – reducing or eliminating financial covenants; improving cash flow and creating headroom with additional funding sources.