An event hire company wanted to buy a portable event marquee to help run and expand its business. Having sourced and compared estimates domestically and internationally, including from Europe and China, the client decided a Chinese supplier suited both their budget and timeframes.
With the portable marquee ordered and paid for, the client realised they now needed funding to help with cash flow and further investments in the business. Having already financed a commercial vehicle through Macquarie, the client knew Macquarie could help finance other types of plant and equipment.
The Macquarie difference
Extensive experience financing transactions of a similar nature had given Macquarie an insight into the events industry. This market knowledge allowed Macquarie to understand the value the event marquee would add to the business and how it would contribute to their ongoing success.
When the marquee arrived in Australia, Macquarie arranged an on-site inspection of the asset and the client was able to finance the entire purchase amount. This was achieved through a Chattel Mortgage agreement, in which the client took ownership of the asset and Macquarie held a mortgage as security for the loan. This allowed the client to use the marquee while making fixed regular payments.
The choice of a chattel mortgage provided more financial flexibility to the company
The client benefited from this approach through:
- cash raised from unlocking capital tied up in the purchase of the portable marquee
- continued use of the portable event marquee
- fixed regular payments over the 5 year term of the agreement
- capital to invest in other areas of the business.
The choice of a Chattel Mortgage provided more financial flexibility to the company.