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Fast Doc Equity Funding with Selfco

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Do your clients have equity tied up in assets that they would like to access? 

Many businesses have funded capital purchases via cash or have significant equity tied up in business-critical assets. Selfco has a solution that allows clients to access this equity on a FAST DOC basis, even if the asset was purchased outside of the typical sale and buyback window of 3 – 6 months.

If the asset was purchased from a recognised dealer within the past 6 months Selfco can fund up to 100% of the original purchase price under a sale and buyback. This essentially allows the business owner to ‘roll back’ their decision to fund a capital item with cash- certainly handy when the client’s accountant advises that there was a better use for the cash than tying it up in an asset.

But what happens if it is a piece of gear that was purchased many years ago, remains business-critical, and can’t be sold to access the equity?  

Selfco allows the client to access the equity in these illiquid assets via our Equity Funding program. Whilst not a typical ‘cash flow’ product, as it is not available to pay off tax debts, purchase inventory, or be used for short-term funding needs, it does allow clients to access a valuable store of equity in their existing fleet of vehicles or equipment. 

Some useful examples of Equity Funding are to: 

  • Replace a motor in a truck 
  • Refit a commercial fishing vessel 
  • Fund the purchase of assets that are not readily acceptable to lenders
  • Fund the purchase of an asset from overseas 

So what is the process? 

Access equity in existing assets under Fast Doc for a defined non-working capital purpose. 

Funds are to be used for a specific business purpose that can be demonstrated via the provision of an invoice.  

The security asset is to be valued by one of Selfco’s panel valuers with funds advanced against the asset’s Auction Value. The advance rate is determined by the credit profile of the client and ranges between 100% 70% of Auction Value.

The client will need to demonstrate ownership of the asset via registration papers or similar.

Selfco advances funds under a Chattel Mortgage and takes security over the valued asset recording our interest via the PPSR. 

Selfco will settle the vendor directly under the invoice. In some instances, such as an overseas supplier, this may not be possible and alternative arrangements will be considered at Selfco’s discretion. 

Valuation is to be arranged by the Broker and addressed to Selfco. The valuation fee is to be paid by the customer, however, may be funded via the loan advance and remitted to the client at settlement. 

A secured guarantee is required from property owners. 

Equity Funding advance rates are as follows: 

Property Owner     Non-Property Owner 
Credit Profile  A  B  C  A  B 
ABN & GST (Yrs)  3  2  1  3  1 
Advance Rate (% of AV)  100%  90%  90%  80%  70% 
Max Loan Amt  $100,000  $75,000  $40,000  $75,000  $40,000 
Base Rate  9.95%  10.95%  13.95%  11.95%  15.95%