Does your business have a fleet of 5 or more vehicles/assets that are regularly turned over? Then the following is relevant to you:
A Master Asset Finance Agreement (also known as Master Lease Agreement, or leasing line) is a solution we put in place for companies that have semi regular asset purchases in their business.
A MAFA allows us to structure a lease facility with a pre-approved credit limit. This gives businesses the comfort to transact quickly and easily, while also providing beneficial rates vs individually funding each asset.
The benefits of a MAFA include:
o Pre-approved asset finance limit to utilise by the business to fund their asset requirements
o Quick transactions due to pre-approved credit – very little paperwork per lease that can often be turned around in 24 hours
o Lower interest rates than purchasing assets individually (often a material difference). The bank can build a profile on you and your business and assess you as lower risk
o Ability for businesses to purchase the asset in cash, and then “lease back” into the facility after purchase, meaning businesses can make quick decisions without having to worry about finance approval, and deal with the financing post purchase.
o MAFA limits can be easily extended/amended to suit business requirements.
Assets that could fall into the MAFA include (But not limited to):
o Motor vehicles for employees (utes, vans, sales rep vehicles)
o Trucks, trailers, and other earth moving equipment
o Specific business equipment (eg printing press, IT equipment, dental equipment etc)
o Company director vehicles
If you would like to discuss whether a MAFA facility would be of benefit to your business, please reach out to our Asset Finance Specialist, Harry Ioannou to discuss or speak with your Accountant.
Ph: 0423 087 077
Email: harryi@hmadvisors.com.au