In recent times we have noticed an increasing trend by some banks to demand the payout of asset purchase (HP) and leasing contracts if a client decides to move to another bank. The recipients usually comply with these demands without questioning their legality. Such demands usually come as a surprise and often cause unexpected cash flow problems.
The simple way to prevent this situation is to avoid using one's principal bank as a source of funding for asset finance (i.e. plant, equipment, fitouts and motor vehicles). The policy of Enterprise Finance when arranging funding for asset finance is not to use a client's principal bank for this purpose. Problem solved! Another benefit of not using the client's principal bank to fund asset finance is that it prevents the erosion of actual or potential lines of credit which might otherwise be required for other purposes such as additional working capital.
With our extensive expertise and experience in the field of asset finance, Enterprise Finance has access to many alternative funding sources and can assist with structuring your finance needs to best suit your individual circumstances.