Key Facts
- The new client was an existing customer of a finance broker from Zenith Leasing’s finance broker network.
- The client had a chattel mortgage on his business asset (a truck) with three years remaining of repayments with a bank.
The Client’s Problem
- The business asset had an engine breakdown needing a new engine.
- As the repair to the engine was a working capital requirement, his existing bank was reluctant to increase his existing loan to fix the business asset.
Zenith Leasing’s Solution
- Zenith Leasing proposed a new two year lending facility to refinance the existing loan (payout the existing chattel mortgage to the bank) and pay for the new engine for the truck.
- The new lending facility provided by Zenith Leasing took security over the truck and the new engine and additional security over another truck of the business and a personal asset, a boat.
- The additional security was necessary to mitigate the loan risk to Zenith Leasing as the payout and new engine was valued at less than the new facility loan amount.
