EQUIPMENT FINANCE SOLUTIONSNOVEMBER 2015

SME Cash Flow Challenges

Running a small business or medium sized enterprise (SME) is immensely challenging but incredibly rewarding at the

same time. SME owners are required to constantly win new work, retain existing clients, deliver high quality results as

well as defend against competitors.

When there is cash in the bank, you have many more options. That means that you have the ability to invest in new assets

such as upgrading technology, relocating to a bigger premises, equipment to increase production capacity in line with

increase demand for your services.

More importantly, you also have the means to take advantages of opportunities when they become available, before they

expire or are taken up by someone else.

Having liquidity in your business can be compared to having cash in your wallet when you’re walking through a market. If

you have no cash, there is no way that you can take advantage of the specials on offer.

Cash flow management is one of the great thieves that steals productive time away from owners and managers of SMEs.

Almost every owner can remember a situation of trying to “time” their bills with when invoices are received to ensure that

the accounts were showing a positive number at all times.

About Us

▪ Equipment Finance.Solutions (EFS) helps SMEs facilitate the acquisition of finance to assist in the purchasing of plant and equipment

▪ EFS has two distinct solutions:

1) Direct : Sourcing finance on behalf of SMEs to make purchases from third party suppliers

2) Vendor Sales Solution: Enables Third Party Supplier selling B2B to offer clients a finance option in addition to their ‘normal’ terms of trade

Via EFS online portal, finance applications can be taken at ‘Point of Sale’ by the vendor (sales and admin staff) with the support of EFS or

Vendor has the confidence to offer their clients finance as a payment solution and EFS provides a complete outsourced solution

What Problems does EFS solve?

▪ SMEs who don’t understand how to obtain equipment finance or simply are time poor.

- Banks are generally reluctant to lend for ‘Tertiary equipment’ such as telephones, security systems, technology equipment and furniture and prefer ‘Primary and Secondary’ goods such as Motor Vehicles, Trucks and Yellow goods.

- If the bank does finance ‘Tertiary equipment’ it often requires additional security and/or deposits being paid upfront.

Solution: Direct

EFS assists SMEs and their suppliers in the Finance process from applying for, sourcing suitable finance offers and settlement (purchase day). We take the pressure, hassle and time out of sourcing finance for SME business owners.

Simple Credit Criteria (NO Financials required):

- Clear Credit History

- ABN registered for GST (min 2yrs)*

- Purchase <$75,000 ex. GST*

- Directors Guarantee

- Payments made by Direct Debt

* Directors must own property if not ABN to be registered for GST (min 5yrs), for purchases >$75k financials required

What Problems does EFS solve?

▪ Manufacture and Retail businesses who sell equipment to SMEs often encounter “price” hurdles in their sales conversations.

- Many of these businesses cannot offer other payment options like finance, leading to lost sales if the customer cannot afford the upfront cost or accommodate their terms of trade.

- Managing Cash Flow can be hard for SMEs but for most essential plant and equipment is required to help generate income from sales

Solution: Vendor Sales Solution

EFS Online sales portal which enables Vendors (sales and admin) to offer finance as a payment option at ‘Point of Sale’ and allow them to provide a Quote for finance and to take an application for finance from the client during their sales meeting. Assists in ‘taking the client out of the market’ and away from speaking to your competitors.

EFS Online enables Vendors to quickly and easily provide a quote, submit applications for finance to EFS to be assessed for approval and prepare finance contracts for their clients.

EFS provides full support to their Vendors from Sales Training (how to discuss finance in the sales conversation) through to technical support

Plant and Equipment that can be financed

▪ 100% Software + Commissioning costs

▪ Photocopiers/faxes/scanners

▪ Motor Vehicles

▪ Mining equipment

▪ Printing Equipment

▪ Manufacturing Equipment

▪ Security Equipment

▪ Office Fit Outs

▪ Forklifts

▪ Computers and Telecommunications Equipment

▪ Medical Equipment (including optical)

▪ Refrigeration equipment – Commercial

▪ Embroidery equipment

▪ Aviation

▪ Boom Lifts

▪ Compressors

▪ Demountable Buildings

▪ Earthmoving equipment

▪ Generators

▪ Industrial Plant & Equipment (eg. Lathes; Presses; Woodworking equipment)

▪ Mowers - Commercial

▪ Poker Machines

▪ Pressure Cleaners

▪ Sweepers

▪ Trucks

Strategic Partnership Opportunities

EFS offers to enter into a Strategic Partnerships with SMEs to enable Vendors to manage the challenges faced doing

business with confidence and importantly growing revenue and profitability.

The Partnership offer is for EFS to provide a Vendor Sales Solution which both compliments and supports the SME

business.

EFS Online Sales Portal will be made available to Vendors for sales staff to be able to offer finance as a payment

solution to their clients

EFS will provide Sales, Technical training and support to Vendors and their sales/admin staff specifically relating to

Finance and EFS Online and to demonstrating how additional revenue can be generated to the group from non core

sales

EFS offers remuneration programs for SMEs adopting the Vendor Sales Solution

EFS will look to offer other solutions identified during the course of this partnership with its Vendors where it can add

value

Key Benefits of Strategic Partnership

Operational

▪ Outsourced solution administered and supported by experienced Financial and Sales/Marketing professionals

▪ 100% Sales and Technical Support for Management, administration and front line sales staff

▪ Receive 100% payment upfront rather than having to offer payment terms

▪ EFS is responsible for regulatory licencing and compliance risk

▪ ‘Protect’ Sales from competitors who may already be offering finance as a payment solution

▪ EFS can offer different finance options if your clients don’t want to use an Operating Lease

Financial

▪ No cost impact to current core business structure i.e. no additional internal staffing required

▪ Commission paid on settled finance contracts, straight to profit line

▪ Nil payment risk to you as supplier as you are paid upon finance being settled

▪ Increase additional revenue streams from non -core equipment sales

EFS is excited about the opportunity in adding value to SMEs by assisting maximising the revenue and profit generating opportunities across their

business and creating new revenue opportunities to ensure a successful and sustainable future.

Process overview

Salesperson meets with client to discuss product

and financing options

Quick and easy finance application created

through our online portal

Pre-filled PDF application generated by portal; client

prints and signs with salesperson still present

Salesperson uploads application to portal and receives updates as it is

decisioned

Immediately after approval, documents are generated and emailed to salesperson for forwarding

to customer

Client signs documents and returns to

salesperson. Loans settled on scanned copy of docs with originals returned

after.

The system

Dashboard

▪ Allows salespeople to quickly check the status of current deals

▪ Facilitates easy access to all commonly-used functions

The system

Quote tool

▪ In three simple steps, a salesperson can obtain a finance quote which can be printed, emailed or saved to a customer profile

▪ Quotes automatically expire after 7 days to maintain system integrity

▪ Information is automatically populated into applications

The system

Application tool

▪ Our simple application tool is easy for salespeople without finance experience to use

▪ The application form can be completed and saved online, and is only three pages in length

EFS people

Paul HarbottDirector

Responsible for overall strategic direction

of the EFS business and management of

major client partnerships.

Steve KeefeDirector

Responsible for managing lender

relationships and oversight of EFS

business development activities.

Sonia HedgesGeneral Manager

Responsible for client management and

liaison, developing and maintaining

processes