Many businesses struggle to grow as increasing costs affect profitability.
Horse-training partners Tom and Charlie had a problem: as they grew their business, the more they needed to spend on outsourcing logistics, such as transporting their expanding stable of thoroughbreds to racecourses and spelling paddocks.
How advice from Cerberus helped partners to whip their financing along.
After an accountant alerted Tom and Charlie to the cash bleed, the pair decided to purchase a second customised truck so they could reduce their expenses and increase profitability. They consulted an asset-finance broker, but their pre-dawn starts and long hours left little time to weigh the options themselves. That’s when they asked Paul Zahra for advice.
Paul saw the plan as a big shift for Tom and Charlie. The proposed investment was just $220,000 to buy and fit out the new truck, but for the strategy to work in execution, they’d not only need good borrowing terms but also to hire a driver and carry extra risk. Paul got the pair a super-competitive interest rate of 3.5% – fully 1.5% less than their broker’s quote – and had the deal approved and settled in three business days.
Paul’s customary close study of the clients’ finances turned up another bonus. He found Tom’s and Charlie’s longstanding home loans were way above current market rates. Like most busy people, they hadn’t realised better terms were on offer, and of course, the banks hadn’t called to tell them. Making sure established loans remain competitive and continue to meet clients’ needs is a service Paul considers part of his job.