Funding A New Asset Purchase


A combination of the following factors contributed towards the success of the deal.

  • The client’s on time repayment history with current lender for an existing loan facility despite the impact of COVID lockdown restrictions
  • A 20% deposit was available
  • The asset to be purchased was a new technology in the body sculpting market, and would generate a profitable income from a modest number of treatments
  • Being an established business (i.e. time in business) and its location in an affluent postcode were also helpful in getting the deal over the line.


Our client, who owns and runs an established skin and beauty clinic, wanted to purchase a brand new non invasive body sculpting machine. The purchase was to be made via the manufacturer dealer; and the machine was already in Australia. 

The client is a non-property owner but had a 20% deposit available towards the purchase. On current income, the client was not able to service the new loan. Projected income from having the machine was required to establish serviceability.

As it was quite an expensive machine a longer loan term was preferred to reduce the repayment in order to maximise cash flow.


We encountered a few hurdles in the deal. 

  • This new technology body sculpting machine was classified as a tertiary asset. The beauty industry is also viewed as saturated so lenders would not consider loan terms of greater than 3 or 4 years. However, shorter loan terms mean that repayments would be up to 150% higher than a 5 year loan term
  • The loan amount ($100K) exceeded the general threshold for lenders to approve the loan under no doc or lo doc i.e. with little or no income documentation
  • Lenders that can consider projected income had a three week turnaround time. However, settlement had to be completed within one week for the client to get the introductory price for the machine. The introductory discount of 10% represented a considerable amount given the price tag of this asset.


After workshopping the scenario with multiple lenders we found one that could meet the client’s requirements and objectives.

Given the client had an active facility for a different machine, we presented the client’s on time repayment history of the current facility despite COVID lockdowns. 

We also provided a detailed summary of key differences that this new machine had with other non invasive body sculpting machines. This makes a very profitable asset purchase that could potentially pay itself off in a short amount of time with a modest number of appointments.

The lender had one condition of approval i.e. being able to provide evidence the remaining term of the business lease exceeded the term of the loan.

Further to this, we explained the marketing support package that was included with the asset purchase. This was to give the lender more comfort the client would be able to execute a highly profitable launch strategy.

The lender was able to finance 80% of the purchase price without any income documentation. The facility secured was $100K+ over a 5-year term. Comparing a loan term of 3 years, repayments are 25% (or $680 p/mth) less given a much lower interest rate.