How the sub-prime crisis can affect your business directly It’s a phenomenon that some experts are calling the “perfect storm” – the convergence of events emanating from...

Plain sailing into 2008
Interlease-sponsored dinghy sailor Sarah Blanck is in full preparation for the Beijing Olympics, taking out 4th place in the Sail Auckland Regatta...

ECONOMIC UPDATE
After the release of a bout of strong data earlier this year, recent indicators of the domestic economy have come in fairly mixed.

Taking a safe approach to equipment financing
Upgrading or replacing plant and equipment, and ensuring that it adheres to the required safety standards...

Finance helps drive manufacturing expansion

The critical success point for many businesses is being able to readily expand their core operations as opportunities arise.

Tailor-made finance helped leading Australian specialist tapware manufacturer, Enware Australia Pty Limited, to do just that.

The manufacturing landscape has changed over the 70 years that Enware has been in business; more recent developments have seen many of the local manufacturers move offshore.

“We have seen our competitors change philosophy and become importers rather than manufacturers,” says Enware Commercial Manager Ron Milne. “Our strategy has been to ramp up local manufacture and provide a quality product at a reasonable price, backed by superior service and after sales support.”

This is because Enware’s large range of customers in both Australia and overseas —including hospitals, laboratories, schools, universities, food service, mining, industry and government authorities — need products that meet the highest standards and that perform precisely in specialist applications.

The drive to continue Australian manufacture meant that Enware needed finance for expansion and its choice of equipment finance specialist, Interlease, came through a customer recommendation.

“Interlease director Ken Richards was able to help find a way to fund the purchase under the supplier’s terms, including a transferrable letter of credit, and then package it all together and finance it under terms that were acceptable to Enware,” says Ron. “When a company is expanding at the rate Enware has been, it is always a question of funding when making decisions to purchase large items of capital equipment.”

“The finance was largely for capital equipment for developing Enware’s manufacturing and chroming plant in Sydney, where it makes its large range of products including customised water and gas fittings, and hands-free tapware with elbow, knee, foot and electronic sensor operated systems.”

Ron says that Interlease’s ability to manage the sometimes complicated transactions meant that Enware could concentrate of getting the new equipment operational. “We didn't need to go through a mass of paperwork that our bankers often require on transactions of this nature. Interlease was able to put the deal together for us, which meant we didn’t invest a lot of time worrying about the funding.”

Ron says that Enware will continue to expand, and will be “strongly positioned in the Asia-Pacific region and the Middle East” (the company already has offices in Australia, Singapore and Dubai) — something a long-term partnership with Interlease will help it achieve.

“Interlease has a seemingly simple way of doing business,” he says. “It takes all the extra work out of the process. If we need to arrange a lease or a hire purchase contract, we just put Interlease in touch with the supplier and it does the rest.”

Ken Richards – Director, Interlease