Advantages of escrow finance

A growing number of businesses are turning to unsecured escrow finance facilities to fund plant and equipment purchases as a means of preserving their working capital.

NAB Short Course - Sponsored Feature

This is an excerpt from Business Spectator’s new short course on Financing Growth. Click here to read the rest of the article, plus the remaining nine articles in the course.

The advantages of escrow finance

Are you looking to purchase new equipment for your business in the near future?

If you are, even if you’re waiting until the new financial year to take advantage of the federal government’s recent budget incentives for asset puchases that come into effect on July 1, it’s worth noting that a growing number of businesses are turning to unsecured escrow finance facilities to fund plant and equipment purchases as a means of preserving their working capital.

What is an escrow finance facility?

In many cases, a critical element of funding new machinery requires a deposit and then subsequent instalments while the equipment is manufactured or imported from overseas.

Escrow finance facilities are very useful in that they allow for progressive draw-downs from a line of funding while machinery is being manufactured, rather than full payment up front.

Click here to read the rest of the article, plus the remaining nine articles in the course.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles