Advantages of escrow finance

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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.