Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Provide 3 commercila loan arrangements for this scenario To accommodate new contracts and planned future expansion, the applicants require establishment of an Equipment Finance Limit

Provide 3 commercila loan arrangements for this scenario
To accommodate new contracts and planned future expansion, the applicants
require establishment of an Equipment Finance Limit of $470k to purchase Trucks
and Dog Trailers in the next 12 months. On the advice of their accountant, a new
entity, Hamdeep Holdings Pty Ltd ATF The Hamdeep Discretionary Trust, has been
established to purchase the new equipment which will be internally hired to
Hamdeep Transport Pty Ltd (the trading entity). Hire charges will equate to finance
payments. Ron and Sean are directors of both companies. The longer-term
intention is for the Trust to acquire premises to be occupied by Hamdeep Transport
Pty Ltd.
As part of this expansion the company has leased a second depot at a cost of
$6,000pm and will also retain the existing depot.
They currently have 5 employees and where needed are using sub-contract
operators to fill shortfall in their delivery capacity. Purchase of new additional trucks
and trailers will provide additional capacity and flexibility and reduce reliance on
sub-contractors who can be unreliable.name 3 commercial loan providers for

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808