I'm after funding for a Car rental business

by a searcher from Victoria University

2 years ago

Hi, I'm after funding for a car rental business.

I'm based in Australia and funds required are around $10mil (large amount of that is held in assets.
We have come to a general consensus on the value, its now the terms. They have agreed to vendor finance but we have not yet given % as need to find out what we can get funded. 

We know we can get $4mil is asset finance but need more to get the deal over the line.

Cheers

Amanda

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3 comments

searcher from Victoria University

Thats great advise, in regards to putting the value on the vehicles my understanding is the finance companies here in Australia have only one or 2 ways of valuing. At this stage we have not determined the value of the fleet and need to decide on what we offer the vendor. So I'm assuming your saying it would be smarter to pay a lower valuation then current market or some how work out an ongoing pay out based on future vales of the vehicles. I would really appreciate any advise here.

2 years ago | like reply | 0 likes

searcher from London Business School

I would be very wary with cars as an asset. Currently due to supply constraints second hand prices are overinflated. The indexes are showing a turning in the price if second hand cars and you don't want to be over exposed with the asset. I would look at more vendor financing and an earnout to protect yourself

2 years ago | like reply | 1 like

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