Asset base lending can fail if ‘unconscionable’

Summary Having a borrower provide standard form certificates of advice from its accountant and lawyer may not be enough to enable an asset-based loan (ABL) to get subsequent legal approval, Australia’s High Court has ruled. The court viewed an ABL as the practice of providing credit based primarily on an assessment of the assets acting… Read More

The Principal & Agent Agreement as a business financing tool

Executive summary The Principal & Agent Agreement (or ‘P&A product’) is a well known credit creation technique which has been used in Australian business finance for many years. It is in essence a ‘flow-through’ lending technique. Utilising the flexible nature of the law of agency, the P&A product enables the rights and obligations of the… Read More

Forum Finance 2021 and National Safety Council 1989: Everything Old is New Again

The recent publicity surrounding allegedly fraudulent equipment leasing transactions substantially funded by one of Australia’s major banks has echoes of a similar scandal thirty years ago involving a leading State government owned bank. In the recent case, many of the same sharp financial practices present in the previous scandal may be observed. Despite the monumental… Read More

Does your business have a Will?

Most people recognise the importance of having a Will to determine how their property is distributed when they pass. If you are self-employed, a partner or co-director, having a ‘Will’ or succession plan for your business is equally important.

When is a Guarantee not a Guarantee?

When it is a Deed of Cross-Guarantee Introduction A Deed of Cross Guarantee is ASIC’s standard form document intended to free a corporate group from the chore of filing separate accounts for each wholly owned subsidiary. Provided relevant group companies have signed the Deed, they are exempt from filing. The Deed can easily be confused… Read More