Ask the Experts – Andrew Clark, Equipment Financier (Earthmoving & Transport)

"most SMEs are keeping equipment finance separate from their banker"

“most SMEs are keeping equipment finance separate from their banker”

Welcome to the first installment of Ask the Experts. Each month we’ll be talking with finance professionals about what’s going on in their specific industry niche.

This month we catch up with Andrew Clark – Equipment Financier (Earthmoving & Transport) at Moody Kiddell & Partners (

James/ What’s the main challenge you’re facing at the moment?

Andrew/ I would have to say since the GFC, the main challenge has been getting banks to actually lend our clients some money!

James/ What’s changed?

Andrew/ Well, gone are the days when you’d submit last year’s financials, a copy of one of the director’s tax returns and wait for the approval. Now we have to pull apart the balance sheet, the P &L statement and relate these to the proposed asset and how that is going to assist the business get where it needs to be.

James/So the banks have tightened things up?

Andrew/ Absolutely. They’re more careful about who’ll they’ll lend to what type of assets they want on their books. They want clients who know where they’re going and how they’re going to get there, and assets with a good resale value.

James/ What are some of the major changes that clients need to understand?

Andrew/ The main ones are records of recent financials…these are now mandatory, as well as a clamp-down on assets  that they (the banks) will actually fund.

James/ Clamp-down?

Andrew/ Whilst the banks will still fund what we call “tertiary” equipment, which is basically anything other than your mainstream business assets, in that case they will look to tie-in as many additional assets into the transaction as possible…the house and whatever else they can use.

James/ How has this impacted your segment of the business?

Andrew/ Currently, most SMEs are keeping equipment finance separate from their banker. They don’t want assets tied-up, so brokers and factoring companies like AR (AR Cash Flow) are playing a more prominent role.

James/ What about the rest of the year?

Andrew/ I am anticipating that the market will remain a little slow. The spike in activity due to the federal government’s investment allowance has finished, plus election years always tend to make the market wary.

James/ So how’s business for Moody’s other divisions?

Andrew/Our property finance area has been strong, but we expect to see it ease over the next few months. Insurance remains steady, they tend to be a bit protected from market trends, because no matter what is happening people still need to have their assets insured.

James/ Does this effect your area?

Andrew/ Not in a negative sense. Moody’s divisions tend to work off each other. Our property area can help clients with restructuring their overall position whilst the insurance division can usually lower their premiums. This helps the client’s cash flow and means they can purchase an asset through me that’s going to help them grow.

mkp logo june 2010 (1)


Expert Profile:

Name: Andrew Clark

Title: Equipment Finance Broker

Years at Moody’s: 5

Years in finance broking: 5


Mobile: 0410 531 913


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