Powered by MOMENTUM MEDIA
the adviser logo
Lender

SME lender buys Eclipx Commercial

by Hannah Dowling5 minute read
Eclipx Commercial

SME lender Grow Asset Finance has purchased Eclipx Commercial for $14.6 million, as Eclipx divests its assets to reduce debt.

Grow Asset Finance, part of the Grow Business Funding Group, has purchased fleet finance company Eclipx’s non-core Commercial Equipment Finance Australia business for $14.6 million.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

The equipment finance business provides equipment-leasing solutions for SMEs across various sectors, and reportedly received interest from a number of parties in the lead up to the sale.

According to the SME lender, the $14.6-million transaction included refinancing $122 million of loan book debt, which Grow Asset Finance achieved through an institutional structured warehouse facility.

Advertisement
Advertisement

According to Eclipx, all staff of Commercial Equipment Finance Australia will transition with the business with no disruption to employers or clients, and the sale should be finalised within the coming days.

Eclipx CEO Julian Russell said the sale serves as an “important step” of the fleet finance company’s simplification program, which aims to reduce “corporate debt and group complexity”.

The company has sold off a number of other non-core businesses, such as GraysOnline and AreYou Selling, in a divestment scheme emerging from poor financial results recorded in the six months to 31 March 2019.

Grow Asset Finance co-directors David Verschoor and Greg Woszczalski have said that they both see growth potential in the purchase of the commercial business from Eclipx, and reportedly faced fierce competition to secure the deal.

"We’ve been looking for the right opportunity and, while there are many out there, the Eclipx book ticked all the right boxes,” Mr Verschoor said.

“It fits perfectly into our company’s philosophy and growth strategy.” 

Mr Woszczalski added: “This was an opportunity we could not let go.

“Adding an excellent business with high-quality clients partners well with our current Asset Finance and Trade Finance businesses. 

“Plus, the chance to add an institutional structured warehouse facility to our current portfolio of funding arrangements is an important milestone.”

[Related: Purple Circle welcomes 100% LVR lender to its panel]

SME lender buys Eclipx Commercial
eclipx commercial ta
TheAdviser logo
eclipx commercial ta

Hannah Dowling

Hannah Dowling

AUTHOR

Hannah Dowling is a journalist for The Adviser and Mortgage Business.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark lewis fast ta llosc4

In Memoriam: Mark Lewis, 1963–2022

Mark Lewis passed away on Saturday (13 August). Mr Lewis was a well-known identity in the third-party broker...

READ MORE
anthony waldron mortgage choice ta ithtxm

Broker expertise key for securing right loan: Mortgage Choice

The data, which is derived from a June survey of 1,002 broker customers and conducted by Honeycomb Strategy,...

READ MORE
Mark Bouris new ifa

Brokers need to focus on the ‘value-add’: Mark Bouris

With competition among brokers increasing as the number of brokers rises – coupled with the fact that fewer...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more