Financial venture to fast track restructuring

TCF Services has linked up with financial solutions company WEALTHcheck Finance to provide enhanced assistance to companies restructuring for a freer global trade environment.
TCF Services managing director Gerry Frittmann confirmed the consultancy - which administers and advises on the Government's Strategic Investment Program (SIP) nationally - has partnered with WEALTHcheck to increase the base of funds upon which each SIP participant could draw, with the aim of accelerating investments.
"By accessing a bigger pool of available funds, each enterprise CEO can create opportunities to achieve a greater return for their business," Frittmann said.
The partnership would mean TCF companies could make their restructuring investments "sooner rather than later" as SIP funding was susceptible to erosion, said TCF Services strategic programs director Trevor Thomas.
The $747 million post-2005 SIP runs until 2010 for the entire TCF industry but full grant funding in the last year of the scheme could be eroded due to "creeping modulation" of grant payments, he said.
"The government has capped funding to $97.5 million a year, so if more than that is spent in one year it is deducted from the following year's budget, meaning that there could well be a shortfall in the scheme for the final year."
In addition, while the SIP would run until 2015 for the clothing sector, funding would fall to $20 million a year after 2010, meaning that both textile and apparel companies should step up their restructuring activities over the next two or three years to avoid missing out.
"Building an equipment finance solution into the total pool of funds to support new investments has many advantages for clients, particularly those looking to maximise SIP grants on a year-by-year basis," said managing director Frittmann.
The post-2005 SIP would provide grants of 40 per cent for new and capitalised investments in TCF plant and equipment, buildings or structures, computer hardware or software and upgrades to plant and equipment required by environmental regulations, he said.