Club Equipment Loans

Application & Approval Process

as at January 2021

Rowing is a very capital intensive sport. Rowing WA has a fund to assist clubs finance equipment purchases.  The funds are only available to clubs and not individuals (it is illegal to lend to individuals without appropriate finance licences).

There is a set formula in place around payment terms. Generally it is expected that the club finance somewhere between 15% and 25% of the purchase (but if part of a larger purchase of boats where only part is being financed there is discretion). Rowing WA is generally supportive of most applications.  However, the provision of loan funds is not automatic.  Loans are approved by the Board in advance of funding.

A number of factors are taken into account including firstly the availability of funds in the equipment fund, whether the club has existing loans (the aim is to provide support broadly over the clubs rather than concentrate on 1 or 2), repayment history  of previous loans, discussion about a club’s financial position and the nature of the equipment being financed (boats have highest ranking).

The general process is that a club should contact Rowing WA, through the CEO, who performs preliminary work on the loan approval by obtaining information on:

• The club and whether it is up to date with payments on existing loans (if applicable);
   
• The loan amount sought;
   
• What is being purchased;
   
• The amount being financed by the club;
   
• Proposed timing of the loan draw down;
   
• Term and repayment frequency, which is most commonly quarterly, with a preference for a 3 year term, but can extend to 4 years or longer for infrastructure – interest is set at 8% unless otherwise approved by the Board; and
   
• Preliminary calculation of the repayment terms 

The club is then advised of the repayment amount and schedule and if accepted, the CEO will advance the loan  to the Rowing WA Board for approval.

Following Board approval the loan agreement is drawn up and funds dispersed.