Optimised & Industry-ready Solutions
A well-established plant hire business acquired a substantial amount of equipment for cash at an auction
Buying the additional equipment depleted the business’ cash-flow to a point where there was insufficient working capital to maintain the running costs of the company
The business principals had considered factoring as a solution, but were sensitive to customer’s knowing about their funding arrangements.
The business needed a quick outcome. The establishment of a confidential invoice discounting facility was set up, enabling the business to receive up to 80% of its existing debtor’s ledger in cash in the week invoices were raised. The business cash-flow was replenished and the business had a sound funding platform. The directors were able to raise funds to meet the wages and running costs.
Civil engineering equipment loan
The acquisition of a complementary business and property had positioned this Civil engineering company for significant growth. The overdraft facilities in place with the bank proved to be inflexible, stretching the company’s cashflow and increasing the risk of obligations to the ATO and key creditors falling behind.
A business loan and a debtor finance facility were attractive because the funding available increased in line with the growth in the business rather than being linked to the value of unrelated real estate. There was also the added advantage that real estate security was not required to support the debtor finance facility.
The most attractive feature of the offering was that multiple facilities could be established to accommodate the acquired businesses. Furthermore, the respective properties were not required as security to support the facilities.