A curious case of cart before horse, or should we say cart before coffee?
We all love to pick up a coffee on the go. Here's a great example of helping a local business, through their local broker, to get their mobile coffee cart project off the ground.
The customer is a successful restaurateur in Victoria looking to purchase a Coffee Van. They approached their broker, Doug McClelland, with the need for finance to fit-out a new van as a mobile coffee cart.
Fit-outs are difficult to finance so we needed to come up with some “creative” options that worked for the customer and Cashflow Equipment Finance.
We had a good idea of what the Van would be worth post fit-out but the challenge we faced was the fit-out was going to take 8 weeks.
In order to gain comfort, Cashflow Finance took a charge over another van as additional collateral and with the customers agreement we were also able to list a Caveat over their property.
With the time needed for the fit-out the Coffee Van could not earn income to start the repayments so we had to structure lean payments in the first two months of the loan (that way the customer doesn’t experience any cash flow issues)
At the end of the 8 weeks we’ll then refinance the loan, pay for the remainder of the fit-out and remove the Caveat from the customers property.
A great win-win for all involved. Flat white anyone?