Cashflow solution for a road construction company

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Read how we helped a road construction company in QLD consolidate their existing debt to improve their cashflow.

Equipment Finance - Sale and Lease back

 

A significant increase in sales for a Qld based road construction company created some substantial cash flow problems for the directors. As a result, the business incurred a considerable tax debt which was under a repayment arrangement at $10,000 per month. They also had a short-term business loan with monthly repayments of $6,600pm.

Upon referral from the broker, we were able to help them unlock the equity held in their unencumbered equipment via a $197,000 chattel mortgage with repayments of $5,157 pm over 60 months.

 The consolidation of the Tax arrears and business loan had 2 benefits:

a)    A reduction in monthly commitments of $$11,400 - significantly improving cash flow &

b)    The removal of the tax debt enhancing access to main stream credit for new plant & equipment.

 Some of the security provided included some aged assets including:

  • 1982 Steel Drum Roller
  • 2014 Caterpillar 246D Skid Steer
  • 2017 Caterpillar CB22B Compactor
  • 2013 Leeboy Paver PF150B
  • 2013 Sakai TS 160-2 Pneumatic Roller

 

If this sounds like a solution for you or one of your clients, get in touch with us to see how we can help.

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