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