COMMERCIAL LENDING
Six months of trading. $850K in bank facilities.
An Adelaide equipment hire operator needed $500,000 to import his own gear and lift his margins. Six months of trading, in a sector most credit desks call high-risk. It settled with a major bank at $850,000.
The challenge.
The client had been running his equipment hire business in Adelaide for about six months when he came to us. The work was there. The margin wasn't — it sat in owning the gear rather than hiring it, and importing his own fleet meant finding $500,000. Equipment hire is on the high-risk list at most credit desks. Add a six-month-old ABN with no full-year financials and there is nothing for a lending scorecard to grab. Read cold, the file was a decline. The numbers didn't tell the story. The operator did.
How we structured it.
We sat down with the client and his accountant and built the file properly. Interim financials showed what the ABN age couldn't: an experienced operator running a strong business. Then, instead of asking a scorecard to swallow one big loan, we took the deal to a major bank in three parts. A $500,000 revolving asset line to import the gear. A $250,000 trade facility to carry the import cycle. A $100,000 overdraft for the day-to-day. Each facility does one job, and each stood up to credit on its own terms.
The outcome.
It settled at $850,000 with a major bank. That's $350,000 more than the client set out to raise, for a business six months old in a sector most lenders won't touch at that age. He imports his own gear now. And because the trade facility and overdraft are already in place, the next stage of growth doesn't start with another application.
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