express freight transport & logistics

requirement

$5,500,000

facility

Disclosed Debtor Finance Facility & Term Loan Facility

client background

A family owned business that has been operating since the 1980s and focuses on servicing regional NSW.

client challenge

The client was looking for a financier that had a broad set of capabilities and could provide a holistic financing arrangement that addressed all of their needs. Due to the relatively constrictive nature of their existing debtor finance arrangement, the client had needed to take out other short term financing arrangements to handle their lengthy working capital cycle. The cliental had an opportunity to invest in new equipment which would save the business thousands in reduced equipment hire fees each month.

moneytech's solution

Moneytech provided a $4m Debtor Finance Facility with advance rates of 95% to replace the existing facility with advance rates of 75%, thus generating a substantial amount of additional working capital for the business. Moneytech also provided a $1.5m Term Loan Facility which was used to consolidate other short term financing arrangements into one facility with a longer term and smaller repayments. This Term Loan also provided the client with an additional $600k to invest in new equipment. These combined facilities provide the client with cost savings despite the increase in availability of working capital financing, spread out the businesses commitments over a longer period thus further improving their monthly cash flow and finally allowed the client to arrange equipment investments that generate thousands in savings every week.

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