Published on 31 October 2024

Posted in Case Studies

Background

For over seven years, we have had the privilege of partnering with Mark and Karl, owners of a successful family-run business. Throughout our collaboration, we have provided tailored financing solutions that have supported their expansion into new markets and enabled investments in equipment to enhance their operations. Recently, they identified an exciting opportunity to diversify further by entering the concrete industry. Given their primarily domestic client base, they concluded that a volumetric concrete mixer would be an ideal investment, allowing them to serve multiple job sites in one day without returning to reload materials.

Challenge

The primary challenge was structuring a finance deal that would facilitate this significant investment without straining their cash flow, especially during seasonal fluctuations. Mark and Karl were looking for a financing plan that would provide flexibility, ensuring monthly payments remained manageable even in quieter months. They needed a solution that balanced growth and cash flow, so they could maintain operational stability while maximizing returns on their new mixer.

Solution

After a detailed review of their requirements, we crafted a bespoke finance solution featuring a balloon payment. This structure effectively lowered their monthly costs, enabling Mark and Karl to make the most of their new equipment without impacting their liquidity. By deferring a portion of the payment to the end of the financing term, they could focus on optimizing the mixer’s productivity from day one while managing cash flow more efficiently.

Outcome

The flexible financing structure has allowed Mark and Karl to integrate the volumetric mixer seamlessly into their operations, with the equipment staying in high demand since delivery. The mixer’s productivity gains have proven invaluable, allowing them to complete more jobs daily and enhance service offerings. Their satisfaction with both the new equipment and our service has solidified our long-standing partnership, keeping us as their trusted financing partner through each stage of their growth.

Conclusion

Our partnership with Mark and Karl exemplifies the impact of personalized, flexible financing solutions for family-run businesses. By aligning our solutions with their cash flow needs, we have supported their growth ambitions while ensuring financial peace of mind. We’re honoured to play a role in their ongoing success and are grateful for their trust in our services.

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