Transport & Logistics | Asset Finance | Business Restructure | ATO Debt
Trapped in the Wrong Finance. Here Is How We Rebuilt It from the Ground Up.
A business in the wrong finance structure with significant cashflow pressure and layers of complexity. Here is how a carefully sequenced strategy changed their position completely.
The wrong finance structure. Significant cashflow pressure. And multiple layers of complexity to work through.
When this business came to us, their existing equipment finance arrangement was placing considerable pressure on weekly cashflow. The repayment burden was high, the structure was not right for where the business needed to go, and there were several interconnected issues that needed to be resolved before any lender would consider them.
The business needed to transition from a sole trader structure to a company and trust structure. One applicant carried a prior bankruptcy history. An ATO liability was sitting unresolved. And the property security position across both applicants needed careful consideration.
None of these problems could be solved in isolation. Each one affected the others. What this file needed was not a product. It was a strategy.
Multiple problems running at the same time.
The challenge on this file was not finding the right lender. It was sequencing the right moves in the right order while managing several variables simultaneously.
The business structure transition was advised on and implemented by the client’s accountants, but had to be completed and documented correctly before any lender could assess the application. New banking had to be established in the new entity. Revenue flows needed to be redirected and confirmed in writing. All of this happened during the application process.
The prior bankruptcy history on one applicant narrowed the lender pool and required careful positioning. The ATO liability needed to be addressed as part of the solution. The property security position across both applicants needed to be clearly mapped before any security could be offered.
Each layer had to be handled in sequence, cleanly and transparently, without creating new complications along the way.
“Good finance strategy is not about finding the cheapest rate. It is about building a solution where every piece serves a purpose and nothing creates a new problem.”
Three facilities. One clear outcome. No loose ends.
The client’s accountants advised on and implemented the transition from sole trader to a company acting as trustee of a trust. New business banking was established. Revenue redirection was confirmed in writing with the relevant counterparties. The structure was clean and lender-ready before any facility was drawn.
A cashflow facility was secured to fund the deposit required to release the equipment from the existing rental contract, clear the outstanding ATO liability, cover a scheduled instalment on the incoming asset finance facility, and retain a working capital buffer in the business.
A chattel mortgage replaced the existing rental contract. The business now owns the assets outright from settlement. Weekly repayment cost reduced by over $1,200. A balloon payment structure at maturity provides additional flexibility.
The numbers tell the story.
A business rebuilt. A future that now looks possible.
At settlement the ATO liability was cleared, the assets were owned outright, cashflow pressure had been cut by more than half, and the business held a strong positive cash position.
The business is now operating in the right structure with the right finance behind it. The clients are less stressed. The pressure has lifted. They are working on their business rather than just surviving inside it.
They are now actively working toward purchasing their first home, something they did not believe was possible when we first spoke.
That is what a clean, well-sequenced finance strategy looks like when it is built around the client and not around the product.
Strategy is not a luxury. For some businesses, it is the difference.
This file is for anyone who understands that finance is not just about the rate or the term. It is about the architecture. The sequence. The decision about which problem to solve first and why.
These clients came to us overwhelmed, anxious, and carrying the consequences of poor advice. They left with a clear structure, cleaned-up debt, assets they own, and a business with breathing room for the first time in years.
If you are an adviser, accountant, or business professional working with clients who need more than a product, and more than a lender, reach out. Complex files are what we do best.
Have a client who needs a strategy, not just a loan?
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Book a callThis case study has been prepared by Yasmine Shah, Authorised Credit Representative (No. 540047) of QED Credit Services Pty Ltd (ACL 387856), trading as Impact Brokers, Ethical Finance Australia Pty Ltd (ABN 12 601 144 932). It reflects a real transaction completed by Impact Brokers. All client and identifying details have been withheld to protect the privacy and confidentiality of all parties. No names, organisations, or identifying information have been included. This case study is intended to illustrate the type of work undertaken by Impact Brokers and does not constitute financial, legal, or credit advice. Readers should seek independent professional advice before making any financial decision. Impact Brokers may receive a commission from lenders in connection with any credit facility arranged.