A $1.2m equipment loan approved in three weeks

Indicative performance data

A Brisbane manufacturer with $9m turnover · Finance Ready Pack

A $1.2m equipment loan approved in three weeks

The owner needed a new production line to take on a large contract and had been told by the bank to come back with a forecast.

$1.2m loan + $250,000 overdraftFinance approved

1.6 timesDebt service cover (tightest year)

3 weeksTime to approval

Finance needed, $m

What the owner planned to ask for$1.2m

What the forecast showed was needed$1.45m

Up $0.25m

Where the gap was

The new contract's 60-day payment terms needed a $250,000 overdraft increase the owner had not asked for. Asking for both at once got approval in three weeks.

Insight

The three-way forecast showed the business could service the loan comfortably (debt service cover of 1.6 times in the tightest year), but only if the new contract's 60-day payment terms were financed with a modest overdraft increase that the owner had not asked for.

Advice

Ask for the equipment loan and a $250,000 overdraft increase together, and present the covenant tests and cash low point up front.

Opportunity

The contract taken on without a cash squeeze in its first six months, and a lender narrative that answered the credit analyst's questions before they were asked.

Results

Both facilities were approved three weeks after the pack went in, without a request for further information.

Indicative performance data: scenario-based, narrative-driven figures. The figures demonstrate the potential impact of informed planning and financial decision-making. A full case study walk-through is available on request.

This is the kind of work done in a Finance Ready Pack: $3,000 to $8,000 plus GST (scoped), 3 to 4 weeks.

A full case study walk-through of this example is available on request. Ask for one.

A $1.2m equipment loan approved in three weeks