Case Study: The Finance We Told Them Not To Take

Over the years, one of the hardest conversations I’ve had with business owners is telling them not to borrow money.

That might sound strange but sometimes getting finance today is the wrong decision.

A mechanical services business in Western Australia came to us around six months ago looking for working capital.

Like many businesses, they’d built up some ATO debt. They’d also had a handful of direct debit dishonours, which meant their business bank statements weren’t where they needed to be.

Could we have found them finance?

Yes.

Would it have been the right finance?

Probably not.

At that point, all they were likely to qualify only for expensive funding, and most likely a term loan rather than the line of credit they actually needed to support their business.

So instead of arranging finance, we gave them a plan.

Pay down the ATO debt. Tighten up the bookkeeping. Keep the business account running clean. Then come back in six months.

To their credit, that’s exactly what they did.

When they returned, the conversation was completely different.

We secured them a $250,000 unsecured overdraft linked directly to their everyday trading account.

They didn’t have to change banks.

There were no establishment fees, no line fees, no monthly fees and no management fees.

Most importantly, they now have a genuine backup line of credit they can leave sitting there until they need it, without paying ongoing costs just to have it available.

They’re thrilled with the outcome.

Good finance isn’t just about getting approved for any loan.

Sometimes the best outcome comes from spending a few months improving your position so you qualify for a much better solution.

If you’re not sure whether now is the right time to apply for finance, reach out.

Sometimes the best advice you’ll receive is to wait.

Dark Horse Financial

Get a better loan.