Case Studies

An established freight and plant hire business came to us after the ATO had issued them a Director’s Penalty Notice (DPN). Like many business owners, they had found their existing finance connections could not assist them once the ATO had issued either a DPN or a default for tax debt on their credit file. Assessing their situation it was clear the business was profitable and could service a loan of the size required to clear the ATO debt.   Leveraging the business’s substantial fleet, which was almost all owned outright, we approached an equipment finance provider that was happy to look past the ATO’s enforcement action to provide a Tax Debt Loan. Using the client’s trucks and other assets, an equipment finance capital raise was completed that paid the ATO debt of $400,000 out in full with a repayment term over 5 years. Tax debt sorted! Benefits of A Capital Raise Secured By Equipment The tax debt loan solution provided for the freight and plant hire business not only addressed the immediate concern of the Director’s Penalty Notice (DPN) issued by the ATO but also supported a longer term financial solution that helped ensure the business could move forward without further disruptions. Several features made this solution the ideal fit for the client. Key Features of the Solution Extended Repayment TermThe ability to secure a 5-year repayment term was pivotal in ensuring the client could service the loan without straining cash flow. Many short-term loans often exacerbate financial difficulties, particularly when a business needs to make larger repayments in a shorter period. With the tax debt loan structured over five years, this provided the business with manageable monthly repayments, allowing them to focus on their day-to-day operations and ongoing expansion without financial stress. Fleet-Based CollateralThe client’s fleet of trucks and other plant hire equipment provided substantial collateral, which was key to securing a loan of this size at a lower rate. Specialist Equipment Finance ProviderOne of the key reasons this solution worked so well was the involvement of an equipment finance provider familiar with dealing with ATO-related challenges. Many traditional lenders shy away from businesses with ATO debt, particularly when enforcement action has begun, like in the case of a DPN. However, the chosen finance partner had a deep understanding of the industry and was willing to assess the business beyond the ATO notice, focusing on its long-term profitability and the strength of the assets. ATO Debt Paid in FullClearing the ATO debt in full immediately removed the threat of further enforcement action from the ATO which could have escalated to a Statutory Demand. Why This Was the Right Solution For businesses facing tax debt, particularly when dealing with ATO enforcement action, finding a lender willing to look past the black marks on their credit file is a challenge. In this case, the combination of the business’s profitability and their asset list presented an opportunity for a lender with the right risk appetite to step in. By opting for a loan secured against their fleet, the client avoided more drastic measures, such as selling off assets or stacking multiple expensive unsecured loans to secure the amount of funding required. The flexibility provided by the 5-year repayment term allowed the company to spread out repayments in a way that aligned with their cash flow cycles, ensuring they wouldn’t be caught short in other areas of the business. The equipment finance provider also understood the nature of the plant hire and freight business, appreciating the importance of keeping the client’s trucks and equipment operational. This tailored approach ensured the loan was structured in a way that didn’t interfere with day-to-day operations or restrict future borrowing capacity for other business needs. Long-Term Benefits for the Business Beyond just solving the immediate issue of tax debt, this financing arrangement positioned the company for future success. By clearing the ATO debt, the business directors could restore their focus on business growth, taking on new contracts without the worry of ATO intervention. In addition, the business retained control over its fleet, which is critical to its revenue generation. This is a prime example of how an intelligently structured loan can simultaneously address financial stress and preserve the operational capacity of the business. The equipment finance structure meant that, instead of selling off key assets, the client could continue generating income through their plant hire services while gradually paying down the loan. Conclusion This $400k tax debt loan, secured by leveraging the business’s existing assets and spread out over a manageable 5-year term, was the perfect solution for a business in a tough spot with the ATO. Not only did it solve their immediate tax issues, but it also provided breathing room to focus on future growth. Need a tax debt loan solution?  Talk to an expert. Find Secured and Unsecured Bad Credit Loans for Your Business Funding is crucial for the growth of any small and medium enterprise. For businesses with bad credit, a good loan can help with financial recovery. Additionally, regular repayments can help repair a low credit score. If you need funding, loan experts can help guide you to the right loans, whether you have assets to use as security or not. Contact Us Here

Prior to COVID, our client had a thriving commercial plumbing business. Like many in the industry, the pandemic hit hard, with reduced contracts and delayed payments leading to financial strain. However, as the market picked up again post-COVID, their numbers began improving steadily. Still, the burden of the pandemic remained in the form of costly, self-sourced loans that created a significant drain on their cash flow. On top of this, the business had accumulated $1M in tax debt. The client was faced with two potential solutions: consolidate their existing debts into a more manageable loan or consider restructuring the business entirely. With the future looking brighter for their business, consolidation became the preferred choice. Their turnover and cash flow were strong enough to support a $1.1M unsecured loan over five years. However, while loans of up to $250,000 can sometimes be obtained without the need for extensive documentation, larger loans – particularly unsecured ones – typically require financials. The company’s financials had taken a hit during the pandemic, and with losses on the books, the unsecured option was off the table. The Tailored Solution: Secured Loan with Capitalised Interest Recognising these challenges, we adopted a two-step approach to provide the client with the financial relief they needed. First, we secured a $1.1M first mortgage loan, backed by property as collateral. By securing the loan against property, we were able to access a more flexible and favourable lending option that allowed the business to maintain liquidity. One of the key features of this solution was the decision to capitalise the interest on the loan. This strategy meant that the interest accrued on the loan was added to the loan balance rather than requiring regular interest payments to be made. For the client, this provided two key benefits: Cash Flow Relief: By capitalising the interest, the client was able to redirect their available cash flow to more pressing business concerns, including paying down their $1M tax debt. This approach allowed them to stabilise their financial situation without the immediate strain of servicing both the tax debt and the loan simultaneously. Flexibility for the Future: The capitalised interest approach also created breathing space for the business to recover from its pandemic-related losses. By the time the interest needs to be repaid, the business is expected to be on even firmer financial ground, with stronger cash flow and better financials. This would enable them to refinance the loan or even explore unsecured lending options once their financial situation improves. Why This Loan Was the Right Fit In this case, the combination of a first mortgage loan with capitalised interest was crucial in allowing the business to address its immediate challenges while providing room for future growth. Here’s why this was the ideal solution: Secured Loan with Lower Interest Rates: By securing the loan against property, the business was able to access a loan with a lower interest rate than would have been possible with an unsecured loan. This ensured that the overall cost of borrowing was manageable, despite the larger loan amount. Avoiding ATO Enforcement: The capitalisation of interest gave the business the breathing space it needed to focus on paying off its tax debt. This is significant because it helped them avoid any potential enforcement action by the Australian Tax Office (ATO), which could have included garnishing accounts or placing liens on assets. By proactively managing the tax debt, the business was able to maintain control over its financial future. Improved Financial Outlook: The structure of the loan was designed to align with the company’s projected financial recovery. With turnover increasing and cash flow stabilising, the business is expected to be in a much stronger position within a year. At that point, they will be far enough removed from the loss-making pandemic years to consider refinancing the loan or transitioning to an unsecured option with more favourable terms. Key Benefits of This Approach Preserving Cash Flow: Capitalising interest allowed the business to preserve its cash flow for day-to-day operations and critical payments like tax obligations, which was vital to its continued operation and recovery. Future Flexibility: This strategy provided the client with a clear pathway to financial recovery. After one year, the business could refinance the loan under more favourable terms or secure unsecured financing once they’ve demonstrated improved financials. Tailored Solution for Unique Challenges: This loan was structured with the unique challenges of the business in mind. The post-COVID recovery created an opportunity for growth, but also highlighted the need for a financing solution that wouldn’t strain the business’s resources. A first mortgage, combined with capitalised interest, was the perfect balance between providing necessary capital while keeping short-term obligations low. Strategic Debt Management: By choosing consolidation over restructuring, the business retained full control over its operations while addressing its debt obligations. This solution also ensured that their tax debt was managed, reducing the risk of future penalties or enforcement action. In conclusion, this case study demonstrates how a strategically structured loan – even a secured one – can create substantial value for a business, especially when navigating a post-crisis recovery. At Dark Horse Financial, we understand the need for tailored financial solutions that don’t just solve problems but also enable businesses to thrive in the long term.

Our client came to us needing an urgent funding solution until they recognised several hundred thousand dollars. With cash flow in short supply until their funds were paid, they needed a solution with capitalised interest that could be paid out at the end of the term. While private lending solutions usually fit this description, they’re not viable to fund such a small amount as the cost of valuations and other fees means they’re generally unsuitable for loans under $250,000. A new private lender providing funding secured by an asset of value was the perfect fit as our client had vehicles they didn’t need on the road during the term of the loan. The lender literally describes their solution as “like a cash convertors for business.” This is definitely not a loan for everyone but can be a solid solution in the event you need bridging finance or have an opportunity to secure when other lending solutions aren’t available to you. Features and Benefits of the $40,000 Asset-Backed Bridging Loan One of the key features of this loan is the flexibility in its security structure. Unlike traditional bank loans that require stringent credit checks, financial statements, and often property as collateral, this loan was secured by business assets, specifically vehicles. For businesses that are asset-rich but temporarily cash-flow poor, this form of financing can unlock much-needed liquidity without the long wait times associated with more conventional lending processes. No Financials or Bank Assessment Needed A standout feature of this loan is that the borrower did not need to provide detailed financial records or undergo a bank assessment. Many businesses, particularly those that are scaling or dealing with temporary cash flow shortages, often struggle to meet the high documentation demands required by traditional lenders. This can significantly delay the funding process, which is not an option when quick access to cash is critical. With this loan, the streamlined approval process meant that the client could secure the funds urgently without the typical barriers that banks often impose. Capitalised Interest – Paid Out at the End of the Term Another key benefit is the structure of the loan’s repayment. The capitalised interest feature allows borrowers to avoid making regular interest payments during the loan term, which can further strain cash flow. Instead, the interest is rolled up and payable at the end of the loan term. This provides breathing room for the borrower, who expects a large influx of funds to cover the total repayment once the loan matures. A Good Fit for Bridging Finance Bridging finance, in its essence, is designed to cover short-term financial gaps, making it an ideal solution for businesses in need of urgent liquidity to carry them over until they can secure a more permanent source of funding. In this case, the client had significant funds due to them, but these were not accessible immediately. The bridging loan gave them the flexibility to continue operating without disruption, with the peace of mind that they could pay off the loan once their larger funds came through. Suitability for Smaller Loan Amounts Typically, private lending is better suited for larger loan amounts due to the costs associated with valuations and other fees. However, in this case, the lender’s unique approach to securing the loan with any asset of value made it viable for a smaller loan amount of $40,000. This flexibility is rare in the private lending space, making this lender stand out for clients who need quick funding for relatively small amounts but do not wish to incur the high costs associated with larger valuations or more extensive due diligence. Flexibility in Asset Security The client’s ability to use vehicles they didn’t need on the road during the loan term demonstrates the flexibility of the lender’s requirements. Unlike traditional loans that may require property or significant business assets to secure the loan, this asset-backed loan opens up opportunities for businesses to tap into non-essential or idle assets. This feature can be crucial for businesses with fluctuating operational demands, such as logistics or transport companies that may have periods where their fleet is underutilised. No Property Security Needed For many business owners, offering property as security for a loan can be risky and undesirable, especially if they are already leveraging their real estate assets for other commitments. The asset-backed nature of this loan avoids the need for property security, allowing business owners to retain control of their real estate while still accessing funds. This is particularly beneficial for businesses that are in the growth phase and may need to reserve their property equity for future expansion plans or larger financing needs. Conclusion While not suitable for all borrowers, this $40,000 asset-backed bridging loan provides a niche solution for businesses needing short-term liquidity without the hassle of property security, financial assessments, or ongoing interest payments. It offers an innovative way for businesses to leverage assets they may not currently need, giving them the flexibility to maintain cash flow and operations until larger funds become available. By providing an option that is both fast and flexible, this loan serves as a valuable tool for business owners in need of urgent, short-term financing.  

Forget progress claims finance—do this instead… With new contracted work about to come on after a sustained period of growth our client approached us seeking a working capital solution to cash flow their operations in the next round of jobs. Working in the commercial construction sector they had significant funds held back in retention and required $250k in working capital. We approached a lender and who offered a 5 year unsecured term loan within 48 hours An added benefit, this lender discounts interest for early repayment with a policy that charges the next fortnight’s scheduled interest and forgives the rest. The 5-year term makes for a lower repayment throughout the loan and the early repayment policy saves interest meaning the best of both worlds. With this lender having a favourable attitude to repeat borrowers and still accepting applications from businesses operating in the commercial construction sector this loan solution compares favourably to Progress Claims Finance which can be expensive. Why This $250k Unsecured Term Loan was the Perfect Solution This case highlights a scenario common among commercial construction businesses where significant funds are tied up in retention. These funds, often held back as a safeguard against potential project defects, can create a cash flow strain when companies need capital to pursue new projects or sustain operations. For this client, securing $250k in working capital was crucial to maintaining momentum and ensuring operational smoothness as they moved into their next phase of contracted work. Key Features of the Loan Solution 1. Unsecured Loan One of the most attractive aspects of this loan was that it was unsecured. For businesses operating in construction, where assets may be tied up in equipment, land, or property, an unsecured loan eliminates the need for offering security. Without the need for valuations the loan assessment was faster and easier than it would have otherwise been. 2. Fast Approval Time Speed was another critical factor in this loan’s success. The lender’s ability to approve the $250k loan in just 48 hours provided a rapid solution to the client’s immediate working capital needs. For a business with time-sensitive projects, the ability to receive funds without the usual lengthy waiting periods can make all the difference by having the working capital to invest into the new project. 3. 5-Year Term for Better Cash Flow While short-term loans can be beneficial for businesses that want a faster repayment period, they often come with higher, more frequent repayment instalments, which can place a strain on cash flow. By opting for a 5-year term, the client secured a much more manageable repayment schedule. This preferred loan term provided lower monthly payments, ensuring that the business could comfortably maintain its cash flow and continue funding new projects while still servicing the loan. The Benefit of Early Repayment One standout feature of this loan was its early repayment policy. The lender’s flexible attitude toward early repayment added significant value to the agreement. Under this policy, if the client decided to repay the loan early, they would only be required to pay the next fortnight’s scheduled interest. The rest of the interest would be forgiven. This flexibility allows businesses to take advantage of their fluctuating cash flow patterns. For example, once funds tied up in retention are released, or they receive their progress payments, they can pay off the loan early without being burdened by excessive interest charges. The policy effectively allows businesses to get the best of both worlds: a long-term loan for manageable repayments and the opportunity to save on interest when their cash flow allows. Comparison to Progress Claims Finance In the construction industry, progress claims finance is often used to manage cash flow gaps. While this form of financing serves a similar purpose, it typically comes at a higher cost, both in terms of fees and interest rates. Progress claims finance often involves less flexibility more conditions, and the fees can cut into profit margins. In contrast, the $250k unsecured term loan offered a much more cost-effective solution. Not only did it provide immediate access to working capital, but it also did so without the heavy fees that are sometimes associated with progress claims finance. Additionally, the flexibility in repayment terms and the ability to repay early without penalty made this loan a more sustainable and attractive option for the client. Ongoing Relationship with the Lender Finally, another advantage of this loan was the lender’s favourable attitude toward repeat borrowers, particularly those in the construction industry. For businesses that frequently need access to working capital, building a strong relationship with a lender that welcomes repeat borrowing can be a strong benefit.

Any business owner who has led their operation through a high growth phase knows the strain on cash flow this kind of strategy can cause. A food manufacturer with a foothold in all major supermarkets our client was expanding into a new state to continue their exciting growth trajectory. Due to the nature of their high quality products, manufacturing facilities need to be setup as regional hubs to support distribution in a localised way. While this ensures a high quality product, this strategy also demands significant resources from working capital and places pressure on maintaining tax obligations, payroll and other operational expenses. Expecting their major bank to assist, our client had been disappointed with their response before coming to us, as the bank had decided on a conservative approach and was not keen to provide funding until after the growth strategy had been completed. This let-down left the business owner seeking urgent funding and their existing finance broker referred them to us after they were out of ideas. Understanding the cash flow cycle of a manufacturing operation we knew where we could access funds fast with an unsecured business overdraft. With an application placed on a Thursday we called on relationships at a senior level, gained a policy exception and approval for settlement and funding the next day. That’s right – an unsecured business overdraft applied for, approved and funded in 24 hours. Just in time to support a BAS payment to keep them compliant with their ATO payment plan. The business was over the moon with what achieved and how fast we executed. Cash flow sorted. Why This $300k Unsecured Business Overdraft Was the Perfect Solution The $300k unsecured business overdraft was more than just a temporary fix for our client’s immediate cash flow issues. It was a carefully tailored solution that addressed their unique needs and supported their need for working capital and cash flow. Let’s break down why this loan was such a perfect fit and how it benefited the business beyond simply bridging the cash flow gap. 1. Flexibility Without Property Security On The Line One of the most significant advantages of an unsecured business overdraft is that it doesn’t require the borrower to provide a mortgage over a property as collateral. For a business that’s in a rapid expansion phase like our client’s, this flexibility is crucial. They already had their working capital tied up in the new facilities and distribution hubs. Asking them to put up property or other assets would have not been a desirable solution and taken weeks to execute. By opting for an unsecured solution, they could access funds quickly without tieing up property into a secured business loan. This provided peace of mind and allowed the business to maintain focus on growth rather than worrying about asset valuation or collateral commitments. 2. Speed of Approval and Settlement With BAS payment deadlines looming and payroll to make, time was essential for our client. The speed at which we were able to get this overdraft approved and settled was critical for keeping the business on track. By leveraging our industry contacts and pushing for a policy exception, we were able to get the loan approved in just 24 hours—an almost unheard-of turnaround time, particularly for unsecured financing. This speed was instrumental in ensuring that the business remained compliant with its tax obligations, avoiding any potential penalties or disruptions from the ATO. More importantly, it allowed the business to continue operating smoothly without the pressure of missed payments or operational hiccups that can often arise during rapid expansion phases. Take care of the ATO with a Tax Debt Loan 3. Ongoing Access to Cash Flow An overdraft differs from a traditional loan in that it provides an ongoing credit facility. This means the business didn’t just receive a lump sum of money—they now have continuous access to funds as needed, up to their $300k limit. For a manufacturing business dealing with fluctuating demand, variable expenses, and the complexities of supply chain management, the flexibility of a revolving business line of credit is invaluable. The client can draw down the overdraft when needed, and only pay interest on the amount they actually use. This allows for optimal cash flow management, giving them the power to address unexpected expenses, manage payroll, or purchase additional materials as their business needs dictate. 4. No Early Repayment Penalties Another key feature of the unsecured overdraft is that it offers the business freedom to repay the borrowed amount without incurring any early repayment fees. This feature aligns perfectly with a high-growth business model where revenue cycles can be unpredictable. As the business starts generating more revenue from their new market and expands its presence, they’ll be able to repay the overdraft without any financial penalties, providing maximum flexibility. In other words, they won’t be locked into a rigid repayment schedule, allowing them to allocate funds as necessary for future growth opportunities. 5. Strengthening the Business for Future Lending Opportunities Securing this $300k overdraft not only provided immediate relief but also strengthened the business’s financial standing. By maintaining cash flow, adhering to their ATO payment plan, and continuing with their growth strategy, the business is positioning itself for future success. Does Your Business Need An Unsecured Business Overdraft? In this case, the $300k unsecured overdraft wasn’t just a quick financial fix—it was a carefully structured solution that supported both the immediate and long-term goals of the business. It allowed our client to maintain cash flow, continue with their ambitious growth strategy, and stay compliant with the ATO, all without the burden of property security or being tied down by rigid repayment terms. Does your business need an unsecured business overdraft? Talk to an expert.

An electrical and data contractor came to us looking to raise working capital to cash flow their upcoming jobs. With an overdraft and existing term loan already they were looking for a solution that was easy on cash flow. We refinanced their existing term loan and provided them $95k of new lending all over a 5 year term. Unlike other unsecured lenders, this solution is the longest term offering in the market outside of the banks. An added benefit is their early payout treatment, as the lender forgives future interest This means our client had lower repayments and gets the benefit of discounted interest when they payout early. This a great alternative to expensive progress claims finance or if you don’t want to be locked into a contract from an invoice finance provider. Why This Unsecured Term Loan Was the Right Solution When it comes to financing for businesses like electrical and data contractors, cash flow management is critical. The client’s existing financial obligations, combined with the need for additional working capital, required a solution that provided both flexibility and affordability. This $250k unsecured term loan offered several distinct advantages over traditional financing options, making it an ideal choice for the client. Flexibility with Long-Term Repayment Options One of the standout features of this loan is its five-year term, which is notably longer than what is typically available from unsecured lenders in the market. This extended term significantly reduces the strain on monthly cash flow, allowing the client to manage their finances more effectively without the pressure of large, frequent repayments. By spreading the repayments over a longer period, the business can focus on growth and operational efficiency, rather than being burdened by financial obligations. Lower Cost of Borrowing with Early Payout Benefits Unlike many other financing options, this loan offers a unique early payout feature where the lender forgives future interest if the loan is paid off early. This not only incentivizes early repayment but also provides substantial cost savings to the client. By reducing the total interest paid over the life of the loan, the client can redirect those savings into other areas of the business, such as purchasing new equipment, hiring additional staff, or expanding into new markets. A Strategic Alternative to Progress Claims Finance Progress claims finance is often used in industries like construction and contracting, where payments are received incrementally as work progresses. However, these financing options can be expensive and may tie the business to rigid repayment schedules that don’t align with the actual cash flow. The $250k unsecured term loan provides a more flexible and cost-effective alternative, allowing the business to access the necessary funds upfront without being locked into the restrictive terms often associated with progress claims finance. Avoiding the Pitfalls of Invoice Finance Contracts Invoice finance is another common option for businesses looking to bridge cash flow gaps, but it comes with its own set of challenges. Invoice finance agreements can be complex and often require businesses to commit to ongoing contracts, which may not always be in the best interest of the client. In contrast, the unsecured term loan offers a straightforward, one-time financing solution without the need for ongoing commitments. This allows the business to maintain control over its finances and avoid the potential downsides of long-term invoice finance contracts. Enhanced Cash Flow for Upcoming Projects The primary goal of this loan was to provide the working capital needed to cash flow upcoming jobs. With the funds secured, the business can confidently take on new projects, knowing that they have the financial backing to support their operations. This level of financial security not only empowers the business to grow but also positions them as a reliable contractor in the eyes of their clients, leading to more opportunities and potential for future contracts. Conclusion This case study highlights the importance of selecting the right financial solution tailored to the specific needs of the business. The $250k unsecured term loan provided the perfect balance of flexibility, affordability, and strategic benefits, enabling the electrical and data contractor to manage their debt, secure additional funds, and maintain healthy cash flow. Need a debt consolidation solution? Talk to an expert.

Our client came to us experiencing a severe cash flow squeeze they needed to remedy asap. A chemical manufacturing business, they had experienced rapid growth consistently doubling turnover year after year in a short space of time. While profitable on paper, in the past to support their accelerated growth they had used the fastest credit they could access rather than the best loan type and right lender for their circumstances.   Attempts to rectify this with other finance brokers had led them to a Trade Finance and Invoice Finance solution at a lender whose policies worked against facilitating the cash flow support their business needed. It was the epitome of right loan solution but wrong lender. It cannot be stressed enough that there are brilliant cash flow lenders and there are lenders who are absolutely the wrong choice for a lot of circumstances. Trade finance is a line of credit to support the purchase of material supplies.  It’s a great solution for manufacturing businesses and any business that has high material inputs and bills on terms that has them being paid some time later. The problem our client was facing was the lender they had been placed with does not prioritise Trade Finance as a solution and often takes 21 days to approve a supplier invoice to be paid under their Trade Finance line of credit. That’s too slow. Many businesses have similar complaints about this lender’s operational support for invoice finance and describe it as unworkable for their circumstances (commonly it’s manufacturing or transport business owners making these complaints). The client’s cash flow situation was further complicated by expensive Rent to Own Truck Finance and an unsecured line of credit that paid back over a very short period of time, with an astronomical interest rate and daily direct debit repayments. Their monthly expenditure on these last two features alone required a whopping $91,000 a month in payments to be serviced. Looking at the client’s asset register we recognised that we could use the vehicles and other assets as security to raise capital and their turnover supported a far larger trade finance facility. A the right lender the trade finance could be paid out from an invoice finance facility giving our client 180 days total cash flow support from a lender who we knew would support this finance structure to actually work. Our solution brought down the monthly outgoings for finance by almost $70,000 a month. A simply massive shift in cash flow. Here’s how the solution was structured: $500,000 limit Trade Finance Facility $1.25M limit Invoice Finance Facility $700,000 Capital Rase against Plant & Equipment Growth or not – this kind of solution and choosing the right lender is the difference between winning in business or not being in business. Why Choosing the Right Lender Matters As far as long term outcomes go, choosing the right lender can be more important that choosing the cheapest rate on offer.  This is because how a lender manages their processes for working capital solutions like trade finance and invoice finance, which are both a line of credit solution, makes a massive difference to your operational effectiveness. In this case study, the trade finance and invoice finance the client had before coming to us was not working.  As a manufacturing business ,which was growing significantly, they needed a fast solution when their stock levels were depleted.  However, their previous lender took at least 21 days to process trade finance requests.  This meant the business owner could not replenish stock and take advantage during their seasonal periods of strong sales.   They were hamstrung by poor process and policy right when their business was making great sales and moving tonnes of product. To cover the lender’s inadequacies they had turned to a fast unsecured loan provider.  While this got them the capital they needed to buy material supplies fast, the lender they had chosen had a very high rate and daily direct debit repayments.  While they could manage these repayments in their peak season of sales, they were stressed and under tremendous cash flow pressure in the offseason.  Worse than that, the two solutions they had cobbled together to make sure they could continue to operate were more expensive than they needed to be. The Right Solution Should Actually Improve Your Circumstances We knew which lender would support this customer the right way.  Structuring their lines of credit correctly gave them up to 180 days of cash flow support from when they paid their suppliers right through until their customers paid their invoices.  By getting this right we were able to lower their monthly finance commitments from $91,000 per month to $21,000 – a massive difference! If you need help with a line of credit for your business talk to an expert.

Our client runs a commercial plumbing business with over 40 staff and was waiting on payment for over $1M of invoicing. With a significant percentage of their work coming from the commercial construction sector, they, like many other business owners, were impacted by large contractors paying late. These late payments from contractors had created a temporary cash flow squeeze that had the potential to impact the following week’s payroll if contractors continued to delay payment. For this reason, they were looking to raise capital fast and asked their overdraft provider for an extension to their line of credit.  Their overdraft provider in turn reached out to us to obtain property security for the client and begin an assessment that would have taken more time than the client had. Understanding the client’s business is strong, despite the temporary cash flow squeeze, and they were only seeking a solution for a week or two until invoices were paid, we recommended an unsecured term loan that provided a genuine discount on interest for early repayment. On early repayment this lender’s policy is charge the next fortnight’s interest and then forgive the rest no matter how long is left on the term. This genuine discount on interest is differs to other unsecured lenders as, while some of them might provide a discount shortly after settlement on a sliding scale, many will charge all of the interest on a loan irrespective if there is a year or two to go when it’s paid out. Importantly, we also knew our chosen lender had capacity to assess and settle the loan within 48 hours. Our client agreed with the recommendation and they were very happy their application was approved in just a few business hours and settled with funds in their account the day after. Payroll sorted! Get a loan Why This Loan Solution Was Right For This Plumbing Business The client initially reached out to their overdraft provider for a limit extension but this wasn’t the best solution for their needs.  While their unsecured overdraft provider had been a great option a few years ago to set up a line of credit, their existing lender had changed their appetite for borrowers connected to commercial construction.  What previously had been a fast no doc application process now requires full documents that include year to date financials as well as the previous 2 year’s financials, tax portal information and property security.  A loan with these application requirements was not going to work given the funding time requirements. A Fast Loan Solution With payroll in less than a week away, the plumbing business owner needed a very fast business loan solution.  This was not going to happen with their overdraft provider asking for a full doc line of credit application with property security. One of the least talked about but most important factors in selecting the right lender for your loan is making sure the lender you’ve chosen has the capacity to settle the loan you need in the timeframe you need it.  The unsecured lender we recommended for our client’s needs had been consistently assessing loan applications within 24 hours and making an approval decision the same day.  This gave us confidence they could fund our client in the timeframe required, which we were very pleased to see certainly proved to be the case. Discounted Interest For Early Payout Many unsecured loans are a fixed loan term product.  This means that many of them will not provide a discount despite their loan being paid out ahead of schedule.  The client was waiting on a high value of invoices to be paid, that once received would be more than enough to clear their loan balance.  The lender we recommended provides a discount for early repayment.  When the loan is cleared, they will charge the next fortnight’s interest only and then forgive the rest even if there is up to 5 years remaining on the loan.  The discounted interest is a great policy feature that would work for any business owner seeking to pay out their loan ahead of schedule and it certainly worked for our client who was very pleased they would be saving thousands off their loan costs. Conclusion: Fast, Flexible Financing Solutions for Australian Businesses By understanding the unique needs of our client’s plumbing business and leveraging our extensive knowledge of lender policy and turnaround times, we were able to: Quickly identify an appropriate unsecured loan solution when traditional options weren’t suitable Secure approval and funding within 48 hours, ensuring payroll obligations were met Recommend a lender offering genuine interest discounts for early repayment, saving our client thousands of dollars Whether you’re dealing with late-paying contractors, unexpected expenses, or growth opportunities, our team is equipped to find the right financing solution for your business. Don’t let temporary cash flow issues hold your business back – contact Dark Horse Financial.

Our client was referred to us by their financial advisor. A business selling and servicing power saws and other tools, they were seeking $100,000 for an immediate need. Initially thinking some kind of term loan could be the solution the business owner was looking for help to select the right loan. Understanding their business, we explained there was a non-bank business line of credit product that had no establishment fees, would support working capital into the future and offer a longer term option than most unsecured term loan options. The client agreed with our recommendation and an application based on assessment of the business’s bank account statements was completed with an approval given in 24 hours for a $250,000 limit. Good business – happy client. I want a Business Line of Credit Why This Solution Was Right For This Client Retail businesses can be significantly impacted by seasonal cash flow constraints, as can many other businesses.  Directors of retail businesses can feel that different times of the year feel like either a feast or a famine.  Most unsecured term loans on the market are relatively short in length and can range from 5 months to 3 years in duration, with 12 month and 2 year terms being the most common. With short loan terms comes fixed repayment schedules with higher repayments because the loans are paid back faster.  While this means you’re debt free faster with a shorter loan term, loan terms that are not as long as you would like can place a strain on cash flow. This is particularly true if you’re running a retail business that is subject to times of the year with high trade and others periods of the year with lower trade. The features of the unsecured overdraft we recommended for this retail business owner were that the minimum direct debit amount was equal to amortising the loan over a 4 year period – amortising is the loan world’s way of describing to pay off with regular payments.  The benefit of a 4 year amortisation period to our client was they had smaller minimum repayments when they were experiencing the time of the year with less sales and therefore tighter margins but also had the capacity to make extra repayments during the time of year when sales are strong. Business Loan Calculator Fast Application Process A key factor in getting your lender selection right is selecting a lender you know can settle the credit solution you need in the timeframe that works for you.  There are very fast business loans available and this unsecured overdraft is certainly one of them with an application process that takes minutes with us over the phone.  Once we’ve recorded some key details you’re invited to link your business bank accounts for a read only assessment that determines the right limit for your business. For this client, the lender was able to determine their income and expenses over a 12 month period.  They pay particular attention to the last 3 month trend of the revenue into the business and the average cash balance the business was holding in their business bank account.  Red flags for this lender are revenue and cash balances that are trending down sharply and the presence of direct debit dishonours which indicate a liquidity issue.  We had identified before the application that none of these were an issue for our client and, because of this, an approval was granted within hours of them linking their bank statements for assessment. Extra Repayments Lower Interest If you are in the position to make extra repayments at different times of the year, selecting a loan solution that allows you to do so makes a big difference to the overall interest you will pay back and how long your loan lasts.  A genuine line of credit should only have interest charged on the funds you have drawn, which means as you can make extra repayments the balance comes down and the interest is charged on a lower and lower amount.  The benefit of this is your repayment goes to paying back more of the principal debt and less interest. You can turbo charge this benefit by making more extra repayments at the beginning of your loan repayment period.  This also works great on home loans too and can save you tens of thousands in interest and take years off your mortgage. This is different to most unsecured loans as many of the non-bank lenders who offer unsecured loans charge interest with a simple rate that is calculated on the fully drawn loan balance at the time of settlement.  With this kind of loan the interest is equivalent to almost twice as much as the loan solution we recommended to our client which means we’ve saved them big time compared to the fixed term loan solution they thought might be right for them. Lower Fees Another benefit to this loan solution is this business line of credit has no establishment fees, no line fees, no management fees and no monthly fees – there is only an annual fee.  Almost all business loans and lines of credit come with establishment fees and these are commonly between 0.5% and 2% of the loan size but can sometimes be even higher.  Even major banks charge establishment fees and line fees on their business overdraft solutions so the absence of these fees in this solution is a big win for our client. Tailored Solutions for Business Success At Dark Horse Financial, we pride ourselves on finding the right financial solutions for our clients’ unique needs. By recommending a $250,000 business line of credit instead of a standard term loan, we provided this retail business owner with a flexible, cost-effective solution that addresses both their immediate needs and supports their working capital requirements into the furture. The benefits of this approach include: Greater flexibility to manage seasonal cash flow fluctuations Lower minimum repayments during slower business periods The ability to make extra repayments during peak seasons Potential for significant interest

Our client came to us seeking to fund expansion into a new market but started the conversation by telling us we probably couldn’t help them because they didn’t have property to use as security. Understanding they had a solid opportunity due to a related business, they had turnover sufficient to support an unsecured overdraft limit with a non-bank lender and unencumbered equipment in their factory. While it’s common knowledge you can raise capital against vehicles, trucks and trailers, there’s also a wide variety of machinery that can be used as security for a loan with limits available in excess of $1M. This style of loan can be used for debt consolidation, to pay out tax debt as well as funding a growth strategy like our client was seeking. In less than a week an overdraft limit was settled and, a short time after, the additional working capital was paid into our clients account. Growth strategy funded! Need funding to expand your business? Contact us here