Start-Up Trucking Company – 3-Month-Old ABN

A new client, previously a tipper truck driver, decided to become an owner-driver and aimed to expand his operation with multiple Tipper + Dog combos. Ambitious yet motivated, it was time to build his business application.

The Challenge:

His ABN was only 3 months old, which complicates securing loans since many lenders are hesitant to finance new businesses without substantial proof of serviceability.

Our Approach:

Asset and Liability Statement: We demonstrated that the client had sufficient equity for a significant deposit on a $530,000 purchase.

Negotiation for GST: Arranged for upfront deposit and GST payment to reassure the lender.

Equipment Purchase: The client bought a Prime Mover and was in the process of installing a tipper body for increased efficiency, with a matching trailer in construction.

Financial Planning:

Cash Flow Forecast: Developed a forecast showing a healthy profit margin even with loan repayments, accounting for all operational costs of running the trucks.

Secured Work Contract: With clear terms on expected income, we calculated the monthly turnover, considering fluctuations for peak periods and potential downtime.

Outcome:

We successfully secured the finance for the client, enabling him to not only purchase his initial setup but also expand his fleet with two additional trucks. With meticulous planning, Rockliff Finance was proud to contribute a small part to this client’s burgeoning business and promising future.