Man in hard hat working in building site

Debtor Disputes & the Threat of Default

Client: Construction Industry, QLD

Challenge

Our client, the founder of a large construction company based in QLD, was experiencing contractual disputes with a handful of debtors. As a direct result and despite his best efforts to cover the shortfall, he was falling into arrears on a $200,000 unsecured cash flow loan. 

On joining the Elev8 Business Relief Program, we immediately connected our client with an experienced Commercial Broker. With the completion of an up-to-date Asset & Liability statement, the broker found they had unencumbered machinery available to use as security on a secured loan. As a result, the broker reached out to a specialised Plant & Equipment lender who were happy to approve a $200,000 secured loan with interest-only repayments for 12 months.

Our client not only avoided a default, but with lower outgoings and guidance from our team around cash flow forecasting and management, he is now able to comfortably manage the interest only repayments regardless of any ongoing issues with debtors. The good news continued when our client won a new tender 3 months’ later! Today, our client is well on his way to paying out the equipment financier and has a plan in place with our team to move to a Principal & Interest arrangement once the interest-only period is finished.