CASE STUDY: Fast Funding For New Trucks
- Commercial Finance Advisor
- Dec 14, 2024
- 2 min read
A Sydney logistics operator secured contracts from six major retailers to deliver furniture and appliances across NSW. To fulfil these contracts quickly, the business needed new trucks but traditional asset finance wasn’t immediately available due to existing commitments. A short-term property-backed loan bridged the gap, and allowed the business to take on the contracts.
The Business Challenge
The operator needed approximately $610,000 to acquire three prime movers and trailers to start the contracts on time.
The deliveries were time‑sensitive, and delays would risk losing revenue and damaging client relationships.
While the business was profitable and had a solid future cash flow, existing fleet finance limited access to new traditional equipment loans. There was also a requirement to cover operational costs such as fuel, insurance, and driver wages.
The Fast Funding Solution
Property‑backed Caveat Loan
A caveat loan of $630,000 was secured against the owner’s investment property.
The loan was made available within days, allowing immediate purchase of vehicles.
Interest‑only repayments applied during the short-term period.
Asset Finance Refinance
Once the trucks were operational and revenue stabilised, the caveat loan was refinanced into an equipment finance facility secured solely against the trucks and trailers.
The term matched the asset life (1–7 years), preserving working capital and releasing the property from ongoing security.
Potential Benefits
The business delivered the contracts successfully, strengthened its earnings, and secured a more sustainable financing position through the use of a property-back caveat loan and asset finance. This not only preserved the owner’s property equity but also reduced overall financing costs over time.
Why This Works
By combining a fast caveat loan with longer-term asset finance, the business could act quickly to secure revenue-generating contracts while keeping repayments aligned with asset use. This approach reduces reliance on property as collateral in the long term, preserves equity, and provides a lower-cost, sustainable funding structure.
This approach bridges immediate needs while transitioning into a finance solution aligned with how the business actually earns and uses its assets.
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DISCLAIMER: This case study is illustrative only and may be hypothetical or partially fictitious. Details may be modified to preserve confidentiality and should not be relied upon as a representation of any actual client outcome. Finance options are subject to individual lender credit criteria, approval, and applicable terms and conditions. This content is general information only and does not constitute financial, legal, tax, or accounting advice. Our firm provides business consulting and finance broking services only and recommends that readers seek independent professional advice tailored to their specific circumstances.
