When the right structure meets the right timing, Hermes delivers under pressure
A Western Australia-based transport business servicing the mining sector with an annual turnover of $20M had entered voluntary administration following the sudden closure of a major client’s mine triggered by a sharp fall in iron ore prices. The financial impact was immediate and severe, leaving a cash flow hole too large to recover from without restructuring.
Although the business had since diversified its client base and stabilised operations, the damage had been done. The directors were now faced with a stark challenge: they needed to repurchase the company’s unencumbered truck fleet from the administrators in order to regain control and keep the business alive.
Traditional lenders weren’t interested. The requirement was viewed as a ‘capital raise’, and the fact that the company was still in VA meant a hard no from nearly everyone.
That’s when the broker stepped in.
Recognising the need for a ‘special situations’ lender, the broker brought the deal to Hermes, backed by a blend of security: the fleet of vehicles and a second mortgage over the director’s property.
The broker requested a 48-month amortising term loan for $5M, with a 6-month interest-only period to help with cash flow as the business emerged from administration. Hermes went further:
Hermes provided a written approval within 48 hours, meeting the administrator’s deadline, and settled shortly after, in time to secure the tender and complete the creditors’ deed.
The result? The business successfully reacquired its assets and is now trading forward with a renewed structure and a clean slate.
We understand the unique challenges SMEs face when cash flow is under pressure.
As a managed fund with a unique capital structure of its own, Hermes is not constrained in the way banks and other credit providers are, allowing a pragmatic approach to structuring and approving credit facilities.
With a lean management structure made up of experts with years of experience, funding solutions can be tailored to your needs, and a term sheet provided within 24 hours.
Customised lending solutions that match business needs.
Financing available within 48 hours.
Designed to match business cash flow cycles.
Collaborative approach to structuring deals.
No hidden fees, clear loan terms.