News Articles
Side venture mishap costs regional transport business
This month’s case study highlights a special situations case where a transport company was depleted of its cash resources after the directors invested in a pub.
The cash burn on the pub venture led to ATO arrears in the transport business, ultimately making it impossible to fund the business through traditional means.
Funding a mining services business re-boot
Recently, a mining services business dealing with the wet & dry hire of equipment encountered setbacks in the mobilisation of large contracts, after the fleet had been largely either mothballed or retrenched. Despite the long-standing business being historically successful, recent financial data indicated a lack of serviceability – bringing the business to a standstill. The need for funding new equipment, re-certification of mothballed equipment and further working capital was apparent, with a total funding requirement estimated for $1M.
Structuring SME merger and acquisition deals
Hermes was recently approached to consider a Management Buyout of a strongly performing manufacturing business. Despite numerous concerns, Hermes was able to tailor a unique funding solution to help acquire and position an appreciation of the true value of the business.
Wheelhouse, Security & Runway: The Real Deal
In December, Hermes was asked to fund a mining services business with a funding requirement of $6 million, comprising $4 million in term debt and $2 million in debtor finance, for a 12-month period over which time the business would be “turned around”. Hermes applies three key criteria when assessing a funding opportunity, as this month’s case study illustrates. The three criteria can be summed up in three words: wheelhouse, security and runway.
Capital Raise for Transport & Logistics Business
Last week, the financial press reported action being taken by the government to help SMEs better access capital and manage their cash flow. Highlights according to The Australian include forcing large corporations to adhere to 30-day terms and a $2 billion fund to be loaned to SMEs. In our case study this week, we demonstrate how Hermes Capital is ahead of the news cycle with cash flow solutions available that specifically address freeing up cash tied up in accounts receivable.
Clearing up a tax portal to get your finance deal done
An engineering business had accumulated a $1,050,000 tax debt as a result of rapid growth in the civil infrastructure sector. This became a problem when the client needed to show equipment lenders a clear portal for further equipment purchases that needed financing. Hermes reviewed the client’s debtors as well as their other available assets, including a number of unencumbered heavy equipment items and some property with second mortgage equity.
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