Growth

The husband and wife owners of a civil contracting business in Victoria – like many – saw their business suffer during the pandemic. Many projects in their region were put on hold. Two years of restricted revenue had depleted their business cash reserves.

A contract maintenance business had been trading for 20 years. They were pleased to win a major contract with the government that required one simple change to the way they billed. They needed to bill for quantities, instead of the “hourly rates” they had used since inception. This turned out to be a nasty trap, and a miscalculation…

Purchasing equipment in a secondary market can be both lucrative and problematic. If done astutely, clients have the ability of picking up high quality assets that are well below market value. However, financing options are severely diminished when not purchasing “new” items.

A client was referred to Hermes to fund the purchase of machinery that would complement their current offerings. This particular asset would allow them to complete the full scope of work within their major contracts – without subcontractors. In turn, this would increase both sales and margins.

Purchasing equipment in a secondary market can be both lucrative and problematic. If done astutely, clients have the ability of picking up high quality assets that are well below market value. However, financing options are severely diminished when not purchasing “new” items.

A client was referred to Hermes to fund the purchase of machinery that would complement their current offerings. This particular asset would allow them to complete the full scope of work within their major contracts – without subcontractors. In turn, this would increase both sales and margins.