Earth Moving Equipment Finance Logan

Securing Civil Equipment Finance for a South Brisbane Business

Case Study: How Mortar Finance Secured $380,000 Excavator Funding for a Logan-Based Business

Introduction

A growing earthmoving business in Logan, South Brisbane, approached Mortar Finance seeking funding to purchase a new excavator. The machine was essential for the next stage of their expansion, allowing them to take on larger civil and commercial contracts. Despite their strong pipeline of work, the business had encountered ongoing challenges securing finance through traditional lenders due to being non–property owners and their limited borrowing history. Mortar Finance was engaged to structure a solution that not only delivered the required $380,000 in funding but also ensured the repayment structure remained manageable for cash flow.

Client Requirements and Challenges

The business required $380,000 to purchase a new excavator that would significantly increase operational capacity. However, securing this funding came with several obstacles:

• No property ownership often limits the appetite of major banks to extend large amounts of asset finance.
• A history of major banks declining support, often due to rigid servicing models or blanket security expectations.
• The client needed the loan structured with a manageable repayment profile, ensuring cash flow stability across seasonal fluctuations common in the earthmoving and construction sectors.
• The business had also recently completed a $660,000 capital purchase, which heavily affected their traditional financial statements and could easily distort conventional lending assessments.

These factors meant that a typical full-financial assessment pathway was unlikely to work. Mortar Finance needed a lender and an assessment method that recognised the true strength of the business and its operational cash flow.

The Strategy and Finance Solution

Mortar Finance identified that the client would be a strong candidate for the Commonwealth Bank (CBA) BAS assessment pathway, a product well suited to businesses with robust turnover but limited traditional financial documentation.

Using BAS to Demonstrate Serviceability

Rather than relying on profit-and-loss statements, often impacted by non-cash deductions, growth-related spending, or timing differences, the BAS pathway allowed the lender to assess the business based on actual trading turnover over the most recent 12-month period. Mortar Finance worked with the client to compile:

• The latest 12 months of Business Activity Statements demonstrated stable and high turnover.
• A breakdown of the client’s recent $660,000 capital purchase, including the GST component, which could be added back to strengthen serviceability.

This add-back was particularly important. It ensured the bank viewed the GST outlay on the major purchase as a temporary cash-flow event rather than a true operating expense, providing a more accurate picture of the borrower’s real repayment capacity.

Loan Structure

To keep ongoing commitments manageable, Mortar Finance structured the facility:

• Over a 5-year term
• With a 25% balloon payment

This balloon kept monthly repayments at a level that ensured cash-flow stability while still meeting the lender’s asset finance criteria. The structure allowed the client to retain liquidity throughout the year, crucial in an industry where work cycles, weather conditions, and contract timing heavily influence revenue patterns.

Approval Process

Mortar Finance streamlined the approval process through clear communication and collaboration.

Working With the Client’s Accountant

The team worked closely with the client’s accountant to ensure the correct BAS documentation, GST calculations, and other supporting information were gathered efficiently. This collaboration allowed the submission to be lodged with minimal additional documentation, thanks to the flexible requirements of the BAS assessment pathway.

Fast Turnaround and Clean Approval

Because the BAS assessment fit the borrower profile well and the submission was prepared thoroughly, CBA issued an approval within just 3 business days. Importantly, the approval came with:

• No major lender conditions
• A straightforward settlement process
• A smooth lodgement with no request for further clarifications or financials

This speed and simplicity were critical for the client, who needed to confirm the excavator purchase quickly to meet upcoming project deadlines.

Outcome and Impact

With finance secured, the client proceeded with the purchase of the new excavator, enabling them to take on additional work and expand capacity. The structured repayments, supported by the 25% balloon, ensured the business maintained strong liquidity and uninterrupted operations.

The solution also strengthened the client’s relationship with a major bank, improving their future borrowing capacity as the business continues to grow.

Conclusion

This case demonstrates Mortar Finance’s ability to navigate lender policies, understand the nuances of small business cash flow, and structure finance solutions where others struggle. By leveraging CBA’s BAS assessment pathway, collaborating effectively with the client’s accountant, and designing a repayment structure that supported long-term stability, Mortar Finance delivered a seamless, fast, and strategic funding outcome for the Logan business.

Click here to access all the Mortar Finance services