A regional Queensland-based excavation and quarrying business with over 20 years of experience recently secured a new project requiring a large 30 ton plus excavator. The business operates with a lean, hands-on model—typically purchasing second-hand machinery in cash and managing finances manually.
With a fleet of 10–15 machines, the operator had traditionally avoided finance altogether. However, this approach limited access to higher priced equipment and introduced challenges when contract wins required rapid machine acquisition.
The Challenge
This equipment acquisition came with multiple complexities:
- Private Sale: The machine was sourced via a a regional dealer and was not publicly advertised — making it harder to verify, value, and secure finance on.
- Higher Houred Equipment: The excavator, a was only a couple of years old but had 8000 hours. Whilst in good condition, its increased hours made it a poor fit for traditional lending criteria.
- Strict Specifications: The operator needed a unit that matched existing pin spacing and hitch dimensions to use their current buckets—saving approximately $50,000 in potential new attachments.
- Manual Business Operations: The business owner doesn’t use email and processes all payments manually at a local bank, making document exchange and standard processes difficult for most lenders.
- Limited Financial Visibility: Due to a long-term strategy of minimizing taxable profit, the business didn’t meet conventional bank lending criteria, despite having a strong asset base.
The Process
Iron Capital stepped in with a responsive, relationship-based approach:
- 12-Month RPO Agreement: A Rent-to-Purchase structure was used to finance the excavator, with the bucket purchased separately by the client to reduce the total finance amount.
- Adaptability in Execution: Iron Capital managed the entire process around the client’s operating constraints—including accepting mobile photos of paperwork and assisting with logistics such as machine transport.
- Support for Private Sale & Older Asset: The team’s familiarity with niche and off-market equipment allowed Iron Capital to confidently fund the private deal, where banks would typically decline.
The full transaction was completed in under four days, including inspection, paperwork, and settlement.
The outcome for the Customer
- Fast acquisition of a 30 ton plus excavator.
- 12-month RPO term, allowing for immediate deployment with low capital outlay.
- Tax savings for the client through rental deductibility.
- Strong equity position at end-of-term, with the buyout price significantly below market value for similar assets.
Key Takeaway
“This was all about understanding the customer’s world—how they operate, what gear they need, and how to make it all happen without delay. We stepped in where others couldn’t and made it easy.”
— Iron Capital BDM
This case highlights Iron Capital’s strength in funding non-standard, relationship-based deals—especially those that sit outside the conventional lending matrix.
For businesses operating in regional areas with lean admin teams and practical, hands-on leadership, traditional finance simply isn’t built to help. Iron Capital delivers flexible, fast, and human solutions—empowering growth when it matters most.