Fuelling growth for an established Civil Contractor

A well-established Victorian-based civil construction business, specializing in excavation, piling, and retention work, was looking to transition from wet and dry hire on local projects to owning a fleet of heavy machinery. 
To scale effectively, they needed to acquire large excavators—but faced credit constraints and a need to preserve cash flow to support broader business growth.
The company was referred to Iron Capital by an existing client—a common path for new relationships thanks to Iron Capital’s strong reputation in the civil sector

The Challenge

The client aimed to acquire two large excavators to support their growing pipeline of infrastructure projects. However, several hurdles needed to be addressed:
●    Limited access to finance – Despite securing a lucrative 12-month project, traditional lenders were unable to fund the full equipment cost.
●    Desire for ownership – The business sought to move away from dry and wet hire to full ownership of machinery, with a view to lowering long-term costs and increasing control over project delivery.

The Solution

Iron Capital structured a tailored Rent-to-Own (RPO) solution:

• Strategic RPO Structure: Once the client secured key project contracts, Iron Capital financed two new large excavators through 24-month RPO agreements—striking a balance between affordability and asset utilisation.
• Long-term equity building: The RPOs were structured to enable the client to build significant equity in the equipment, with end-of-term buyouts representing a strong return on investment.

The outcome for the Customer

• Two large new excavators funded, valued at approximately $1 million combined.
• Rapid mobilization - equipment put to work on a major 12-month+ infrastructure project within days of delivery.
  
• Strengthened asset base, giving the client long-term control over job costs and reduced reliance on dry/wet hire.
  
• Improved cash flow and project planning, as the RPO structure allowed for predictable fixed costs.
  
• Ongoing partnership - Iron Capital continues to support the client’s growth, with new funding requests and referrals flowing through.
  

Key Takeaway

"From day one, we understood the client’s long-term vision. We started by funding the lower-value assets to get them moving, then scaled up to the heavier gear as their needs grew. It was about being a partner when others hesitated—and proving we were in it for the long haul."
— Iron Capital BDM

Iron Capital’s team found this partnership especially rewarding due to the long-term thinking and trust involved. By understanding the nuances of the client’s credit situation and growth ambitions, Iron Capital not only delivered funding—it powered capability.