Unlocking cash flow to support a $11M opportunity for a civil and mining company

A well-established civil and mining business based in regional Queensland recently secured a $11 million, 15 month regional council contract requiring significant equipment deployment. With over two decades in operation, the business has experience across mining, quarrying, and civil construction and owns a broad fleet of machinery used across remote and regional infrastructure projects.
Iron Capital had developed a new relationship with the business and after discussing and understanding the client’s requirements, Iron Capital offered the Rapid Response Sale Lease Back solution to support the clients urgent capital requirement to support mobilization for the new project.

The Challenge

Despite winning a major contract, the client faced significant short-term cash flow issues. Years of working with mining companies on verbal agreements had caused operational disruptions: frequent project stand-downs and remobilizations depleted cash reserves. The client urgently needed working capital to begin fulfilling the newly awarded job.

Key challenges included:

• Time sensitivity: The contract required immediate mobilization.
  
• Traditional funding not suitable: Banks were too slow, and the client needed liquidity within days.
  
• Complex asset mix: The fleet consisted of various machinery types, including crushing gear, trailers, excavators, graders, and trucks.
• Undocumented contracts: Previous verbal agreements made financial institutions hesitant to lend.

The Solution

Iron Capital stepped in with a rapid-response Sale & Lease Back solution.
1.    On-site Assessment: Within days, Iron Capital flew an asset manager to inspect and validate equipment on-site.
2.    Fleet Monetization: 8 machinery assets were assessed and valued for sale.
3.    Capital Injection: $1.2 million was paid directly to the client within one week.
4.    12-Month RPO: Each machine was rented back to the client under a 12-month Rent-to-Own (RPO) agreement, preserving operational continuity.
In addition, Iron Capital identified several other assets that could be leveraged in future should more capital be required. A conditional offer to extend funding within 60 days was provided to maintain flexibility.

The outcome for the Customer

• $1.2 million in cash delivered in less than 7 days.
• 8 machinery assets kept on-site and operational with no interruption.
• Council contract execution commenced on time, with secure payment terms expected to normalize the client's cash flow.
• Relationship strengthened, with the client now considering further transactions and referring new prospects.
  

Key Takeaway

"The client had a solid business, but a mix of delayed projects and a new growth opportunity meant cash flow was going to be tight. Once they crunched the numbers, our solution stood out—it gave them the speed and agility they needed to move forward without compromising their margins."
— Iron Capital BDM

This case underscores Iron Capital’s ability to act fast, deliver complex asset-backed funding, and provide relationship-based solutions in regional and remote areas.

For operators in the mining, quarrying, and civil space, especially those navigating lumpy cash flows or tight project starts, Iron Capital offers a powerful alternative to traditional finance.