---
title: "Broker Scenario: Unlock $200k in Cashflow via a Sale & Hire back"
description: "Our series, Behind the Iron, takes you behind-the-scenes of some of these businesses responsible for servicing the country’s growing infrastructure sector.

In March 2017, Noel Mahon and his brother bought their first excavator – fast-forward seven years and their company, RS Pipe & Civil, has grown to a fleet of 20 excavators and a team of over 50 employees. Beginning in New South Wales before moving to Victoria, the rapid growth of RS Pipe & Civil has been a testament to the quality of work that they are delivering in the utilities and civil works sector. Noel and his team have delivered projects for water boards and on large-scale infrastructure projects across Victoria.

Hear from Noel as he discusses how his business has grown since 2017, the types of civil works projects RS Pipe & Civil specialises in, and the role Iron Capital has played as a partner in procuring the right equipment for RS Pipe & Civil’s projects."
---

[blog ](https://blog.ironcapital.com.au/blog)

# [Broker Scenario: Unlock $200k in Cashflow via a Sale & Hire back](https://blog.ironcapital.com.au/blog/saleandhireback)

 Written by [Marketing at Iron Capital](https://blog.ironcapital.com.au/blog/author/marketing-at-iron-capital) | Feb 17, 2025 10:43:52 AM

We recently helped a broker solve a challenging situation for their client, who was struggling with cashflow pressures due to delayed contractor payments and startup costs. Our sale and hire back solution provided the $200k cash injection they needed to stabilise and grow their business.

#### **The Challenge**

A broker introduced a client facing a significant cashflow challenge due to delayed payments from a large contractor, compounded by startup costs for a new project. The client required a $200k cash injection to stabilise operations and capitalise their cashflow.

#### **The Solution**

Iron Capital Group stepped in with a **sale and hire back** arrangement involving two excavators that had 12 months remaining on their hire purchase contracts. Here’s how the solution was structured:

- **Fair Market Value (FMV)** of the excavators: $470k
- **Payout value** with the bank: $100k

Iron Capital Group purchased the machines for $300k, allocating $100k to clear the existing financier and providing the client with $200k in cash to bolster their cashflow.

#### **The Process**

Over the next 12 months, the customer improved their financial position and was able to refinance the machines back to a bank loan at a purchase option value of $180k.

The broker arranged financing with a bank, leveraging the account history to demonstrate positive cash flow. This facilitated the transition from RPO to bank debt, ensuring sufficient support for servicing the debt.

#### **How it worked for the Broker**

- **Initial Transaction:** Broker earned a 3% + GST commission from the $300k sale and hireback arrangement.
- **Refinance:** The broker secured an additional 3% commission on the $180k refinance transaction.

#### **Key Takeaway**

This case highlights how sale and hire back solutions can provide much needed cashflow relief for clients, while also creating multiple revenue opportunities for brokers through both the initial transaction and subsequent refinancing.

 

[View full post](https://blog.ironcapital.com.au/blog/saleandhireback)

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