Based in NSW, our client has operated his own timber milling service for five years. Newly signed contracts had triggered a period of expansion, and the client needed to purchase additional equipment in order to meet demand.
As a sole trader, this client is a relatively small operator, which limited his options for asset finance. It created a catch-22 situation… the business couldn’t grow without a loan but the loan was hard to secure because the business wasn’t big enough.
Many sole traders find themselves trapped like this and confused about how they can take their operations to the next level.
The client’s broker reached out to thornmoney BDM Jerome Boadu for help to finance the purchase of a $44k Ultra Portable Sawmill. They came to us because they knew we were one of the best options to rapidly approve finance and offer a cost-effective rate.
Cashflow is imperative for sole traders and it is often impossible to acquire expensive assets without borrowing the funds required.
The client had longevity as a business owner on his side and had signed contracts with his new customers. Because of these factors, his sole trader status did not hinder his application for asset finance through thornmoney.
manageable repayments and an easy finance solution
As well as providing options for independent operators, thornmoney is able to offer flexibility around repayment terms. An asset like the one purchased by this client will usually have the option to pay over a period of up to 60 months (5 years).
With the new equipment in place, the client now has the flexibility to expand and potentially evolve from being a microbusiness to operating at the company level. As his business grows, our sawmill operator client will be able to liaise with us via his broker, to discuss further finance options.
Want to know more about asset finance for sole traders and micro businesses? Speak to thornmoney today.
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