Equity Tap
Home / Case studies / A mining supplier lands a Port Hedland contract and gets the equipment funded up front
Case study: mining services, Western Australia

A mining supplier lands a Port Hedland contract and gets the equipment funded up front.

The contract was won. The water purification systems and compressors had to be bought first. A sale and leaseback about two months later repaid the loan.

Let's Get Started Call 1300 123 024
$50k–$5mBusiness facilities
1–12 monthsShort-term options
As little as 24hFor eligible scenarios
Australia-wideProperty security
mining contract funding case study

The situation

A company that supplies the mining industry landed a large contract to provide water purification systems and compressors to a mine at Port Hedland in Western Australia's Pilbara. Winning the contract was the easy part. Delivering it meant getting hold of the actual equipment urgently, and the suppliers wanted paying up front.

Mining contracts are unforgiving about timing. Late delivery puts the relationship and future work at risk, and the business needed capital in hand before it could earn a dollar from the contract.

Why the usual options did not fit

  • Waiting for contract payments: the mine would pay once equipment was supplied, not before.
  • A bank facility: too slow for the delivery timetable.
  • Arranging long-term equipment finance first: the plan was a sale and leaseback, but that needed the equipment to exist and be owned before it could be put in place.

What Equity Tap did

We provided short-term capital secured by property so the company could buy the equipment straight away. The exit was clear from the first conversation: once the equipment was purchased, the business would arrange a sale and leaseback on it, releasing the capital back to the company.

The outcome

  1. The water purification systems and compressors were bought and the contract went ahead.
  2. About two months later the business completed the sale and leaseback arrangement.
  3. The proceeds repaid the Equity Tap loan.

Two months of funding to unlock a large contract, then out. That is exactly what a short-term business loan is for. There was no reason to take on a long loan for a two-month need.

Supplying mining, resources or big contracts?

See funding the upfront costs of a large contract and private business lending in Perth and WA. Then tell us about the contract or call 1300 123 024.

Frequently asked questions

Can I get funding to buy equipment for a contract I have just won?
Yes. Equity Tap lends short term against property so you can buy equipment or materials up front and repay from the contract, a refinance or a sale and leaseback.
How does a sale and leaseback repay a short-term loan?
Once the equipment is bought and owned, it can be sold to a financier and leased back. The sale proceeds repay the short-term loan and the business keeps using the equipment.
How long was this loan needed for?
About two months, until the sale and leaseback was completed.
Do you lend to businesses in remote areas like the Pilbara?
Yes. The loan is secured by acceptable residential or commercial property anywhere in Australia, and the business can operate anywhere.
Do you lend to mining services companies?
Yes. Suppliers and contractors to the mining industry use short-term loans for equipment, mobilisation, wages and the gap until contract payments arrive.

Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.

Clear answer. Fast.

Tell us what needs to happen, and when.

A lending specialist will assess the property, the business purpose and your exit strategy.

Let's Get Started