Manufacturer Doubles Capacity and Scales Operations with a $2.5M Loan | Fifo Capital

Industry

Manufacturing

Challenge

A growing Australian manufacturer was rejected by traditional lenders for a $1M equipment loan despite strong property equity, stalling their ability to fulfill a major new production contract.

Results

Fifo Capital provided a flexible $2.5M property-backed facility that allowed the business to double production capacity and achieve a 35% revenue increase within 18 months.

Key Financial Product

Trade Finance, Business Loan

Production Capacity

35%

Annual Revenue growth

$3.8M

Capital Ceiling unlocked

Where the big banks saw complexity, Fifo Capital saw opportunity. Their $2.5M facility didn't just fund new machinery; it gave us the breathing room to double our production capacity and secure a multi-year contract that has already boosted our revenue by 35%.

Manufacturing Company

Managing Director @ Manufacturer

The Challenge

An established manufacturing SME in Australia's manufacturing sector encountered a significant growth hurdle when awarded a multi-year supply contract from a major client. To fulfill the contract and maintain competitive momentum, the business needed to purchase advanced machinery from overseas and expand its production footprint, requiring $1M in immediate capital. Despite having substantial property equity and a clear, data-backed growth strategy, traditional banks declined the application, citing the complexity of the deal structure, an unwillingness to fund overseas purchases, and a lack of sufficient historical cash flow. This left the business at risk of losing a transformative contract and stalling its long-term expansion plans.

The Solution

Recognising the urgency and underlying strength of the business, the company engaged Fifo Capital. Fifo Capital's Upgraded Business Loan offered a tailored solution, leveraging up to 90% of the company's property equity to unlock a $2.5M facility. The loan was structured with a 12-month interest-only repayment period, ensuring the business could install new machinery and ramp up operations without straining day-to-day cash flow, leveraging Trade Finance on top of the original Business Loan. The facility's upper $5M limit gave the business the confidence to pursue additional expansion, including launching a new product line. Importantly, the absence of early exit penalties allowed for maximum financial flexibility.

"Fifo Capital delivered the speed and flexibility the banks couldn't and put our expansion plans into action when it mattered most."

The Results

With Fifo Capital's support, this manufacturing company rapidly installed new equipment and doubled its production capacity within 18 months. The business secured the critical supply contract and, buoyed by the facility's flexibility, added a new product line to its offering. The interest-only period preserved cash flow during the crucial ramp-up, and when revenue accelerated, the company took advantage of no early repayment fees to repay the facility ahead of schedule, reducing interest expenses and financial exposure. The result: a 2x increase in production capacity, a secured multi-year contract, and annual revenue growth of 35%, all achieved with the speed, flexibility, and tailored expertise Fifo Capital is known for.

Ready to fund your next business expansion? Apply for a business loan online today.