Industry
Retail
Challenge
A growing retail butcher needed to invest in store fitouts and new staff ahead of a six-month sales ramp-up. But high-cost debt and hefty principal and interest repayments were draining cash flow, leaving no room to fund expansion.
Results
A $500,000 Fifo Capital loan with six months interest-only, then ramping to P&I over 18 months, meant the butcher could refinance two expensive lenders. There was also a $1m Trade Finance facility to support increased supplier payments. The butcher was able to free up cash flow, and receive extra capital for the fitout, all secured via second mortgages at 90% LVR across three residential properties.
Key Product
Business Loan
The Challenge
A growing retail butcher required immediate funding to support store fitouts and staff hiring ahead of an anticipated sales increase in six months. THey also had increasing supplier costs as part of the expansion. However, existing principal and interest repayments on previous business loans, combined with the burden of high-cost lender debts, placed significant strain on cash flow and limited their ability to allocate capital towards expansion initiatives.
The Solution
Seeking a strategic finance partner, the retailer evaluated options to address both immediate capital requirements and long-term financial sustainability. Fifo Capital’s upgraded Business Loan stood out, offering the flexibility of interest-only repayments for the first six months, followed by a gradual transition to principal and interest payments. This structure allowed the business to allocate more capital to fitouts and staffing during the critical setup phase.
“Fifo Capital’s business loan helped us expand into new locations, lending against our existing property equity. The flexible repayment options also allowed us to increase our repayments over time, in line with our scheduled openings and forecasted revenue increase.”
Coupled with a Trade Finance facility from Fifo, providing extended payment terms on supplier invoices, the facility was secured against residential properties to achieve a 90% aggregate LVR, the retailer was able to refinance previous high-cost debts, unlocking liquidity for expansion.
The Results
The flexible loan structure delivered immediate impact. With reduced monthly obligations during the critical setup phase, the retailer successfully completed store fitouts on time and built a skilled team ready for launch, all without the cash flow pressure that had previously held them back.
Consolidating expensive debt freed up working capital that could be redirected toward growth initiatives rather than servicing high-cost repayments. The business now operates with improved cash flow management and a debt structure that scales with revenue, rather than against it.
Most importantly, the retailer gained the financial runway needed to execute their expansion strategy with confidence, transforming from a business constrained by debt into one positioned for sustainable, multi-location growth.
Ready to fund your next business expansion? Apply for a business loan online today.
