Illustrative structure — Secured
A second crew, against the iron already owned
$1,200,000
Construction and trades
This is an illustrative example, not a completed transaction. It is prepared to show how a secured facility is put together. It does not describe any specific borrower and nothing in it is an offer or a commitment to lend.
The situation
A trades contractor is turning down work because it can only field one crew. Standing up a second means vehicles, tooling and payroll carried for several months before the first progress billing is collected.
The business owns its existing equipment outright. That value is real but sitting idle on the balance sheet.
The structure
A secured facility with a lien on the owned equipment schedule, sized against orderly liquidation value rather than book.
Proceeds split between the equipment purchase and a working capital tranche to carry payroll through the billing lag.
Reporting limited to what the structure needs: an updated schedule and confirmation nothing has been sold out from under the lien.
The outcome
The second crew is fielded and billing inside the quarter.
Pledging owned assets produces a materially lower cost than an unsecured facility of the same size would carry.
At a glance
- Product
- Secured
- Security
- First lien on owned equipment schedule
- Use of proceeds
- Equipment and working capital
- Repayment
- Amortising, monthly