ASSET BASED FINANCE
How ScotPac helped Balanz deliver an $11 million asset backed facility for a mining contractor
Executive Summary
Balanz, one of Australia’s leading debt advisory firms, approached ScotPac on behalf of a mining services contractor that needed more flexible funding to support its recovery. ScotPac worked closely with Balanz from the initial enquiry in March through to settlement in May, structuring an $11 million asset backed solution that combined debtor, equipment and property security into a single facility. ScotPac’s responsive approach and clear timeframes gave Balanz confidence throughout the process and delivered the outcome the client needed.
Business background and challenge
Balanz is one of Australia’s leading debt advisory firms, working with more than 800 relationship groups. The firm was approached by a family-owned mining services contractor that had been with the same major bank for more than 30 years.
The business operates a fleet of heavy equipment valued at over $13 million and delivers contract work across mine sites in Queensland. Following cost overruns on several major contracts, the business recorded a weaker result in FY25. Despite its 30-year track record, the bank responded by proposing to reduce its facility limits.
Balanz approached ScotPac looking for a solution that could provide the flexibility and working capital the business needed to support its recovery.
ScotPac Solution
ScotPac structured a $9.2 million Asset Based Finance facility secured against the company’s debtor ledger, equipment fleet and commercial property, all combined into a single facility for easier management.
An additional $2 million Asset Finance limit was also put in place to support future CAPEX.
In total, the business secured more than $11 million in funding facilities, with the flexibility to draw funds as needed against its asset base. The facility was also covenant-lite, giving the business more flexibility during its recovery.
ScotPac set clear timeframes early for indicative terms, full approval and drawdown. All parties worked to meet those expectations without deal slippage. In this world at the moment, that’s a rarity.
-Peter Stafford
Director Blanz
Opportunity Created
The facility gave the business a release valve from the constant pressure to reduce debt. Previously, every time cash came in from completed work, it was being directed straight towards paying down principal rather than being available to support operations.
With access to more than $11 million in available funding, management could focus on servicing contracts, maintaining the fleet and managing suppliers. Year-to-date performance showed the business was tracking back towards normalised trading levels, and the ScotPac facility provided the certainty and flexibility needed to support that recovery.
Why ScotPac
Balanz approached ScotPac because the business needed a lender that could look beyond one difficult year and understand the working capital cycle of a mining services contractor. The firm had already used ScotPac successfully on two prior transactions and felt confident putting the opportunity forward.
ScotPac quickly grasped the funding need and the timing pressure and worked closely with Balanz from the initial enquiry in March through to settlement in May. Clear timeframes were set early for indicative terms, full approval and drawdown, and all parties worked to meet those expectations without deal slippage.
That level of communication and follow-through gave Balanz confidence in the process and made it easier to manage the client’s expectations.
We’d used ScotPac successfully on two prior transactions, so we knew the people and how they worked. They quickly grasped the funding need and the timing pressure and worked closely with us from initial enquiry through to settlement
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