Meluca Group finds support from alternative funding after debtor challenges

Meluca Group is an earthmoving, quarrying, and waste management business located at Drouin, West Gippsland. The business has been in operation for over 15 years, servicing the Melbourne and wider Victoria areas. They provide a range of construction and recycling solutions and have a reputation for delivering quality works in an environmentally sustainable manner.

The challenge faced by Meluca Group

Despite years of successful operation, Meluca Group faced some challenges in the disruptive Covid market, leaving them with a temporary cashflow?shortfall after a major client was unable to pay. This also had a ripple effect on the company’s credit rating. Despite working hard to find a resolution, traditional finance providers declined Meluca Group’s applications for funding.

Additionally, they had attempted to purchase a skip bin and hook lift business on several occasions since 2018. This business provides bins ranging from 3m3 to 25m3, which are dropped at homes or worksites to be filled with waste. They are a popular option for deceased estates, shed and backyard clean ups, and renovations.

Meluca Group were able to secure financing for the trucks and the business purchase but not the bins themselves.

The Rebus Capital solution

A mutual work acquaintance introduced Meluca Group Director Luke Shone to Krissy Huxley from Rebus Capital. There was a lot of groundwork to be covered because of Meluca Group’s credit challenges. However, within a month Krissy had the wheels in motion and momentum built from there.

Leveraging her non-bank lending network, Krissy was able to successfully raise capital for Meluca Group. This helped them through their revenue shortfall period, and they are now operating in the black again.

And, despite the difficulties associated with buying additional bins, Krissy was able to secure financing for 80 bins initially. Not long after she topped this up with an additional 20, now funding for another 40 is underway.

Since the initial engagement with Krissy and Rebus Capital, Meluca Group has now secured funding for at least 10 more deals and have also purchased the bin business, which is a good fit with their core waste activities.

Krissy has continued to work closely with the Meluca Group staff and accountant, giving them scope to grow the company. They have now built strong personal relationships with lenders and industry participants off the back of Krissy’s advice and support.

“Krissy went out of her way to make sure we were in a better position. She is good for advice and not just about the next deal. We have now financed many more machines and are looking at property and debtor finance too. She managed to convince lenders to look past the credit issue and envision our dream.” – Luke Shone

?Why Meluca Group chose Rebus Capital

?Meluca Group required access to new sources of capital to maintain and grow their operations. Luke quotes Krissy’s thriving on a challenge and ‘don’t take no for an answer’ attitude as exactly what his company needed. In particular, Meluca Group is benefitting from the capital advisory Krissy has provided. She understands the company and is a straight talker they can come to for independent and honest advice.

“We are now in a better financial position now than we’ve ever been, which gives us scope to grow. Nothing is out of the question with Krissy. She makes things happen that no-one else seems able to do. We wouldn’t be at the point we’re at without her. After just one month, the bin business is looking good; Krissy not only secured the finance for it, but she also got it at a really good rate.” – Luke Shone

Contact Rebus Capital for your capital solutions

Like Meluca Group, do you need flexible finance to help you out of a tight spot? If you’re looking for corporate or specialist finance support, talk to Rebus Capital today.

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