How a Local Contractor Saved $25,000 Per Month by Refinancing | Finlease

As businesses grow and strengthen, better financing options often become available. Here’s how one of our brokers helped a successful contractor unlock $25,000 in monthly savings.

The Business

Meet a successful delivery contractor operating across a massive territory – from Newcastle all the way to Narrabri. With contracts spanning hundreds of kilometres, this business relies on a substantial fleet of 100 vehicles, including motorbikes and delivery vans, to service their routes reliably.

Like many growing businesses, they’d initially chosen what seemed like the easiest financing option: an operating lease for their entire fleet. At the time, it felt like the right move – predictable payments, maintenance included, and no ownership headaches.

But as their business matured, the true cost of that convenience became clear.

The Challenge: When “Easy” Becomes Expensive

The operating lease that once seemed convenient had become a financial burden:

Expensive Monthly Payments: The lease payments were significantly higher than traditional equipment finance options.

Restrictive Terms: The operating lease came with tight conditions that limited the business’s flexibility in how they used and maintained their fleet.

Excessive Security Requirements: The lease provider had secured the agreement with a General Security Agreement (GSA) plus additional unencumbered vehicles – far more security than the financing actually required.

No Ownership Benefits: After years of payments, the business owned nothing. No equity, no assets, just ongoing lease obligations.

For a business operating on tight margins in the competitive courier industry, these lease payments were eating into profitability month after month.

The Solution: Strategic Refinancing

Our broker saw an immediate opportunity to restructure the financing and put money back in the business owner’s pocket.

Complete Fleet Refinance: We refinanced all 100 vehicles out of the expensive operating lease.

Traditional Equipment Finance: Secured a conventional equipment loan with better terms and significantly lower monthly repayments.

Security Release: Negotiated the release of all additional security held by the previous lease provider, including the GSA and unencumbered vehicles.

Ownership Transfer: The business now owns their fleet outright, building equity instead of just making lease payments.

The Results: Substantial Monthly Savings

The refinancing delivered immediate and ongoing benefits:

💰 $993,000 Total Refinanced: Complete fleet restructure
🚛 Fleet Ownership Returned: Business now owns their vehicles
💵 $25,000 Monthly Savings: Reduced ongoing finance costs
✅ 20 Additional Vehicles: Fully owned, no longer tied up as security

Annual Impact: $25,000 monthly savings equals $300,000 per year back in the business – money that can fund growth, equipment upgrades, or simply improve cash flow.

Why This Worked

Industry Expertise: Understanding the specific financing needs of courier and logistics businesses.

Lender Relationships: Access to lenders who specialise in fleet finance and understand the delivery contractor model.

Security Optimisation: Negotiating appropriate security levels rather than accepting excessive requirements.

Timing: Refinancing when the business had established a strong operating history and relationship with the delivery company.

The Bigger Picture

This case highlights an important truth: your first financing decision doesn’t have to be your last one. As businesses mature and establish stronger trading histories, better financing options often become available.

Many business owners stick with their original financing because they assume it’s too complicated to change, or they don’t realise how much the market has evolved since their initial borrowing.

Could Your Business Benefit from Refinancing?

If you’re currently in an operating lease or have existing equipment finance, it might be worth reviewing your options. Consider refinancing if:

• Your monthly payments feel high compared to newer market rates
• You’re tied up with excessive security requirements
• Your business has grown and strengthened since your original financing
• You’d prefer to own your equipment rather than lease it
• Your current lender’s terms are restrictive

The refinancing process doesn’t have to be complicated. Our brokers handle the paperwork, negotiate with lenders, and coordinate the transition so you can focus on running your business.

Want to explore whether refinancing could save your business money? Get in touch with our equipment finance specialists for a no-obligation review of your current arrangements.