Working Capital
Facility Options.
Two final solutions after fourteen days of market engagement — with a clear path to better funding ahead.
Three pathways to fund the work already on your book.
- Option 1 — BizCap term loan, 2nd mortgage
- Option 2 — Private first mortgage facility
- Option 3 — Both, running side by side
- The pathway — Where this leads next
This isn't about the cheapest money.
It's about the cost of opportunity.
MiningCommSteel has a confirmed order book and live commercial demand. The question on the table isn't whether the cost of funds is low. It's whether the cost of not having funds — missed projects, stalled deliveries, lost relationships — is higher.
We turned over every stone.
Twenty-five plus lenders engaged across major banks, non-banks and specialist commercial funders. Twenty-three declined. Two approved. Here's where it landed.
- Major banks — Big-four servicing reviews
- Specialist trade finance — Insurance-backed invoice and trade facilities
- Non-bank commercial — Cash flow and working capital lenders
- Private mortgage funders — Property-secured short and medium-term facilities
- Bridging and second-mortgage — Specialist short-term funders
Every decline came back with one or more of these reasons. They're credit-policy and insurance-policy mechanics — not opinions about the business. None of them are permanent.
Two facilities. One combined option.
Three pathways forward.
BizCap Term Loan
Working capital, secured by 2nd mortgage behind Titan. Factor rate never written by BizCap for another client — with Pilbara's commission cut to the floor.
Private 1st Mortgage
Refinance Titan into a 30-year structured mortgage with cash out. Variable rate, refinanceable anytime.
Both, In Parallel
Maximum firepower: Private as 1st, BizCap subordinated to 2nd. Subject to inter-lender negotiation.
Pricing at the floor.
Working capital, fast.
Clinton met directly with the BizCap co-founders to negotiate this offer. This factor rate has never been written by BizCap for another client — not before, not since. To get there we also reduced Pilbara's own commission to the floor, so every dollar of that reduction flowed through to the cost of funds for MCS. Secured by 2nd mortgage over 41 Barbados Turn behind the existing Titan first.
| Item | Basis | Amount |
|---|---|---|
| BizCap lender fees | ||
| Establishment fee | 4% of approved facility | $30,000.00 |
| Admin fee | Fixed at settlement | $7,749.00 |
| Broker fees (Pilbara Finance) | ||
| Credit mandate fee | $10,000 + GST | $11,000.00 |
| Cost of funds (over the term) | ||
| Interest cost | Factor 1.25 — floor pricing, Pilbara commission cut to floor | $187,500.00 |
| Total cost across the full 40-week term | $236,249.00 | |
Repayment cadence
Early payback discounts
Pay the facility down faster — through early debtor receipts or a refinance into institutional funding — and the total payback drops at four staged checkpoints. The earlier you retire, the more you save.
Early payback amounts above are the total payback figures stated by BizCap. Any weekly payments already made up to the early payback date are deducted from the stated payback to determine the residual balance owing on settlement. Early payback discounts decline linearly to zero by approximately week 20 of the 40-week term. Pilbara credit mandate fee is paid at original settlement and is not refundable on early payback.
Refinance, restructure,
release.
A 30-year facility against 41 Barbados Turn that pays out the existing Titan first mortgage, releases capital to the business, and restructures the property debt onto a traditional 3-year I/O / 27-year P&I architecture — with the ability to refinance out anytime on 30 days' notice. Refinancing also drops the all-in rate from 8.71% pa (Titan) to 8.60% pa (Private), making this the rare scenario where releasing capital actually reduces the rate on the existing debt.
| Item | Basis | Amount |
|---|---|---|
| Settlement fees (one-off, deducted from facility) | ||
| Establishment fee | 0.95% of facility | $23,560.00 |
| Brokerage | 1.25% of facility | $31,000.00 |
| Risk fee | 0.50% of facility | $12,400.00 |
| 1st month part interest | Pro-rata at settlement | $8,044.71 |
| Application fee | Fixed | $7,440.00 |
| Legal fees (PEXA & disbursements) | Estimate | $3,300.00 |
| CLF (capital line fee) | Fixed at settlement | $2,480.00 |
| Valuation fees | Estimate | $2,200.00 |
| Less: Cost payment add-back | Lender credit | ($7,740.00) |
| Total deducted from facility at settlement | $82,684.71 | |
| Ongoing interest cost (per year, during I/O) | ||
| Interest @ 7.40% pa | $2,480,000 × 7.40% | $183,520.00 |
| CLF @ 0.10% pm | $2,480,000 × 0.10% × 12 | $29,760.00 |
| Annual cost (interest + CLF) during I/O period | $213,280.00 | |
The Titan reality.
A balloon facility maturing in 19 months.
Before comparing costs, here's exactly what's currently in place. Two separate Titan facilities settled on 8 December 2025, with a hard principal repayment date of 7 December 2027 — meaning a refinance is required regardless of whether MCS proceeds with Option 2 today.
| Account | Facility | Lower Rate | Higher Rate | Monthly |
|---|---|---|---|---|
| 251100152 Primary facility |
$1,960,000 | 7.35% pa | 14.40% pa | $14,232.82 |
| 251100301 Secondary facility |
$140,000 | 7.35% pa | 14.40% pa | $1,016.63 |
| Combined Titan exposure | $2,100,000 | 7.35% pa | 14.40% pa | $15,249.45 |
The current Titan facilities carry three guarantors: Stanley Kevin Wilton, Paul Roy Tottman, and SKW Contracting Pty Ltd. Refinancing into the new private structure is the natural moment to restructure that guarantor stack.
- Stanley Kevin Wilton
- Paul Roy Tottman
- SKW Contracting Pty Ltd
- Stanley Kevin Wilton (sole guarantor)
- Paul Tottman removed
- SKW Contracting Pty Ltd removed
What does the $297,315 cash out
actually cost over 12 months?
Based on the actual Titan settlement figures — not estimates. The two existing Titan facilities ($1.96M + $140K, both at 7.35% pa Lower Rate inclusive of Line Fee) cost MiningCommSteel $15,249.45 per month combined. That works out to an effective all-in rate of 8.71% pa. The new Private 1st at 8.60% all-in is actually cheaper than what's in place today.
| Item | Current (Titan, 2 facilities) | New (Private 1st) | Difference |
|---|---|---|---|
| Loan amount | $2,100,000 $1.96M + $140K |
$2,480,000 | +$380,000 |
| Lower Rate (prompt-pay) | 7.35% pa | 7.40% pa | +0.05% |
| Line Fee / CLF | ~1.36% pa included in monthly |
+ 1.20% pa 0.10% pm |
−0.16% |
| All-in effective rate | 8.71% pa | 8.60% pa | −0.11% |
| Monthly cost | $15,249.45 $14,232.82 + $1,016.63 |
$17,773.33 | +$2,523.88 |
| Annual cost | $182,993.40 | $213,279.96 | +$30,286.56 |
| Higher Rate (default) | 14.40% pa | No equivalent | Risk removed |
| Maturity / balloon | 7 Dec 2027 ~19 months away |
30-year term | Long-term certainty |
| Headline cost — interest on cash out only | ||
| Interest cost on $297,315 (12 months @ 8.60% pa) | Pure cost of cash out portion | $25,569.09 |
| Marginal cost vs current Titan position (Year 1) | ||
| Rate saving on existing $2.1M (8.71% → 8.60%) | $2,100,000 × 0.11% pa | ($2,393.40) |
| Interest on the new $380K (cash out + financed fees) | $380,000 × 8.60% pa | $32,680.00 |
| Annual cost differential vs status quo (Year 2+) | Net of saving on existing debt | $30,286.56 |
| Settlement fees (one-off, Year 1 only) | Total deducted from facility | $82,685.00 |
| Total Year 1 cost vs. doing nothing | $112,971.56 | |
Titan all-in cost of 8.71% pa is calculated from the actual settlement letters dated 8 December 2025 (loan accounts 251100152 and 251100301), reflecting the Lower Rate of 7.35% pa plus Line Fee. The Lender's Higher Rate of 14.40% pa applies on any late or missed payment. Calculations assume the new private facility is held for the full 12-month period at the indicated all-in rate. Variable rate movements during the period would adjust these figures. Settlement fees are paid out of facility proceeds at draw-down and are reflected in the net funds available figure of $2,397,315.
Repayment cadence
- Traditional 30-year mortgage architecture. 3 years interest-only locked in, then 27 years P&I — the same structure as a standard residential mortgage. Provides long-term stability and runway to refinance into mainstream commercial funding when the position permits.
- Variable rate. Subject to standard rate movement — can move up or down with market conditions.
- Refinance anytime. 30 days' written notice plus one month's interest as the cost to exit. No long lock-in penalties — designed to be refinanced out of when better funding becomes available.
- Pays out Titan in full. No second-lender complications, no negotiation between mortgagees on the property security.
- Up to 80% LVR. Confirmed against comprehensive valuation. The $2.48M facility assumes a $3.1M valuation outcome.
*Facility limit is based on a target valuation of $3.1M to be confirmed via comprehensive valuation. Final facility size, rate and fees are indicative and subject to formal credit approval, satisfactory valuation and standard documentation.
Both. In parallel.
Maximum firepower.
If both Option 1 and Option 2 are required to fund the order book, the facilities can be structured to run alongside each other — subject to formal negotiation between the private lender and BizCap on the security position.
| Item | Option 1 (BizCap) | Option 2 (Private) | Combined |
|---|---|---|---|
| Facility size | $750,000 | $2,480,000 | $3,230,000 |
| Settlement fees | $48,749 | $82,685 | $131,434 |
| Cash to business | $701,251 | $297,315 | $998,566 |
| Repayment cadence | $23,447.50/wk × 40 | $17,773.33/mo | Both, in parallel |
| Total payback / annual cost | $937,500 over 40 wks | $213,280/yr | See breakdown |
Combined monthly obligations
Three options.
All the numbers, in one place.
Option 1 settlement fees include $30,000 establishment + $7,749 admin (BizCap) + $11,000 Pilbara credit mandate fee. Option 2 settlement fees are net of the lender's $7,740 cost payment add-back. Option 3 totals are the sum of Options 1 and 2. All figures indicative and subject to formal credit approval and execution of standard documentation.
This isn't the destination.
It's the bridge to better funding.
The two options on the table are the right tools for the next 3–6 months — not the long-term answer. Once the immediate position is stabilised and the blockers are cleared, materially cheaper institutional funding becomes commercially supportable.
Solve the immediate working capital need. Keep delivering against the order book. Maintain client relationships. Buy time to clean up the position.
Pay down the ATO plan in full. Retire the BizCap facility. Bring 90+ day creditors current. Continue trading profitably with a clean financial position.
Specialist trade finance facility ($600K+) with insurance endorsement, commercial bank refinance options, and larger working capital lines scaled to turnover.
- Active ATO payment plan blocking insurance endorsement
- Existing BizCap exposure constrains additional unsecured limits
- Director gearing on residential security
- Over-90-day creditor balances on the AP ledger
- Institutional trade finance ($600K+) with insurance backing
- Commercial bank refinance of property at sub-7% rates
- Invoice/debtor finance scaled to turnover ($1M+)
- Working capital lines from major banks & tier-2 commercial
Ready when you are.
Both indicative offers are valid until 10 May 2026. Once a direction is chosen, settlement timelines are short — days not weeks. Below is the contact line for any question across either facility.
- Choose the option. Option 1, 2 or 3 — or request a workshop call to talk through any of them in more detail.
- Confirm before 10 May 2026. Indicative pricing on both facilities is held until this date.
- Documentation. On confirmation we move straight to formal credit approval, valuation (Option 2 / 3) and settlement.
- Pathway plan. In parallel we begin mapping the institutional refinance once the bridge is in place.
Clinton Burnes
All pricing, fees, terms and indicative figures contained in this proposal are subject to formal credit approval, satisfactory valuation (Option 2 and Option 3), execution of standard documentation, and inter-creditor arrangements where applicable (Option 3). This document does not constitute a guarantee of approval or a loan offer. Pilbara Finance is a Credit Representative (Credit Representative Number 478535) of Mortgage Specialists Pty Ltd (Australian Credit Licence Number 387025). Prepared 28 April 2026.