Grounded Construction Group
Grounded Construction Group designs and installs accommodation camps and site facilities on remote mining sites across Western Australia, predominantly in the Pilbara region for some of the major players in the mining and resources sector.
Need
To free up cash flow and support upcoming projects, Grounded Construction Group needed finance.
Solution
Our guarantee provided Grounded Construction Group with the support it needed to deliver its contracts and continue to grow.
With our financial support, Grounded Construction Group could focus its attention on business growth while minimising cash flow issues.
Grounded Construction Group is a specialist business that installs accommodation camps and site facilities on remote mining sites across Western Australia. With a background in construction, Founder and Managing Director Paul Natoli recognised an opportunity in the market in 2013, and the business has been thriving ever since.
“Each time we get a new project, we reach out to Export Finance Australia and they do the bank guarantees for us. We currently have two projects that they hold the bank guarantees for.”
Paul Natoli
Founder and Managing Director, Grounded Construction Group
“The service we offer is quite unique,” said Paul. “There are a lot of other companies that do similar builds and installs and then deconstruct the facilities, but we only do the install. There aren’t too many like us around. We're small and agile.”
Grounded Construction Group predominantly works in the Pilbara region for some of the major players in the mining and resources sector. The buildings Grounded Group designs and installs are sourced via Australian manufacturers from local and imported materials.
Since the business’s inception, Paul has been using cash-secured bank guarantees for nearly all of Grounded Construction Group’s projects. “We had so much money tied up at one point in bank guarantees that it was quite hard to manage cash flow,” Paul explained. “We've grown a lot over the past few years, and we have since been able to secure a finance solution with Export Finance Australia.”
Funding the cash flow gap
In mid-2021, Paul and his team approached us for a finance solution to support some new projects it had in the pipeline. “Having bank guarantees with Export Finance Australia has allowed us to do a lot more within the business,” Paul said. “It’s freed up a lot more cash flow.”
Paul highlighted that while the application process was thorough, now that it’s all in place, it’s quick and easy. “We've got a $2 million limit that we just draw down on every time we need a new bank guarantee,” he shared.
“It gives us the opportunity to grow more as a business without having all our money tied up. We’ve grown a lot over the past three years and that's the path we want to continue on.”
