We're talking heavy metal - not the music, but the substance. And while, like many industries, scrap metal took a hit during COVID, there's still plenty of potential for growth, especially with the right kind of financial support.
Ever wondered where all that scrap metal goes when no-one needs it anymore? It’s businesses such as S & M Metals that take care of it safely – buying copper, brass, aluminium and a whole lot more, then recycling it.
The recycling process requires a lot of machinery, though, including trucks to collect the waste, skip bins and, of course, the machines needed to actually sort and recycle all that metal.
It can be an expensive business, but with the right finance available, companies can grow and expand – even through global pandemic.
The business of metal
Robert Rachella took over Queensland-based S & M Metals about six years ago, however the business itself is well into its third decade.
The company purchases scrap metal and gold, including copper wire, copper pipe, burnt and domestic copper, low-grade PVC and even aluminium/copper radiators, recycles it then sells it on.
It’s a full-service business, delivering skip bins for the customer to fill and then picking them up.
The first quarter of 2020 was difficult for the business. With a lot of walk-in customers unable to go to work, the flow-on effect was felt through the industry.
In order to keep going, Robert needed to purchase more inventory.
“We have some very large machinery that needs material to basically keep everything going. So we’re always buying bulk containers of material,” he explains.
To do this, of course, he needed capital.
He initially approached lenders he already had finance with, however none of them were willing to extend his agreements.
So Robert paid the loans out and gave Bizcap a call.
Tim, his Bizcap Customer Loan Specialist, was able to help to the tune – so far – of $20,000.
What Robert appreciated most, though, was the holistic approach taken to get financing.
“It’s really no nonsense. We go forward and it is what it is. With Bizcap there’s no red tape – we just get straight to the point and continue doing business.”
Moving forward, S & M Metal is also looking to purchase their building, which is currently leased, and buy some new machinery. And while Robert acknowledges these may not be necessities at the moment, they will certainly open many more doors – in particular, the exporting market.
Indeed, more machinery, especially if they do different jobs to existing machines and are more up-to-date models, allows for more efficient work and more opportunities for any business.
“A lot of the larger suppliers that were out in yards that are in Victoria and Melbourne – those are the bigger yards –they basically had to shut down,” Robert explains. “So it made it very difficult. But we managed to survive because we have so many trucks that are on the roads.”
Accessing capital through Bizcap was one of the key differentiators between S & M Metals operating throughout COVID or joining its fellow suppliers in closing its doors for some time.
And, for a small business, the long-term benefits of continuing to trade and grow are invaluable.
If you’re looking for assistance to help grow and expand your business, taking it to the next level, please get in touch with us. We’re always happy to help.
If you’re in need of some metal removal, contact Robert – he’s sure to arrange everything for you.