Reducing interest costs by 31% for a logistics company
The company had 5 different loans in 3 banks. We moved everything to one institution on new terms, saving 4,218 PLN monthly on interest alone.
The company Trans-Beskid Logistics from Nowy Sącz serves international routes, but their finances were stuck at a standstill due to 5 different loans in 3 different banks. We helped them gather this into one, cheaper installment.
The challenge
In June 2024, the company's total debt was 1,487,320 PLN. The average interest rate for all products was 11.7%, and each installment had a different payment date. The owner lost about 5.5 hours a month on the administration of these payments alone. The biggest problem, however, were the hidden commissions in two leasing agreements, which meant the actual cost of money was significantly higher than on paper. The company needed cash for new tires and service before the season, but banks refused further funds due to low credit capacity under the current burden.
Our approach
We analyzed each of the 5 contracts for early repayment penalties. Our advisor, Robert Gąsienica, discovered that one of the banks was incorrectly calculating the WIBOR margin 0.4 percentage points too high. We prepared a plan to exit the most expensive loans and invited 4 commercial banks we work with regularly to talks. Facts matter, not promises, so we showed the banks hard data on the profitability of the client's fleet of 23 trucks, which allowed us to negotiate terms unavailable 'off the street'.
The solution
We launched one large consolidation loan secured on the client's commercial real estate. Thanks to this, the interest rate fell to 7.8%. We closed all 5 obligations in one business day. Additionally, as part of the same decision, the company received a working capital limit of 118,400 PLN for ongoing repairs and fuel. The entire process took place remotely, and we signed the final papers at our office on Krupówki during one short visit from the owner.
Results
Thanks to consolidation, the company regained financial liquidity and stopped overpaying for capital that should have been cheaper long ago.
Timeline
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July 4, 2024Audit of 5 loan agreements and verification of commission clauses
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July 12, 2024Negotiation of terms with a new bank and obtaining a promise
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July 19, 2024Repayment of old obligations and activation of new financing
"I thought with five different loans, no one could help us anymore. The Carpathian Institute of Finance straightened out our affairs in two weeks and left real money for fleet development in our pockets."