GoGetta has helped an engineering firm diversify and boost its revenue by about 30% by funding a $60,000 line-boring machine.
New South Wales-based Macleod Engineering maintains and repairs heavy earthmoving and mining equipment.
In early 2013, following the downturn in the resources sector and with his company competing for a slice of an ever-diminishing pie, owner Carl Macleod decided to diversify into line boring.
It was something Macleod Engineering had previously only dabbled in, and which relatively few companies in Australia offer.
The company started conservatively, buying a small, mobile line-boring machine for $30,000 cash to test the water.
Demand for line boring and welding turned out to be strong among customers looking to economise by machining worn components to their original specs instead of buying new ones.
Still, Macleod Engineering was having to forego bigger, more lucrative jobs because its machine was too small. It needed a larger one.
“Our first line-borer was a light-duty, 240-volt machine—to bid for the bigger jobs, we needed to get our hands on a heavy-duty, three-phase machine,” says Mr Macleod.
He approached a bank for finance but got knocked back. He then applied for funding from GoGetta, who had already bought a service truck for Macleod Engineering.
When he explained to GoGetta how much work his first line-boring machine had generated, it was happy to fund a bigger, more versatile Climax BB5500.
Mr Macleod was pleasantly surprised at the approval, given that GoGetta allows customers to hand back equipment after 12 months if they no longer require it—no questions asked.
He had been unsure whether GoGetta would be willing risk having to remarket a “highly specialised and expensive piece of equipment that not many people would want to buy” if it was returned.
Not that Mr Macleod plans to return the equipment: “The gear we had previously was not meeting our bigger customers’ needs; now we’re up there with the best [line-boring firms].
“The Climax [BB5500] allows us to offer services we could not offer previously; we can now work on larger machinery.
“It’s taken time for the bigger jobs to filter through but now that people have seen the gear we’re using it’s opening doors for us,” says Mr Macleod, whose new clients include a global equipment manufacturer.
He says the weekly revenue generated by the BB5500 – which is used, on average, two days a week – is about 300% more than the weekly rent paid to GoGetta.