28 March 2014, Written by James Perkins

ROYSTON Kent and his business partner Bob Halsall have borrowed about $750,000 to spend on infrastructure for the plastics manufacturing B&C Plastics as they have grown the business over the past eight years.

Kent and Halsall were working for an opposition company when they decided to pool their combined 43 years’ experience in the industry to strike it out on their own.

Through the investment in new machinery, the undermanaged business they bought has grown its client base from a handful to over 100.

“As the business grew, we outgrew the equipment and needed capital for the additional and larger machines we needed and when we looked for funding it was bank assistance which allowed us to purchase that equipment,” says Kent.

The temptation to pay off minimum amounts to maintain cash flow can be significant, but can lead to an overhanging debt which needs to be refinanced at the end of the term.

“As a rule we tend to look to pay them out at a zero balance at the end of the term,” says Kent.

“When we started we kept the repayments to a minimum and if there were any residual amounts, we would resell the debt at the end of the term.

“We thought it was the best way at the time to manage our cash flow while the business grew, as by paying smaller amounts up front we still had cash available.”

But Kent has changed his tune since then.

“In my experience, when you do pick up a lease for your equipment, it is preferable to have a zero balance at the end of the period. We didn’t do that and paid the minimum, but years down the track it is our long term strategy. Equip yourself so there is no residual to pay.”

The future plans for the business is to develop its own product range in the adventure retail category, focusing on four wheel drive and camping equipment.

“It is something we are passionate about and an industry we love. It is great to get out to Fraser Island or Moreton Bay and get out bush; we would like to connect that to our business passion,” says Kent.

B&C has started expanding into outdoor adventure equipment with the Rodezi, a product designed for fishing enthusiasts.

An ANZ Small Business Specialist can assist you with every aspect of your business finances, including managing your cash flow, applying for a business loan, consolidating your banking and streamlining your accounts. If you would like to find out how you can grow your business through finance please go to to find out more.

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Any advice does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you.

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