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Escalating repair costs

Self-employed and on the road most of his days, Nick needs his car to survive. So when his car rego came up for renewal he was keen to get it sorted straight away.

The letter from the Roads and Maritime Services stated that because his car is now more than five years old, it must be checked for roadworthiness by an authorised mechanic in order to be registered for another year. This came as a bit of a surprise to Nick, as did the news his indicators were faulty. It would cost several hundred dollars to get them replaced in order to pass the inspection and get the pink slip.

Any small business owner will know that cash flow is king. At the time the repairs needed doing, Nick wasn’t in a good position, as he had several invoices out with clients. A friend had told him about a short-term loan he’d taken out through City Finance, so he went along to his local branch and spoke with Kate, the manager.

Kate sympathised with his position and suggested a couple of ways he could borrow the money, depending on how long he anticipated needing to pay it back. Nick was confident his clients would pay on time so he took out a cash advance loan to get the repairs done, and paid back the loan in full, ahead of the agreed repayment schedule, when his clients settled his invoices.