How Asset Finance Helped a Kent Utilities Contractor Invest in Its Own Equipment and Reduce Long-Term Costs
Overview
Our client is an established SME operating within the construction and utilities sector based in Kent.
The Challenge
Like many growing contractors, this Kent-based utilities business relied on hiring excavators to complete projects. While hiring provided flexibility, the ongoing costs were becoming increasingly difficult to justify as the business continued to grow.
With machines in regular use, purchasing its own fleet offered a far more cost-effective long-term solution. The business needed funding quickly to secure the equipment and continue meeting project demands without interruption.
The Solution
First Business Finance arranged a Hire Purchase (HP) agreement for over £116,000 to fund the purchase of four Excavators
- 2 × Takeuchi TB216 Excavators
- 2 × Takeuchi TB325R Excavators
The agreement was structured over three years, with the VAT paid upfront and the full purchase price financed.
Our team worked with one of our funding partners to secure the funding without the need of Directors guarantees, allowing the finance to be arranged entirely through the company. This provided the business with a straightforward, efficient funding solution while protecting the directors’ personal position.
The Outcome
By investing in its own excavators, the business moved away from ongoing hire costs and towards building valuable company assets.
The new equipment enables the business to:
- Reduce long-term operating costs
- Improve control over equipment availability
- Build equity in essential business assets
- Continue supporting growth without placing unnecessary pressure on cash flow
Most importantly, the funding was arranged quickly, allowing the business to acquire the equipment when it was needed and keep projects moving.
Looking to Invest in New Equipment?
Whether you’re purchasing machinery, commercial vehicles or specialist equipment, First Business Finance can help you find the right funding solution to support your business growth.
Speak to our team today to discuss your requirements, 01634 386869.
Our Services
Our strength lies in partnership. We take the time to understand your business – your goals, challenges and opportunities – so we can source the right financial product at the right price. Whether you’re looking to invest in new equipment, release cash flow or manage foreign currency exposure, our team will find a tailored solution that works for you.
Asset Finance
Short and long-term facilities for a specific project, product or simply for working capital with fixed monthly repayments so that you can plan with confidence.
• Equipment, machinery and vehicles
• Business asset finance to expand operations and manage cash flow
• Short term business asset finance for technology enhancements and business improvements
• Short and long term asset financing
Business Loans
For secured loan applications, you may be required to provide suitable security. Acceptable security could include assets such as commercial property, plant and machinery, vehicles, or stock. For unsecured loans, security is not required, but different eligibility criteria will apply. Unsecured loans are available up to £5 million, subject to status and approval.
Asset Refinance
Cash flow can be complicated for an SME or a start-up – you might need to pay a tax bill, raise a lump sum to reinvest, reduce finance payments, release asset equity or simplify your financial planning. Our teams can facilitate financial flexibility allowing you to seamlessly navigate what can be a demanding financial environment.
Invoice Financing
Your cash flow can be improved through debt factoring and invoice discounting – simplifying your administration processes and reducing your overheads. With expert support in place, you are able to focus on building your business. Through our vast panel of links with factoring companies and invoice discounters, we will find the right and most competitive provider for your specific business needs.
Commercial Foreign Exchange
We partner with SDFX Solutions Ltd to deliver the full range of FX products, reducing the cost and complexity of trading internationally. Delivering instant access, highly competitive rates, a dedicated account team and risk management service, we proactively keep you abreast of changing trends and sentiment. Through our Commercial FX offering, you can enjoy
• Discounted worldwide transfers (including same-day settlement)
• Access to market orders enabling you to target specific rates of exchange and secure prices 24-hours-a-day, 7 days-a-week
• Online trading facilities
Sector Expertise
Our teams have developed specific sector expertise – they understand the specific nuances of your business needs and demands. We pride ourselves on being approachable experts who make the finance process clear, efficient, and fully aligned with your goals.
Contact our team to find if we can help you find the funding you need for your business needs. 01634 386869.