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.

The post How Asset Finance Helped Reduce Costs and Invest in Growth appeared first on First Business Finance.

Across the sector, securing new contracts is only part of the challenge. The ability to mobilise quickly, deploy equipment and meet delivery expectations is what ultimately determines whether opportunities can be realised.

Case Study: Funding Critical Site Equipment

We recently supported a client operating within the high-rise construction sector with the funding of key site equipment:

• 2 new passenger hoists
• Total value: £249,995 + VAT
• Structured with a 10% deposit
• VAT deferred for 3 months
• Funded over a 5-year term

This wasn’t simply about acquiring equipment. The objective was to ensure the business could continue to meet growing demand from existing and incoming contracts, while maintaining financial flexibility.

The Challenge: Growth vs Cashflow

In high-rise construction, project timelines are tight and mobilisation windows are short. Equipment such as passenger hoists is not only essential to site operations-it is often required at short notice once contracts are secured.

For many businesses, this creates a familiar tension:

• Invest quickly to meet demand
• Avoid tying up significant capital upfront

Without the right funding structure in place, this can lead to delays, missed opportunities or unnecessary pressure on working capital.

The Solution: Structuring Finance Around the Business

In this case, the funding solution was designed to align with how the business operates:

• A low initial outlay to preserve cash
• VAT deferral to ease short-term pressure
• A structured repayment profile over five years

This approach allowed the client to deploy the equipment immediately, ensuring they could meet project demands without disrupting cashflow or wider operations.

Why Funding Structure Matters

In sectors like construction, it’s not just about securing the work-it’s about having the infrastructure in place to deliver it.

The businesses best positioned for growth are those that plan ahead:

• Aligning funding with project pipelines
• Ensuring equipment can be deployed when needed
• Maintaining flexibility as demand changes

Having the right funding structure in place can be the difference between reacting to opportunities and being ready to act on them.

Looking Ahead

With activity across high-rise construction continuing to build, the need for flexible, well-structured funding is only increasing.

If your business is experiencing similar pressures around growth, capacity or mobilisation, it may be worth reviewing how your current funding arrangements are structured-and whether they are aligned to where your business is heading.

Get in touch

We work closely with a panel of over 50 lenders and help construction businesses to structure funding solutions that reflect how they operate – supporting growth without compromising cashflow. 

We’re just at the end of the phone, call us on 01634 386869.

The post Supporting Growth With Construction Finance appeared first on First Business Finance.