Build up your business through construction asset finance
In the building and construction trade, deadlines matter. And so do costs. You need to have the right equipment to hand if you want to complete your next project ahead of time and under budget, and that’s where asset finance can help. Rather than shelling out upfront for that expensive piece of machinery and putting your cash flow at risk, you could consider a project loan, lease or hire purchase agreement instead of going down the traditional route of overdrafts or extra bank borrowing.
These asset finance options let you spread the cost, while giving you access to the equipment you need straight away. The amount you borrow and the repayment period can be designed to suit your business, with delayed repayment options available in many cases. Because our brokers understand construction, and get to know you, they’re well placed to advise on the most suitable deal.
You could fund:
Machinery bought at auction
For businesses with a strong net worth and good trading history, we can offer a full range of funding solutions to help spread investment costs. Asset finance can fund a whole range of construction machinery, from diggers and earth movers to cranes, quads, ATVs and tracks.
Case study: road grading machine
- £80,000 hire purchase (HP) agreement
- 36 monthly payments of £2,475
- £150 set up fee and £75 option to purchase (payable with the last payment)
Our customer was a contracting firm that had recently won new work with the Environment Agency. They had found a 10-year-old road grading machine available to buy at auction which they estimated would sell for no more than £110,000. With a £30,000 deposit, they wanted to finance the remaining £80,000 over three years. A HP agreement allowed for monthly repayments and meant the asset could be bought and used straight away. It was important that the customer informed us two weeks before the auction of their intention to purchase, so we could make contact with the seller. Once the auction was won, we photographed and valued the asset before the buyer collected.
Private sale purchases
Asset finance isn’t just available on dealerships purchases or direct from the manufacturers. If you’re buying your next machine through a private sale, you could still consider funding the investment through a loan or hire purchase agreement. See our full range of finance options here.
Case study: telescopic handler
- £20,000 hire purchase (HP) agreement
- 48 monthly payments of £233
- £100 set up fee and £50 option to purchase (payable with the last payment)
A growing construction firm wanted to purchase a £22,000 telescopic handler from another company to help them win larger, more lucrative contracts. They needed the machinery right away, but couldn’t afford to pay for it upfront – however they did have a £2,000 deposit to put down. We helped them to fund the remainder through a HP agreement. This would allow them to secure the asset now, pay for it over time through fixed monthly repayments and have the option of owning it at the end of the deal. Because this was a private sale, they had to agree to an asset inspection – carried out by us – and to sign an acceptance certificate before funds could be transferred.
Buildings and site infrastructure
Asset finance can be used to fund essential parts of a site such as fencing, welfare facilities, generators and safety lighting. While health and safety is now an important legal duty for all firms, the costs don’t have to slow down your growth – get in touch to find out how.
Figures for illustrative purposes only and do not constitute a quotation. Applicable interest rates appropriate for the type of asset at the time of publication.