£60,000 Asset Finance Facility for a Construction Business
A UK construction business required additional machinery to support its growing project pipeline. Rather than purchasing the equipment outright, the company wanted to preserve its existing cash for the day-to-day costs associated with delivering its contracts.
Asset finance provided a way to acquire the equipment while spreading the cost over an agreed period.
The Business
The company operates within the construction sector, delivering projects for commercial clients across the UK.
As its workload increased, the business identified a requirement for additional machinery that was regularly being hired for use across different projects.
Management determined that acquiring its own equipment would provide greater control over availability while reducing its reliance on third-party hire.
The Requirement
The business required approximately £60,000 to acquire the additional machinery.
Although the company could contribute capital towards the purchase, paying the full amount upfront would have reduced the cash available for other operational requirements.
This was particularly important given the ongoing costs associated with labour, materials, subcontractors and mobilising new projects.
The Challenge
The requirement itself was relatively straightforward, but the business wanted to avoid unnecessarily tying up working capital in the equipment purchase.
Maintaining liquidity was important because cash requirements could fluctuate as different construction projects progressed through their respective stages.
The funding therefore needed to provide an appropriate way to acquire the machinery while allowing the company to retain more capital within the business.
The Funding Solution
A £60,000 asset finance facility was structured to support the purchase of the required equipment.
The facility allowed the company to spread the cost of the machinery over an agreed term rather than funding the entire acquisition from existing cash reserves.
This provided the business with the equipment it required while maintaining greater financial flexibility across its wider operations.
The Outcome
The business was able to acquire the machinery and deploy it across its existing project pipeline without making a significant upfront capital payment.
Retaining additional cash within the company provided greater flexibility to meet other project-related expenditure while the new equipment increased the business’s internal operational capacity.
