Getting Paid Upfront
Residential Housing Contractor
Finance equipment, don’t rent
Clear Business Finance helps a residential housing contractor to repackage their finance application, avoiding the need to rent equipment and subsequently reducing monthly outgoings.
The Challenge
A construction company who specialises in the building of residential housing was experiencing challenges when trying to obtain funding for capital equipment within their business. The main problem was that the shareholders were associated with a business that had failed in the past. This resulted in their bank rejecting the application and failing to support them in their hour of need.
The client’s inability to obtain an equipment finance agreement through their normal funding channels, meant they were dependent on expensive short term rental agreements. This was becoming a massive draw on cash flow and was eating away at their margin.
Key Facts
Amount Financed
£27,500
Product
Equipment Finance, Hire Purchase
Location
Harrow, Middlesex
Speed of approval
48 hours
The Results
Clear Business Finance took the time to understand the customers plans and how the required funding would enhance their business. Subsequently, we put together a comprehensive cost justification proposal for the acquisition of a new Manitou MT1440 Telehandler and demonstrated how this would reduce overheads and increase profitability. As a result, from within our panel of lenders we secured the client a £27,500 Hire Purchase facility over a 60-month term on very competitive rates.
Immediate monthly savings were made because the client no longer needed to rent the equipment on expensive short-term agreements which they had been paying between 30% - 40% more for. By having the Manitou MT1440 Telehandler as part of their own fleet, they could sub-let the machine to generate additional revenue and more importantly the asset was now at their immediate disposal, meaning they could react more quickly to business opportunities as and when they arise. Title of the machine would also pass to the client at the end of the agreed term meaning they would own the asset outright.
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