Case Study

Construction Vehicle & Equipment

Company —
Skip Provider
Business Type —
Construction Services Supplier
Requirement —
Machinery and Vehicles
Solution —
Lease Finance
 

Provider of Key Industry Service Expands with Construction Finance

Learn how a reputable provider of eco-friendly waste management services, catering specifically to the construction industry, spread the cost of new equipment and vehicles with finance.

The Challenge

As the demand for eco-friendly waste management solutions in the construction industry increased, this business identified the need to upgrade their equipment and fleet of vehicles. They aimed to invest in modern crusher buckets for efficient waste processing and a new truck to enhance their transportation capabilities. However, these equipment upgrades required significant capital investment, which could strain the company’s finances.

Finance as a Solution

To overcome the financial challenge and enhance their services, the business partnered with Portman, specialists in providing tailored financing solutions for businesses in the construction sector, including construction equipment finance.

Equipment and Vehicle Upgrades

With the financial support from Portman the business was able to invest in state-of-the-art crusher buckets, which significantly improved their waste processing efficiency. The crusher buckets allowed the company to recycle construction waste effectively and reduce landfill usage, aligning with their eco-friendly approach. Also on the shopping list was acquiring a new skip loading truck, enhancing their transportation capabilities and enabling them to serve their clients more efficiently.

Construction lorry

Benefits

  1. Enhanced Efficiency: The modern crusher buckets improved waste processing efficiency, reducing the time and resources required for waste management, thus enhancing overall operational efficiency.

  2. Sustainable Practices: By incorporating eco-friendly equipment and waste recycling, the business strengthened their reputation as a sustainable and responsible waste management provider, attracting environmentally conscious clients.

  3. Expanded Service Offerings: The upgraded equipment and vehicles enabled the expansion of service offerings, supporting a broader range of construction companies and projects, providing an increasingly diverse range of waste disposal solutions.

Challenges for Construction Businesses and Solutions with Finance

  1. Capital Intensive Equipment: Upgrading equipment in the construction industry can be costly, but with hire purchase you can spread the cost of large equipment. Asset finance allows companies to acquire the necessary machinery without large upfront costs.

  2. Seasonal Fluctuations: Construction businesses often experience seasonal fluctuations in demand. Finance options such as business loans provide flexibility to manage cash flow during quieter periods and invest during peak times.

  3. Technological Advancements: The construction industry witnesses rapid technological advancements. Finance enables businesses to stay updated with the latest equipment, improving productivity and staying competitive.

Conclusion

Through strategic financing with Portman this business successfully upgraded their equipment and fleet, enhancing their waste management services for the construction industry. The financial assistance offered by construction equipment finance allowed them to overcome financial challenges and strengthen their position in the construction services sector.

Construction worker thinking about finance

Partner with Portman, for a successful future

There are plenty of finance options out there for you, deciding which is right for you will take time and consideration. But why should you choose these financing options from Portman?

At Portman Finance Group we are focused on serving the needs of you and your businesses, and have been doing so for thousands of other businesses since 2007, raising over £1 billion in funding for UK SMEs. 

We take the time to truly understand your business and what you need, ensuring we secure the right funding for you. As both a broker and a lender, we can also offer financial options that others cannot. We promise you will have one point of contact from start to end, providing you solutions quickly, sometimes within hours.

icon

Hire Purchase

Hire purchase usually involves paying the VAT and a deposit up-front. Fixed monthly repayments are then made, affected by whether you pay off the entire loan over the term or chose a final balloon payment. The final option to purchase is guaranteed for a nominal fee, transferring ownership of the asset to the customer.

Hire purchase is well-suited for situations where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value and will not need to be upgraded.

Explore Hire Purchase
icon

Lease Finance

Equipment leasing allows a business to acquire hard or soft assets without the upfront costs associated with large purchases. A lender purchases the item, the business then leases it through fixed monthly payments over an agreed term.

Typically, asset finance is provided for high value ‘hard’ assets such as machinery, equipment, or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering, or vending equipment, as well as premises fit-outs, furniture or even air-conditioning.

Explore Lease Finance
icon

Business Loans

Business loans are a way of borrowing money, which is repaid in monthly instalments, including interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital.

Business loans can be secured or unsecured. Portman typically provides unsecured loans which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made, these may be used in equipment refinance deals.

Explore Business Loans
icon

Start Up Loans

New businesses often need an injection of finance to get them off the ground. Asset finance for new businesses allows you to focus on running your company and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.

Using finance for your equipment means that you preserve the credit card or overdraft for contingency and operating expenses when the unexpected happens.

Explore Start Up Loans
icon

Equipment Refinance

If you recently bought a high-value item outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments including interest, whilst your asset earns you money.

If your business owns high value assets that are not currently on finance, subject to a valuation, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.

Explore Equipment Refinance
icon

Recovery Loans

Recovery Loans offer an excellent way of making sure your business gets back on its feet after the long-term effects of the pandemic and subsequent supply chain disruption. Businesses with turnovers up to £45m, including those who have previously benefited from the government’s CBILS, BBL or RLS, can apply.

Recovery Loans can be used for any legitimate business purpose or simply to provide cashflow. Rates are capped and the government continues to guarantee 70% of the outstanding balance, giving added security for lenders who are now able to consider finance for businesses who may have previously found it difficult to obtain.

Up to £2m can be borrowed on terms from 2 to 6 years. Your personal private residence cannot be taken as security.

Explore Recovery Loans