Case Study

Pharmaceutical Expansion with Equipment Finance

Company —
Pharmaceutical Lab
Business Type —
Science and Pharmaceuticals
Requirement —
Equipment Investment
Solution —
Lease Finance & Business Loans

Advancing Pharmaceuticals Division through Strategic Finance

See how a leading independent pharmaceutical company dedicated to research, development, and manufacturing of innovative healthcare products, expanded its operations with business equipment finance.

With a strong commitment to scientific excellence and patient well-being, the business provides a wide range of pharmaceutical solutions, including capsules, tablets, and liquid formulations. The company’s state-of-the-art laboratories and cutting-edge research facilities enable them to stay at the forefront of the industry.

The Challenge

As the business sought to expand its pharmaceuticals division and increase production capacity, they faced the challenge of acquiring new and advanced equipment. To meet the growing demand for their products, the company required an automatic capsule filling machine and pharmaceutical cold rooms. However, investing in such sophisticated equipment involved significant capital outlay, which could strain their financial resources.

Investing in Advanced Equipment

With the support of Portman, the business was able to receive scientific, research & lab finance. With this they purchased cutting-edge equipment that allowed them to streamline their capsule manufacturing process, increasing production efficiency and output. Additionally, they invested in pharmaceutical cold rooms to ensure optimal storage conditions for their sensitive pharmaceutical products, maintaining the integrity and stability of their formulations.

Benefits and Challenges in the Science and Technical Industry Sectors

Benefits:

  1. Scientific Advancement: Investing in advanced equipment with equipment finance fosters scientific research and development, allowing companies to create innovative products and solutions.

  2. Enhanced Productivity: Upgraded equipment improves operational efficiency, enabling businesses to meet increasing demand and scale their production capacity.

  3. Quality Assurance: State-of-the-art equipment and facilities ensure product quality and compliance with regulatory standards, earning trust from customers and stakeholders.

Challenges:

  1. Capital Investment: Acquiring advanced equipment and research facilities involves substantial upfront costs, posing financial challenges for businesses.

  2. Regulatory Compliance: Operating in the highly regulated pharmaceutical industry requires adherence to strict quality and safety standards, adding complexity to equipment acquisition and facility management. The latest equipment and facilities can help neutralise some aspects of this challenge.

Solving Challenges with Finance

Science and technical industry businesses can overcome financial barriers through a variety strategic finance options. Purchasing or refinancing equipment allows companies to spread the cost of cutting-edge kit over time, preserving working capital for research and development. Additionally, Portman can offer tailored solutions that provide flexible payment structures, design to the needs of the business including lease finance, hire purchase and equipment loans.

Benefits of Investing in New Equipment or Facilities for Pharmaceutical and Science Businesses

  1. Increased Production Capacity: Advanced equipment enables pharmaceutical businesses to scale up production and meet the growing demand for their products.

  2. Accelerated Research: Cutting-edge facilities and equipment facilitate faster and more precise research, accelerating the development of new pharmaceutical solutions.

  3. Improved Product Quality: State-of-the-art equipment ensures consistent product quality, boosting customer confidence and satisfaction.

Conclusion

By leveraging the benefits of finance, the business successfully expanded its pharmaceuticals division through investments in advanced equipment.

The strategic use of financing solutions empowered them to overcome financial barriers and position themselves as a scientific leader in the pharmaceutical industry.

Additionally, other pharmaceutical and science businesses can capitalise on the benefits of investing in new equipment, advanced technology or facilities to enhance their capabilities, increase productivity, and drive innovation in the competitive science and technical sectors.

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.

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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.

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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.

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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.

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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.

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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.

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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.

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