Case Study

Plant and Vehicle Finance

Company —
Communication Company
Business Type —
Tele Communications
Requirement —
Range of Plant Vehicles for Networking Installation
Solution —
Lease Finance & Business Loan

Plant and Equipment Finance, Expands Communication Business Offerings

Learn how a leading provider of comprehensive communication solutions, partnered with Portman to aid their financial planning and with strategic finance were able to specialise in network installation service, committing to delivering its own high-quality and reliable infrastructure installation, maintenance, and support.

The Challenge

As the business expanded their operations and took on larger network installation projects, they recognised the need for a range of specialised plant vehicles to enhance their efficiency and capabilities. Additionally, they faced outstanding debts on rented vehicles, which were affecting their financial stability.

Finance as a Solution

To address their financial challenges and improve their offerings, the business partnered with Portman to aid their financial planning. The aim of obtaining tailored plant & equipment financing solutions to help spread the cost of expanding their network cable installation offer was paramount.

Plant Vehicle Upgrades and Business Loan

With the financial support from Portman the business invested in a range of specialised plant vehicles, including the versatile 12-tonne GVW pole erection unit. These vehicles significantly enhanced their capabilities for network installation, enabling them to take on more complex and demanding projects. Additionally, they took a business loan to consolidate their outstanding debts and purchase the vehicles they were previously renting.

Benefits

  1. Enhanced Capabilities: The new plant vehicles empowered the business to handle larger and more challenging network installation projects, increasing their efficiency and productivity.

  2. Improved Financial Management: The business loan helped consolidate their outstanding debts, simplifying their financial management and reducing overall financial burden.

  3. Cost Savings: Owning vehicles through heavy plant machinery finance proved more cost-effective than renting, leading to long-term cost savings for the company.

Challenges for Plant and Equipment Hire Businesses and Solutions with Finance

  1. Capital Intensive Equipment: Acquiring specialised plant vehicles can be capital intensive for businesses. Plant hire equipment finance from Portman offers a flexible solution to access the necessary machinery without significant upfront costs.

  2. Diversification of Equipment: The plant and equipment hire industry requires businesses to keep up with the latest machinery to meet diverse client needs. Finance allows companies to continuously upgrade and diversify their equipment offerings.

Benefits of Plant Machinery and equipment Finance

  1. Preserved Working Capital: Opting for heavy plant machinery finance allows businesses to preserve their working capital for day-to-day operations and unforeseen contingencies.

  2. Flexible Repayment Options: Heavy plant machinery finance offers flexible repayment options tailored to the business’s cash flow, easing the financial burden.

  3. Accelerated Growth: Financing heavy plant machinery enables businesses to invest in critical assets that accelerate their growth and capacity to take on more projects.

Conclusion

Through strategic financing with Portman the business successfully upgraded their capabilities with specialised plant vehicles for network installation. The financial assistance offered by heavy plant machinery finance allowed them to overcome financial challenges and a business loan to consolidate their debts and position themselves as a leading provider of communication solutions.

With enhanced capabilities and improved financial management, the business continues to thrive in the competitive plant and equipment hire industry, attracting more clients and ensuring business growth.

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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