Case Study

Upgraded Machinery for Waste & Recycling Business

Company —
Waste Management
Business Type —
Water Supply & Waste Management
Requirement —
Updated Machinery
Solution —
Business Loans

Waste Collection and Recycling Business Embraces Finance to Expand

Learn how a utilities and waste management business, specialising in recovering valuable metals plastics and toxic chemical waste recycling, upgraded their offer with new machinery and consolidated existing loans with finance. Committed to sustainable practices, the company plays a crucial role in reducing environmental pollution by recycling and repurposing various forms of waste.

The Challenge

As the business expanded its operations and took on larger projects, they faced the challenge of upgrading their machinery and equipment to improve efficiency and productivity. The handling and recycling process demanded advanced machinery that could efficiently separate and clean plastic granulate from waste cables. Additionally, the need for a telescopic handler to load materials into bulk trailers, as well as move heavy plant and equipment, further emphasised the requirement for specialised equipment.

Investing in Advanced Machinery

To optimise their plastic and metal recycling processes, the business purchased a state-of-the-art cable stripping machine to add to its roster of waste handling machinery. This equipment streamlined and significantly increasing operational efficiency and improving the quality of recycled materials.

Challenges:

  1. High Initial Costs: Acquiring specialised equipment for waste recycling can involve substantial upfront investment, posing financial challenges for companies.

  2. Technological Advancements: Staying competitive requires ongoing investments in advanced machinery and technology to improve efficiency and maintain high-quality standards.

Benefits of Financing Waste and Utility Service Related Equipment

  1. Preserved Working Capital: Equipment financing (and refinancing) helps businesses conserve their working capital, allowing them to allocate resources to other critical areas of growth.

  2. Flexible Payment Structures: Tailored utility & waste finance solutions offer flexible payment structures that align with cash flow and seasonal demands.

  3. Upgraded Technology: Leasing equipment allows businesses to continually upgrade to the latest technology, maintaining competitiveness and efficiency.

Conclusion

By harnessing the power of finance, the business successfully upgraded their waste recycling processes through investments in advanced machinery. This strategic move enhanced their operational efficiency, environmental impact, and overall competitiveness in the utilities and waste management sector.

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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