Since 2020 the construction industry has seen positive growth and although there will be challenges ahead, it is expected to capture further growth potentials in the next 24 to 48 months. With more construction sites being developed there is likely to be a surge in demand for plant and heavy machinery.
The issue many construction companies will face is the purchase price of this type of equipment. It is always a challenge to assess the best options for purchasing new machinery, do you look at an outright purchase, hire purchase, finance lease or a refinancing solution? Selecting the right solution will be dependent on each individual requirement, each funding option has its own benefits and therefore it is important to make the right choice from the outset.
Utilising a form of asset finance to purchase plant and heavy machinery will enable the smooth purchase without having to invest large sums of money upfront. It is a highly versatile solution which can be used by every type of business, from a large team of engineers to a family business of home builders. Being able to purchase new machinery whilst maintaining a healthy cashflow brings broad benefits, utilising asset finance also brings other key positives:
- Immediate access to new machinery without expensive down payments
- Machinery leasing options can be tailored to your needs
- Hire purchase available to ensure you can outright purchase the equipment at the end of the finance term
- Positive tax-efficient solutions available
- Flexible finance agreements enable you to upgrade whenever required
- Budgeting is made easy with fixed payments and fixed loan terms
Here at NGI, we have been delighted to assist many companies with the purchase of heavy machinery. Recent deals we have assisted with include the financing of £165K to purchase a Unimog (a multipurpose tractor) and the financing of £200K for the purchase of a crop sprayer. A key element of one of the deals was the onsite asset inspection of machinery to ensure our lender was happy with the transaction.
Another area which we have also seen a rise in is with agricultural equipment being purchased by one farmer from another. Considered as a private sale, there are also some excellent funding solutions currently available for this.
If you would like to find out more about plant and heavy asset finance options, please call us on 01993 706403 or e-mail firstname.lastname@example.org.