TRADITIONAL FINANCE OPTIONS
Posted in: Blog | Posted on: 20 August 2020
We started this year with plans to celebrate our 25th anniversary; we felt that 25 years assisting businesses with asset finance was something worth celebrating. However like many we have had to put our celebrations on hold for now.
Whilst the pandemic may have stopped our celebrations, we haven’t allowed it to interfere with our lending ability and over the last 5 months we have lent to 65 businesses, with advances totalling circa £3 million for a wide variety of hard assets
We appreciate that many SME’s have taken full advantage of the Governments business help initiatives in the form of Bounce Back Loans, CBILS and staff Furlough schemes.
As a result of this Government intervention, many businesses are currently demonstrating a very healthy cash position and with this in mind business owner’s thoughts may turn to upgrading or investing in additional assets.
However in these uncertain times now may not be the time for businesses to go on a spending spree but to hang on to the cash instead and take a look at what assets they need to invest in by using more traditional methods of financing, such as Hire Purchase or Finance Leasing.
To give you an example we recently funded a new McCloskey R70 Screener for an established construction company. This business was no stranger to navigating its way through tough economic times, having established the family business just after the 2008 crash!
The Directors recognised that the saying ‘Cash is King’ could never be truer during economic uncertainty and whilst they had the cash in the business to fund the Screener outright, they took the decision to put it on finance instead.
With its sound ongoing contracts, disciplined experienced directors and healthy balance sheet, we were happy to support this existing customer. We agreed a Hire Purchase fixed rate facility with a 20% deposit and the balance funded over 60 months.
The business has now taken delivery of the machine and its busy earning its keep out on site!
The directors believe they made the right decision, they can budget each month for the machine whilst retaining the cash in the business.
If you would like to find out how Hire Purchase or Finance Lease could be a good option for you then please do get in contact with us.
