This property development company needed to purchase some construction equipment to assist them with growth and to take on new projects.
The Challenge
Although they could afford to purchase the construction equipment outright, they decided to retain cash flow during the festive season by spreading the investment over a longer period. Before working with Moorgate, they faced significant challenges, including nearly purchasing an excavator from an unreputable supplier that had no chassis plate.
We were then able to put them in contact with one of our partnered suppliers who restored their confidence and provided our client with professional advice for the use of the equipment, including what other equipment may be useful to enhance their operations, based on their needs and pain points. Given the client’s requirement to purchase both new and used construction equipment, we sourced a lender capable of financing assets that were both old and new.
The Solution
Initially, the client only intended to purchase an excavator. However, after discussing their needs, the supplier offered a multi buy offer including the additional equipment. This then meant that the original offer of finance was reworked, and we were able to secure them more funds than they had anticipated being able to receive.
The client went ahead with a hire purchase agreement as this allowed them to grow their balance sheet further and Moorgate Finance were able to get all of the equipment placed on one finance agreement. This streamlined their accounting process and meant that they had only one direct debit payment, despite having bought three vehicles.
Owning this equipment has also been a vital turnaround for the business cash flow. Not only do they have unrestricted access to the equipment, but the monthly payments are lower than the cost of renting the construction equipment. These savings have been reinvested into the business, allowing them to hire additional staff and expand operations. As a result of this, they have secured a contract to develop 28 bespoke homes.
The Highlights
✅ £75,000 funded for three pieces of construction equipment, allowing the client to preserve cash flow
✅ Moorgate connected the client with one of our trusted partner suppliers, restoring confidence in the client and providing expert advice on suitable equipment
✅ A reworked finance agreement secured more finance than the client anticipated they could get
✅ Ownership of equipment reduced monthly costs compared to renting, freeing up capital to hire staff, and allowed them to expand operations
Give us a call on 01908 92 62 62 or head to www.moorgatefinance.com/apply-now to start the conversation.