Fencing supplier strengthens cashflow management with Asset Finance

A business that specialises in the manufacture of high-quality fencing materials and has been trading for six years was looking to purchase a variety of key assets it was currently renting to help save on costs longer term and strengthen its cashflow strategy for the future. They were introduced to Ultimate Finance via industry broker Phil Ware at Crystal Business Finance who explains, “Crystal Business Finance has a long history with Ultimate Finance and over the last 12 years we have worked on hundreds of facilities with their team to help support the needs of our clients, ranging from Working Capital solutions such as Invoice Finance and Construction Finance, to Asset Finance. When this business came to us wanting to discuss funding to acquire key assets, knowing that we had already secured finance for it from Ultimate Finance I knew that they could tailor another facility that would be fit for purpose and so I got in touch with Stephen Brook”.

Stephen, Senior Regional Director at Ultimate Finance, says, “At Ultimate Finance we know that great relationships can make all the difference when it comes to providing businesses with access to the right financial support and help them meet their ambitions, so we make sure that the introducers we work with know exactly what we can do to help support their clients, which makes for a slick and speedy approach to tailoring facilities that get the funding in place. And because we have been supporting this business for over five years already and we are always keen to keep working with existing clients with their additional funding needs, we were able to move swiftly to the funding up and running.”.

The Ultimate Finance team arranged for the four assets to be valued, ranging from a harvester and an excavator to a Land Rover and proposed a £180k Hire Purchase solution. Stephen continues, “One of the great benefits of an Asset Finance facility is that it allows for expensive assets to be purchased without having to part with large sums of cash up front, which makes it much easier to manage cashflow whilst continuing to trade at the same levels or even grow. In this instance, the business only had to provide a 10% deposit to secure the assets and will make monthly repayments over 48 months instead of having to pay for them all in one go”.

Not only does purchasing the assets instead of renting them make for a sensible financial approach in the longer term, but the facility also allowed for the VAT payment to be deferred for up to three months to further limit the impact of the purchase on the business’ cashflow. Stephen continues, “Usually VAT needs to be paid upfront, and although it can be recovered at a later stage it is another expense that can threaten a business’ operation depending on the need for liquidity at the time of purchase. By enabling the business to defer their VAT repayment it means that the cost can be spread over a longer period and gives them the time to submit their VAT claim and get it refunded quickly”.

Ultimate Finance offers Asset Finance solutions up to £500k per asset and a total of £1.5m per single customer, with repayments spread across 12 to 60 months and finance available within just one day. Find out more.