Financial support enables business to benefit from additional contracts
With over 17 years of in-depth business finance industry knowledge, AKR Business Finance is committed to providing its customers with a bespoke service on funding requirements to meet individual needs. AKR’s aim is to build long lasting business relationships with both new and existing customers.
Whilst only becoming a limited company in 1996, AKR’s client was established nearly 30 years ago by the current directors and is now one of the UK’s leading mineral exploration and environmental drilling companies, servicing the largest quarrying and aggregate firms in the UK and overseas.
Due to the closure of a local competitor, AKR’s client was looking to purchase a 2010 build Solimec PSM 8GT drilling rig at £40,000 + VAT and a 2016 Wacker Neuson TH412 Telehandler. The assets had been repossessed by another funder from the local competitor. This machinery was required in addition to existing equipment to cater for the increases in demand from current clients.
A tailored financial solution
On behalf of the client, Adam Robb, Owner of AKR, worked with Barry Joughin, Broker Development Manager at Close Brothers Business Finance, to negotiate with the funder to purchase the equipment for under market value and employ the drilling engineers from the hirer company as they had more than 20 years valuable experience and knowledge of the customers within the industry sector.
Barry advised that the customer met the eligibility criteria for support from the Regional Growth Fund (RGF). £10,000 was successfully granted to the customer for the creation of one job. Along with the customer’s deposit of £5,000, Barry also managed to secure a VAT deferral. To support this further, a hire purchase facility was put in place enabling the client with the option to purchase the asset outright at the end of the term.
VAT deferral gives boost to cashflow
With the funding and assets in place, the business benefited from additional contracts following the departure of the local competitor, enabling them to employ some experienced key staff.
Commenting on the deal, Adam Robb said: “This equipment was required to increase our client’s levels of business and support a number of new jobs from a recently failed local business. Our client has already had numerous enquiries for water boring, without the need to advertise for work. With the RGF funding that Barry and the team at Close Brothers managed to secure for our customer and the VAT deferral, this has given a huge boost to our customer’s cash flow. They are now in the best possible position to move the business forward.”