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Anglo Scottish Asset Finance - Regional Growth Fund and Hire Purchase

A customer of Anglo Scottish Asset Finance required a new drilling rig for on-site investigations. With the amount of work increasing in the sector, the company recognised that the new purchase would ensure they were able to work more efficiently.

Realising that they would need support to fund the purchase, the company Director met with Murray Wark from Anglo who introduced them to Mark Gilman at Close Brothers Business Finance. Mark discussed the potential financial packages available for the customer.

Solution

Once a decision had been made on a suitable financial package, an application for a grant from the government’s Regional Growth Fund (RGF) was made through the Close Brothers Asset Purchase Scheme.

The application was successful, resulting in a grant worth £20,000 to wards the deposit, with Close Brothers providing a flexible Hire Purchase facility to cover the balance of the new equipment.

Result

The RGF grant and the HP agreement from Close Brothers enabled the customer to meet their target efficiencies for their new customers and to price their jobs competitively.

Murray Wark from Anglo commented “Our customer is a cautious borrower and wouldn’t have contemplated the purchase of a new rig without the assistance of RGF as the initial deposit would have utilised too much of the company’s working capital. This was a risk the Directors weren’t prepared to take and would have looked to purchase a secondhand rig at a lower price which wouldn’t have had the same efficiencies. The funding package put in place with the help of Close Brothers made perfect sense and was the right package for the customer.”