Instant increase in profit margins from Hire Purchase facility
Incorporated in 1996, Money Advice Direct Ltd (t/a Gable Asset Finance) is a business finance brokerage, specialising in asset and equipment finance. They have supported many companies with asset, machinery, vehicle and equipment facilities and offer a one-to-one bespoke service for each of their clients.
“Small but fast growing…”
Their client is a small but fast growing company based in Sutton Coldfield in the heart of the West Midlands. The business is recognised locally but is used by customers nationwide within the construction industry.
The business hires plant, tools, powered access and operators to meet the large demand for the type of service that is required for its customer base. It is committed to providing a number one service and will always go the extra mile to ensure its customers can meet stringent working deadlines.
The client was experiencing an increased demand from its customers for new and modern construction plant and machinery hire. If they couldn’t supply the equipment to meet the demand, they knew that their customers would start to look at other suppliers who could.
Plan of action
As demand was growing overall, the business was hiring out machines which it too was hiring from elsewhere. They needed to increase margins and the only way was to invest in a new fleet of machines.
A strategy was decided upon to gradually reduce the amount of machines it was sub-hiring and replace them with machines purchased on a hire purchase basis.
With the assistance of Richard Sorsky, Director at Gable Asset Finance and Karen Fryer, Business Development Manager at Close Brothers Business Finance, the business requirements were reviewed and suitable finance options discussed to enable new machines and plant to be purchased immediately and sent out on hire.
A Hire Purchase solution
By utilising the services of Close Brothers, the finance applications were reviewed within hours and due to the fast underwriting and support, finance acceptances were quickly achieved.
A finance solution of a five year hire purchase facility was offered with the option of VAT deferrals, which meant the customer’s cash flow wasn’t affected.
The increase in profit margins was instant and the company now has a new fleet of brand name machines.
Richard Sorsky, Gable Asset Finance said: “Our client was delighted with the outcome and plans to use the facilities offered by Close Brothers again in the near future.”