The construction industry is steadily growing year-on-year and with the ever-increasing demand for new machinery and equipment, business owners are looking at how they can finance their expansion.
Cash flow still remains a major challenge for many businesses and it is important that they have access to appropriate finance to fulfil their plans.
Traditionally companies would choose to speak to their bank for a loan or overdraft, but that is not the only, or necessarily the best option, for every business. There are different types of finance options available and Close Brothers offer an alternative to traditional bank lending through Asset Finance.
We have more than 25 years experience in providing flexible finance solutions to businesses across a variety of sectors, nationwide. Our expertise in the Construction industry, combined with a variety of products, such as Refinancing and Hire Purchase, allows us to create bespoke solutions that are tailored for each individual customer. With the backing of Close Brothers Group plc, a FTSE 250 financial services company, our facilities help thousands of customers put their assets straight to work and keep working capital intact.
Asset Finance lending volumes are constantly rising and as a sustainable funding method that allows a business to purchase equipment and machinery with a low capital outlay, it offers a range of benefits including tax breaks and flexible repayment schedules. It has evolved over the years and is now an increasingly popular source of valuable funding for businesses.
If you haven’t considered it before, here are some reasons why you should:
- Flexible – the loan is generally secured against the asset you are purchasing so there is a good deal of flexibility in terms of the asset you acquire, helping to free up your working capital.
- Gives you options – people using asset finance don’t put all their eggs in one basket because finance from a third party does not impact on existing bank borrowing facilities.
- Predictable and stable – overdrafts are under constant review by your bank so if you have a downturn in business or a temporary issue with cash flow the facility can be reduced or withdrawn at the point when you need them the most. Asset Finance avoids this problem by agreeing monthly repayment profiles at the outset, giving you certainty around your financial commitments.
- Refinancing - an excellent means of raising funds against unencumbered company assets and can be a very effective way of releasing capital for a business. When banks are becoming increasingly reluctant to provide overdrafts and the alternatives such as invoice financing may not be suitable to every business, refinancing is a great way of releasing funds.
We further support SMEs through the RGF Asset Purchase Scheme. This is a scheme set up to deliver grant assistance from the Government’s Regional Growth Fund, a £3.2 billion fund for SMEs granted via intermediaries such as ourselves. It aims to support private sector investment to create economic growth and sustainable employment across the English regions.
The size of the grant available is based on the level of proposed investment, the size and location of the business, and finally the number of sustainable full time posts being created or retained.