Tree surgery business uses Finance Lease to access essential equipment
Our Agriculture team supported a new start arboriculture business in accessing a pickup truck with a mounted MEWP (Mobile Elevated Work Platform) and reducing their outgoings.
Requirement
A tree management and consultancy business were looking for finance to purchase a mounted MEWP. The business owner was spending a large amount each week on a private hire vehicle and wanted to purchase a vehicle to reduce their monthly outgoings.
Context
They offer a variety of services including tree surveying, pruning and felling contracts. Just over a year old, the business subcontracts to a major commercial utility provider and have a growing domestic customer base.
The vehicle is an essential piece of equipment for running the business, not only does it increase work productivity, it allows employees to practice work at great heights safely. Due to their growing clientele, they required an asset that was available to them all year round and the business owner was looking to create cost efficiencies.
Solution
Mike Foyle, Regional Sales Manager, Close Brothers Asset Finance Agriculture team, worked closely with the business to create a tailored Finance Lease agreement. The customer had found a pickup with a 13m lift, that would work well for their requirements.
A Finance Lease allows the customer to rent the asset with flexible monthly payments that are bespoke to the business. With this option, the customer could access the mounted MEWP almost immediately, without the large upfront cost of buying the asset outright. At the end of the agreed term, they have the option to extend the rental period, sell and keep a share of what the asset is sold for or return the asset if they no longer require it.
This agreement has meant the customer doesn’t need to pay high weekly rental fees and can access the equipment all year round should they need. The customer shared that they may rent out the vehicle when it’s not in use, meaning the asset could cover the cost of the monthly rental payments.
Mike Foyle commented: “It was great to work with this customer on this agreement. With our Finance Lease offering, the new start business was able to access an essential piece of equipment, increasing the productivity and safety of the workforce. I wish them all the best with their future endeavours.”
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