The problem
Two machines were at the end of their working lives and repair costs had begun to exceed what replacement would have cost over the same period. Buying outright was possible but would have taken most of the cash reserve into the quietest quarter of the year.
What we did
Hire purchase spread the cost across the years the machines would earn, secured on the assets rather than on the business.
The lender was chosen for familiarity with the specific machinery: a funder that understands resale values in a sector prices better than a generalist, and will not want to know about a sector it does not.
How it ended
Both machines were on site within three weeks and the cash reserve stayed intact through the winter.
Ownership passes to the business at the end of the agreement, which suited equipment expected to have a long working life.
Anonymised and illustrative. This describes the kind of case we arrange rather than the affairs of any identifiable client, and the figures are indicative. It is not advice and not a guarantee of what a lender would offer you.
