Industry: Engineering
Product: Finance Lease
Facility size: €50,000
The client
For over 25 years this engineering business has provided structural steelwork services in Ireland and the UK, producing over 200 tonnes of steel every week.
They also offer a complete fabrication steelwork service, from design and detailing to transport and site erection.
They are now entering a period of expansion and looking to increase the number of construction projects they can work on, benefiting both existing clients and new prospects.
The challenge
In construction, the right plant and machinery is critical for business growth. After reviewing their assets, they realised the addition of a gantry crane would significantly improve large-scale operations by speeding up build times of projects involving heavy-load lifting.
Acquiring this type of high-cost specialist machinery does, however, require significant capital investment, which would affect the company’s cash flow.
Unfortunately, construction routinely faces various headwinds – including late payments and project delays – meaning that retaining adequate funds for unexpected events is crucial.
To mitigate these challenges, they decided to seek funding support for their plans.
These can be caused by a range of factors, including bad weather, staffing, travel disruption, labour disputes, etc.
The solution
The experts at Close Brothers Commercial Finance provided a tailored asset finance solution with a €50,000 finance lease. This gives the company full use of the equipment with no upfront lump sum-investment, and peace of mind in managing their cash flow with predictable monthly payments.
Finance lease also gives companies the option to enter a secondary rental period once the primary lease term finishes. Businesses experiencing rapid growth and requiring additional machinery may later opt to sell the asset, receiving a significant portion of the sale price, or alternatively return it to Close Brothers.
The result
With the new specialised, overhead gantry in place the engineering firm is constructing larger projects, attracting new clients and expanding its business.
