Financing Plant MachineryPublished on 13th February 2017 2017-02-13T17:38:52+00:00 - Last update on 15th December 2019 2019-12-15T23:31:32+00:00
Many UK SME businesses rely on heavy plant machinery to conduct their day-to-day operations. From Dozers and diggers to forklift trucks, the range of industries that are making use of plant machinery is enormous. Businesses, from construction firms and storage centres to high street retailer establishments, all use any number of heavy duty equipment to function at peak efficiency. However, financing plant machinery can be a major worry for many business owners.
With the average cost anywhere between £20,000 – £40,000, acquiring high-quality plant machinery can drain more capital than a business is able to part with. If you’re looking to secure plant machinery but are worried about causing irreparable damage to your business, Rangewell can help.
Why finance heavy plant machinery?
With our services and broad range of expertise, getting the right machinery for your business is easier than you’d expect. So don’t stress about breaking the bank, Rangewell can source an extensive range of affordable asset finance solutions perfect for your business’s needs, allowing you to acquire everything you need exactly when you need it most.
- Leasing: An excellent finance solution for those seeking to borrow plant machinery for a set period of time, usually between 1 – 3 years. During this time, you will have to make affordable monthly payments plus interest. This is an ideal acquisition method for many business owners because maintenance and repair costs are still the provider’s responsibility. Should you wish to retain usage of the machinery once the leasing term expires you still have the option of presenting a buyer or adding an extension to the lease.
- Hire Purchase: Popular amongst factories, depots, storage centres, wholesalers and construction firms, if you’re looking to purchase machinery but lack the sufficient capital, this is a great way of eventually securing ownership. Before you receive and make use of the machinery, you will need to pay an initial deposit. This is usually 10% of the asset’s total worth. From here on, you’ll then commence with repaying the remaining sum through monthly payments. Once full payment has been made, plus interest, ownership of the asset passes on to you.
- Loans: With a loan you can borrow from £5,000 to as much as £1,000,000, allowing you to complete a full purchase for the machinery by boosting your capital. Secured loans give lenders more confidence when discussing larger sums by using personal assets, such as the borrower’s home and equipment, against the loan. If a business then fails to repay the loan, the lender can seize assets to recover the costs. Meanwhile, unsecured loans aren’t secured using assets. Instead, they require you to express a commitment to repay the loan in due course. You’ll also need to demonstrate, in detail, your business’s ability to afford the monthly repayments.
At Rangewell, our values are simple – we’re on your side. We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.
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