Asset Finance Success Story: going the extra mile to finance a grab tipper
All the information you need
Whatever your line of work, the right equipment is vital. Your business depends on your equipment and you can’t afford to work with anything but the best. Fortunately, you can depend on Rangewell to help you secure the funding you need.
We recently helped a drilling business secure - not just funding for a grab tipper - we helped them find the vehicle itself.
TL:DR - When a client in the construction sector needed to fund some new essential equipment, we were able to step in and arrange not just the finance but also help with the application. But when the dealer sold the equipment the same day the funds came through, we were able to go the extra mile to source a replacement from our contacts with the specification the client wanted, and use an Asset Finance package to cover the cost at just 5.5% over five years.
“We ask a lot from our vehicles. The grab tipper goes to work every day, gets tonnes of rubble thrown in the back - and comes back for more every time. We’ve even used it to dig when space and time were short. We had worked our old wagon into the ground, and needed to replace it - when I saw a two-year-old DAF at £90,000 I realised it could be perfect if I could secure the finance I needed.”
Our client was a drilling and digging contractor, working in the North-east of England. His core business was trenching and install piles for utility companies, and his small team were kept busy - and so was his equipment. One of his main workhorses was his grab tipper. Using a hydraulic crane and mechanical grab, the tipper can self-load spoil from the side of the road and deliver backfill materials directly into the site. Being able to load and unload in areas where space is limited offsets the payload weight penalty of the grab and arm - and avoids the cost of a separate machine for loading and unloading.
“Kit is expensive, and we ask a lot from it. We’re particular - we only use DAF for our tipper grabbers because we have found that, over the years, they have the reliability we need.”
He wanted a DAF 8X4 with the full spec including cameras and a clamshell bucket, and ideally a Terex crane - despite a high cost inevitable with high quality, high spec machine.
He was pleased to find a suitable used model in his local dealer’s stock. It was just two years old and had been well maintained, but at £90,000 it meant a substantial saving compared with a new truck from the manufacturer.
“It was perfect for what I wanted, but I needed to find a way to finance it.”
The dealer was able to provide finance which would cover the cost, but our client was concerned that the rate for the finance they were offering seemed high. Dealers offer funding to make it easier to buy high-cost items and make it easy to close a sale. However, it is worth looking closely at exactly what the dealer is offering, and shopping around for better alternatives. At Rangewell we have found that, in many cases, the cost of dealer finance is inflated by the dealer, who will expect to make an extra profit from selling you their finance package.
Going direct to a lender and arranging the funding yourself can save money - and at Rangewell, that is just what we help you to do.
“I called Rangewell to see what they could do.”
The business owner approached our funding experts for a better solution.
We have a network of business finance experts that cover the country, as well as established contacts within virtually every lender in the UK market. Our local team were able to call on the client and help them look at the possible solutions.
They saw that the ideal answer would be Asset Finance.
Asset Funding for construction equipment
Buying any type of heavy machinery requires a major capital investment. When it’s a big item, like a grab tipper, even large businesses will not have the funds waiting in the bank.
Asset Finance can offer a solution. With an Asset Finance package, lending is secured on the equipment or asset itself. This means that if there is a problem and the borrower cannot make the repayments, the lender will take the asset to recover their funds. The upside of this is that their rates to you as the borrower can be much lower.
This can make it much more competitive than other types of funding when you want to buy equipment of virtually any type.
With Asset Finance, not only is there no risk to your other business assets, but the rate you are charged and your monthly repayments can both be lower too.
Asset Finance covers a number of funding arrangements:
Spreading the cost of buying
Hire Purchase - or HP - spreads the cost of buying your equipment. Technically, it lets you hire an asset, such as a tractor, until you have paid for it in full.
You pay a deposit plus fixed monthly instalments for the agreed term, which usually lasts between 12 and 72 months. HP is the ideal solution for durable equipment you‘ll want to keep for long-term service.
Removing the capital cost
Leasing can provide the equipment you need without the cost or commitment of buying it - or of any upfront costs.
Leases work like rental agreements. You pay a monthly rental charge to use the asset, although it will never become yours. Maintenance, repairs, and registration can be the responsibility of the leasing company.
Despite what you may have been told, it is perfectly simple to arrange Asset Finance for used equipment - even as part of a private sale. All that is required is that the equipment is in good condition and could be resold if required.
How we helped
We know the lenders who can help provide funding to the construction sector, and called a number of them to find the most competitive rate for our client’s tipper purchase.
Once we had found the rates and term that would best meet his financial circumstances, we helped him with this application.
Ensuring that there were no last-minute problems helped ensure the application was approved - and funds made available in the shortest possible time.
But we didn’t stop there. We had agreed the funding - but the dealer sold the truck on the morning our client received clearance to draw down the funds.
So we used our knowledge of the truck dealers in the area - many of which we had helped with funding in the past - and rang around to find another truck with the specification our client wanted.
He had his truck and the funding that he needed to buy it - because we went the extra mile.
The deal we arranged
Our client needed the most competitive rate as well as fast access to cash. We work with all the lenders in the UK market, and not only do we know which are most suitable for a particular type of deal or a particular sector, we know those that can offer the most cost-effective solution.
- We were able to secure the funding required at just 5.5% over five years.
- £90,000 - less 10% deposit - at 5.5% with 5 years to repay
“Rangewell had someone on the ground who could deal with our application personally - and they were happy to put in the extra effort to get us the truck we needed as well as the finance. That is service that most finance providers cannot offer!”
We provide refinancing too
Are you currently paying for your vehicles under a finance arrangement? You may be able to reduce the cost by refinancing.
At Rangewell we can look at your existing deal and can frequently arrange refinancing - a way of paying off your existing finance by replacing your current deal with finance from another lender, and at a more competitive rate.
It could mean cutting your monthly outgoings.
This is known as Asset Refinance. Ready to find out more about Asset Refinance? Contact us now if you think your business could benefit from it.
Rangewell finds the financial solutions that your business needs now
It is always tempting to try to get more use out of tired equipment, but it can be a false economy. Older equipment will make your business less productive, increase the risk of breakdowns – and mean safety issues that can lead to injury and liabilities.
Investing in new or quality used equipment can actually reduce your costs overall - but getting the most competitive interest rates and the terms that are most appropriate for you and your business is vital for your bottom line.
The Rangewell service is easy to use - and lets you talk to an Asset Funding expert to get a solution that is planned around your business needs. We can call on our network of lenders, which includes virtually every name in the UK market to get the funds you need quickly.
Just call us and one of our Business Funding Experts will be able to discuss your options and work out the most cost-effective ways to provide the funding you want - whatever the challenge your business plans present - and in most cases, our services are absolutely free.
Equipping your business costs less with help from Rangewell
- Asset finance expertise - for all types of asset
- Individual arrangements tailored to your circumstances
- Adverse Credit – no problem
- Repayments geared to your turnover
- Understanding the funding challenges for your sector
- Personal service
Talk to Rangewell – the business finance experts