Financial solutions for Engineering Consultants

As a Consulting Engineer, your engineering qualifications are the foundation of your career - but it is your practical experience with construction projects in the real world that you have built on it that is key to your success. Being able to plan, design, supervise and lead the maintenance of any type of structure means having real skills that are sought after by clients of all kinds - from the construction industry to major property plan and infrastructure operators.

Running your own Engineering consultancy can mean making the most of your skills, experience and connections. Being able to provide full Engineering Project Management, responsible for providing practical solutions, budgeting, negotiating costs and ensuring that a project runs smoothly from start to finish is a valuable skill.

However, it means that you have financial as well as professional challenges. Cashflow can be erratic, a downturn in the economy can affect the projects available, and you will need financial support while you build a reputation and a list of clients. Securing the funding you need to support your own business can be challenging.

At Rangewell, we work with property professionals across the UK. We know the challenges you face - and the financial solutions that can provide the most effective answers to them.

The funding options you need as an engineering consultant

You may need to find the right type of  funding option to help you with:

• Setting up a new consultancy
• Buying into an existing consultancy
• Acquire premises
• Acquiring equipment and assets
• Provide working capital
• Cashflow finance
• Finance growth 
• Deal with tax
• Dealing with problems

Setting up a new Engineering Consultancy business

Your skills, experience and your contacts are your stock in trade. However, even if you have profitable clients to bring to your new consultancy, the first weeks and months may be slow in terms of revenue.

You may be working hard to find new clients and to close deals, but achieving the level of actual sales you need to create real profits from your new venture could take years.

You may also need to find the specialists staff or suppliers to support your own skills:

• Technologists – to specialise in the technological and mechanical side of engineering
• Planners – play a large role in the initial designs of projects
• CAD Operators – prepare drawings and blueprints using computer-aided design.

Simply taking on a serviced office will require an upfront payment, while renting a small office will mean acquiring a piece of equipment from a desk and chair to a computer. Overheads - electricity and business rates - will have to be paid for, and you will need to invest in marketing and setting up a website. You will need a vehicle and your staff costs will also potentially be high. In short, costs may soon mount up.

Your bank may not be able to lend if you’re starting up a new business venture. An overdraft used to be a versatile solution for fledgeling businesses, but since the credit crunch, these may also be increasingly difficult to arrange.

At Rangewell we understand the challenges - and know the lenders who can support new business ventures. Find out more about new business funding for Engineering Consultancies.

Buying into an existing Engineering Consultancy business

Buying into an existing business could be simpler than starting up yourself, and provides a business that has demonstrated profitability. The costs involved may be high - they will depend on the turnover of the business and the potential it offers for the future, but lenders may be more sympathetic because they see the risk of lending to an established business as much lower.

We can help you find solutions to let you buy into an established practice. These include funding for partner buy-ins and buyouts, which will let you become a partner or acquire an entire business, and business acquisition funding, which often takes to the form of a secured loan.

Alternatively, if you already own an established practice, you might want to consider acquisitions, mergers or expansion. The costs involved may be substantial if you want to acquire a complete profitable business - but the rewards may make the investment worthwhile.

Alternatively, we can also provide solutions to let you selectively acquire assets - such as the goodwill and client list - from an existing property sales business closing down for reasons such as retirement.

Funding for premises for your business

Naturally, the actual cost of renting even a small office will depend on your location, and the square footage you need - it may be best to take on more space than might be necessary to let you expand in the future. 

Remember, there may be service charges and business rates on top of the bare lease. You may need upfront funding to secure the agreement - we can provide a number of solutions to help you.

Renting will mean ongoing costs, and leaves your business at risk of rent increases. Buying with a commercial mortgage could decrease your monthly outgoings, and provide a valuable asset for the future.

Commercial mortgages could put the property you want in reach. Of course, all commercial property finance is arranged on an individual basis - but as a professional, you should have no difficulty in securing rates that reflect your status. We can provide solutions which will let you buy the premises you already operate from or buy a new freehold property to use as your offices in the future.

Refurbishing premises for your Engineering Consultancy

Buying premises may be a good tactic for your business, but you may need to make an additional investment to bring premises up to the standard you require. We can provide solutions which will let you fund refurbishments - from light decoration to major building work and extensions.

Find out more about refurbishment finance options here.

Funding for your equipment

Even a small consultancy business may face a surprisingly large bill for equipment. Your IT setup, computers and a large-format printer will be expensive items, and you will almost certainly need specialised software with operating licenses and renewals, training and maintenance.  

The list of equipment you need will not stop there. You may need considerable surveying tools - some consultants are even using drones with cameras to help them examine hard to reach areas. 

Asset Funding can usually provide the most cost-effective solution for most business equipment needs. There are several types of Asset Funding. Hire Purchase may be ideal for items that you will wish to keep, such as desks, chairs and document storage. Leasing may be more appropriate for your IT, as it will allow you to update to use the latest and most reliable technology whenever you need it. Contract Hire might help you reduce the costs of providing vehicles.

At Rangewell our experts can help you find the most appropriate Asset Funding solutions for your engineering consultancy business, with both HP and lease agreements, together with business Contract Hire for your vehicles.

We also have specialised funding to help you provide and upgrade your IT equipment. 

Cashflow finance for Engineering Consultancy businesses

Cashflow support and working capital finance may be necessary to provide cash to deal with overheads, especially during the early stages of a business. It is designed to be repaid in the short- to medium-term, once your business has taken on sufficient ongoing work to provide the cash you need. 

Solutions exist to act as a safety net for successful businesses which experience a temporary downturn. Find out more about working capital finance for Engineering consultancy businesses or contact our team directly to find out about cashflow options.

Large-scale finance can also be required if you have plans such as taking on more staff, and especially if you are planning on acquiring a competitor - which is the preferred route for many engineering consultancies with an eye on growth.

Growth Finance is structured to help support this growth and can provide upfront cash which will be repaid once your business has started to enjoy the growth you planned. Lenders may require an established trading history and record of profits, but it may be possible to arrange Growth Finance based on your profit projections, rather than on your trading history. Find out more about Growth finance for Engineering consultancy businesses.

Covering Professional indemnity costs for your business

Working on major projects where you are ultimately responsible for every aspect of success and safety of multimillion-pound structures and facilities makes it essential for your consultancy to have the highest level of professional indemnity insurance. This may be a major expense, particularly if you work in the corporate commercial sector where liabilities may potentially reach into the millions. There are a number of ways to provide for the costs. Contact us directly to find out more about professional indemnity solutions for your Engineering Consultancy business.

Funding to cover tax and VAT commitments

Large quarterly VAT or annual tax demands can cause major problems with cash flow. Tax Loans help you to spread the cost of your tax demands into affordable regular monthly payments which can be easier to deal with, offering better control of cash flow, and help avoid costly potential issues with HMRC.

See how a Tax Loan can mean better control of cash flow with fixed monthly payments.

Invoice Finance for Engineering Consultancy businesses

Large corporate clients will then often take months to pay. With an Invoice Finance arrangement, you can draw down cash as soon as you invoice for a project you you have managed. It ensures that your business can rely on a steady flow of cash that keeps pace with the amount of business you do - supporting growth as well as dealing with cashflow worries.

Find out more about Invoice Finance for Engineering consultancy businesses.
 

 

Dealing with problems

Any commercial concern can run into trading difficulties which have financial impact. A cashflow problem can be triggered by a slow paying client or a downturn in the sector, and discovering that you cannot meet your immediate commitments could mean that problem escalates.

At Rangewell, we know the solutions which can help your business deal with this kind of challenge.  We can provide funding solution if your business has run into difficulties - and even if you have a damaged credit history or CCjs, we know the lenders which can help.

Find out more about finance for Engineering consultancies facing financial difficulties.

How we help engineering consultants capitalise their business

Getting the capital you need to run your business is key to its success. At Rangewell, we know that finding the most appropriate solution for your needs takes a through understanding both of the lending market, and the products available from it.

We know the lenders who can offer the most competitive rates for businesses in the property sector for all types of finance, including Professional Loans, Unsecured and Secured Loans,As well as conventional loan products, we can help you find Alternative Funding, using new loan providers and innovative funding solutions.

Whether you have a straightforward finance need, or require a complicated ‘Jigsaw’ funding plan made up of a combination of products, we can work with you to find the answers that are right for you and your plans for the future.

Call us now to get our experts working for you.