Ross Hyde
Spec
| Industry area | Loan amount | Term | Turnaround |
| Waste Management | £45k | 3 years | 1 week |
Situation
My client is a skip hire business, with a waste transfer station, established in 2019, and have been growing the business, and expanding the scope of what they can do. They had a skip lorry which was costing more and more to keep on the road, and were looking to purchase a replacement one, second hand.
Strategy
Owning a vehicle, piece of machinery or plant, as a business, can be a game of balancing the cost of keeping the equipment or vehicle operative on the one hand vs replacing it, on the other. When does the cost of replacement parts, labour, time lost, short-term hire of a replacement and your own time managing the situation become too much? When is it the right time to replace the piece of kit altogether? And is having a regular monthly loan payment a better deal than unpredictable maintenance costs?
These are questions I help many clients to solve, through discussing what a reasonable monthly loan payment would look like, so they have that figure to compare against their current outlay to keep their existing equipment running.
This client came to me regarding replacing a skip lorry, as they had found a good vehicle for sale privately.
Solution
Many banks would be uncomfortable lending, under these circumstances, but I work with lenders who are more flexible. I was able to source a deal for the £45k that the client needed, with affordable repayments over an acceptable timeframe, and ownership at the end of the term. The client was able to provide the proof that the lender required, and the invoicing and finance documents were handled electronically. This meant that the turnaround for the entire transaction was seven days, with the lorry being collected by my client at the end of the week, who were very pleased with how the transaction was handled.
The seller was also happy with the way this worked out, as they got the full price they wanted for the vehicle, without having to pay dealership fees, and a swift sale with no delays.
