How Asset Finance is powering the Design & Build sector in 2021
As we move forward into the second quarter of 2021, demands on the Design & Build sector are rising. From the increase in costs of materials such plaster, steel and timber; to shortages of skilled labour; the on-site impact of the pandemic on working practices and the ever-present need to invest in the right equipment to complete the next project on time & on budget, the external pressures are mounting.
Jon Maycock, Commercial Director at Propel Finance, explains: “The resilience and commitment of the sector have stood out during the pandemic. It is the backbone of the UK economy and comes with a distinct set of working capital challenges and requirements. At Propel a number of our team members hold previous experiences of working with a variety of construction funding lenders; and understand the importance for businesses to continue to drive investment in the latest machinery and equipment to boost their productivity and growth.
“In the current challenging environment, asset finance has come into its own as a leading funding solution thus enabling businesses across the space to keep on going – and growing during the pandemic”, Jon continued.
Rather than having to make substantial upfront payments in order to acquire expensive equipment and put even greater pressure on their cash flows, more and more businesses are turning to asset finance. The advantages are clear:
Access the latest equipment immediately
Gain a competitive edge by harnessing the use of the most efficient equipment available.
Boost your cash flow
Spread your equipment costs over time, simply, quickly and conveniently.
Unleash your working capital
With no need to pay for equipment upfront, you can put your capital to work elsewhere to drive profitability and growth.
Budget with confidence
With fixed rentals throughout the term, you gain the benefits of predictability and performance.
Preserve your existing credit lines
Your existing credit lines, such as bank overdrafts and loans, remain untouched and are still available for your use.
Case Study: Tackling the toughest construction challenges
Llanishen Rugby Club and Modex Spaces Ltd
Objective
Moves to bring clubhouse and changing room facilities in line with Llanishen Rugby Club’s brand new, state-of-the-art 3G pitch were potentially out of reach after unseen additional excavation costs had stretched their budget and also put new changing rooms in doubt. A base-level of funding was required for local company Modex Spaces Ltd to get the clubhouse project underway at all, as managing director Ellis John explains: “Llanishen approached us to see how we could assist them in staged payments. I had worked with Propel previously and was well-aware of their flexibility and approach.”
Opportunity
As the project progressed, it became clear that an innovative approach to funding would be required for it to be completed. Propel worked with the club to come up with an agreement which supported Llanishen with the initial financing of the project.
Outcomes
John Andrews, Llanishen Club Secretary, said: “Having to dig into the ground, and having to establish something with flood lighting so close to a residential area – it all created extra cost. Nobody from Propel shied away from the challenges we were facing; they looked both sympathetically and constructively at solving those issues.”
Your budgets and deadlines matter.
To discuss how you could benefit from a fast, flexible asset finance solution structured to power your cash flow, call Propel’s specialist team on 01633 982922 or email [email protected].
Finance is subject to status. Terms and Conditions Apply. Propel acts as a lender or a credit broker for business customers only.