Financing the right vehicle can help a business enter a new market while keeping monthly costs manageable and allowing the asset to generate revenue from the outset.
An aggregate haulier and grab business approached Transition Finance looking to acquire a new type of vehicle for the business: an HGV crane drawbar vehicle. With vehicle costs having increased significantly since they first started exploring the investment, keeping monthly rental costs low was a key priority.
Highlights
- HGV crane drawbar vehicle financed
- Longer finance term used to keep monthly costs lower
- 1+ deposit structure
- Vehicle designed to become profitable within its first few months
- Enabled the customer to win national contracts
- Growth of the venture facilitated the addition of a sister vehicle
The Challenge
The customer was looking to expand into a new area of the business with the acquisition of an HGV crane drawbar vehicle.
However, vehicle costs had increased significantly since they first began looking into the investment. As this was a new venture for the business, keeping the monthly rental as low as possible was important to ensure the vehicle could generate a return without placing unnecessary pressure on cash flow.
The finance therefore needed to be structured around the customer’s plans for the new venture.
The Solution
Transition Finance structured the finance using a longer term to help keep the monthly payments as low as possible, alongside a 1+ deposit structure.
This allowed the customer to acquire the new HGV crane drawbar vehicle while keeping the monthly costs manageable and giving the new venture the opportunity to become profitable within its first few months.
The Outcome
The customer was able to put the new vehicle to work, using it to win national contracts and establish the new area of the business.
The growth of the venture created further opportunity, ultimately facilitating the addition of a sister vehicle and allowing the business to continue expanding.
Could the Right Finance Structure Support Your Next Investment?
If you’re looking to add a new vehicle or equipment to your business, the right finance structure could help you manage monthly costs while giving your investment the opportunity to generate income from the outset.
Speak to Transition Finance to explore your funding options, 01908 039 489.