Equipment Hire Business – Excavator Fleet Investment

Industry: Plant hire  ·  Project: Ten compact excavators  ·  Facility: approximately £250,000 over 60 months, hire purchase

Overview

A long established equipment hire business needed ten additional compact excavators to meet steady demand from local contractors. The order came to around £250,000.

Challenge

The business could see the demand but not the cash to buy ahead of it. Every month the machines were not on the yard was hire income it could not bill, and funding them outright would have left the business exposed through a quieter winter.

Solution

We arranged a hire purchase facility over 60 months, with the monthly cost checked against expected utilisation before the order was placed. The business knew what each machine had to earn to cover itself before committing.

Results

• Ten machines added to the hire fleet
• Monthly cost tested against utilisation before ordering
• Cash reserves protected through the winter period
• Machines owned outright at the end of the term