Site Services Contractor – Compact Excavator Fleet

Industry: Construction  ·  Project: Ten compact excavators  ·  Facility: approximately £500,000 over 60 months, hire purchase

Overview

A site services contractor in the South East won additional groundworks contracts and needed ten compact excavators, split between five and six tonne machines, to service them. The order came to just over £500,000.

Challenge

The contracts required the machines on site from day one, while the revenue from them arrived monthly across the following years. Buying outright would have absorbed the working capital the business needed to run the sites it had just won.

Solution

We placed a hire purchase facility over 60 months, structured so the monthly cost sits against contract billing. The contractor takes ownership at the end of the term, keeping residual value in the business for machines it expects to run well beyond the agreement.

Results

• Ten machines delivered together at contract start
• Working capital retained for site running costs
• Monthly cost measured against contracted revenue
• Ownership retained at the end of the term