Categories
8 Ways Construction Companies Can Make the Most of Asset Finance
With an ongoing need for modern plant and essential infrastructure, construction companies can often feel the squeeze on capital. Asset finance provides a powerful and flexible funding tool that’s specifically developed to leverage the value in assets to keep capital expenditure low and monthly payments affordable.
A dedicated asset finance partner provides your construction business with the expertise it needs to remain compliant, cost-effective, and competitive. By spreading the impact of investment, working capital is protected and growth can continue smoothly.
Clifton Private Finance is a specialist business finance broker with the experience you need to make the best use of asset finance, helping your construction firm grow to take on larger projects and more prestigious clients.
Building Business with Asset Finance
Good construction can only be done with the right tools; and that means well-maintained, modern plant, vehicles and specialist machinery. To invest directly into ownership of these expensive assets would drain the resources of even the largest international firms, and with many dedicated machines needed only for single projects, the waste would be enormous.
Asset finance provides construction businesses with the financial backing you need to access and use heavy duty machinery in the best way for your company - whether that’s to spread the cost of purchase to facilitate long-term ownership, or to provide a route to short-term rental for niche equipment.
At Clifton Private Finance, our specialist asset finance team have the industry experience you need to develop an ongoing strategy for asset management, drawing on the power of asset finance to minimise the impact of vehicle, machinery and infrastructure costs.
8 Ways Construction Companies Can Make the Most of Asset Finance
1. Purchasing Heavy Machinery
For construction firms, the primary focus for asset finance is typically when obtaining dedicated plant and heavy machinery. It would be prohibitive to take on a job requiring a medium-sized crane, for example, if half a million pounds was immediately drained from the bank account to purchase one. Instead, asset finance takes those unmanageable costs and refashions them through leasing arrangements to provide the machinery needed for an achievable monthly payment.
The flexibility of asset finance means options exist for companies looking to make full investments, paying over time for important machinery that will see constant repeated use, or for those needing a short-term hire for a single quick project - plus everything in-between.
2. Upgrading Tools and Plant Equipment
Being competitive often means having access to the latest technologies. With regular advances in construction equipment, it’s important to keep up with equipment that provides modern efficiencies, as well as those that meet all necessary safety regulations and sustainability goals.
Leasing agreements are regularly renewed, providing new versions of equipment as they become available, helping you stay on the cutting edge.
3. Running a Fleet
Construction companies have a need for a wide and reliable fleet of vehicles that mixes vans, light commercial vehicles, and HGVs. Not only would owning your own fleet outright be an unnecessary expense that drains capital, but the administration involved is time consuming and costly.
Dedicated fleet services form part of many professional asset finance leasing firms, taking the complexity of running your fleet from you and outsourcing it to experts. You gain from access to the right vehicles at the right times, with only a fraction of the administrative burden.
4. Integrated Maintenance Contracts
Dealing with repairs and ongoing maintenance can be an expensive and difficult part of ownership, especially with specialist equipment. In construction projects, having an essential piece of plant break down can cause delays that have enormous financial impact, as well as putting project timelines in jeopardy.
Asset finance maintenance contracts provide worry-free use, with a dedicated maintenance company on hand to provide temporary replacement equipment and undergo immediate repairs. For a minor additional cost, the headache of ownership is relieved entirely.
5. Meeting National and International Sustainability Goals
As we work together to meet essential net-zero targets, companies are under pressure to invest in new equipment and improve existing infrastructure. For a construction company with potentially £millions in existing machine-based assets, the capital investment to meet approaching deadlines are often significant.
Asset finance provides a route to meeting those obligations, providing the funding needed to redevelop infrastructure, upgrade existing equipment, invest in low-emission plant, and move to electric or biofuels.
6. Meeting Health and Safety Guidelines
The HSE set out clear guidelines for construction firms, which includes a need for all machines to be operating at a safe and well-maintained level. Older equipment can easily fail safety tests, while providing safety equipment can be expensive. Through asset finance, construction companies can spread the cost of meeting these essential obligations, upgrading machinery and purchasing or leasing specialist safety gear where required.
7. Paying for Temporary Buildings
Asset finance is most often associated with large-scale machinery or vehicles, but specialist finance companies will also support the purchase of other valuable assets, including temporary prefabricated or modular buildings. For construction companies needing temporary on-site offices or storage, asset finance provides a cost-effective method of obtaining the structures you need.
8. Investing in Digital Technology
Newer AI-assisted specialist technologies are rapidly entering the market for construction firms, with new surveying, purchasing and quoting tools potentially cutting the planning stages of projects to a fraction of the traditional times. Investing in these new tools can greatly improve your business model, saving in administration time and producing superior, more accurate results.
Asset finance for IT equipment can help you afford the latest software and hardware to keep your business at the very top of the game.
The Wider Use of Asset Finance in Construction
Exploring the breadth of asset finance will open the door for your construction company to gain new advantages in this competitive industry. While many see asset finance as specific tool for purchasing vehicles, its true scope is far greater, with a range of options available to be tailored to suit your exact requirements.
The modern asset finance market is made up of specialist lenders who understand the construction industry and have dedicated underwriting that takes into consideration the demanding nature of the business and the large-scale asset-based investment it requires. With a knowledgeable partner, you will discover the opportunities that asset finance offers development and construction companies.
Asset Finance with Clifton Private Finance
Clifton Private Finance is a specialist whole-of-market business finance broker. We have established relationships with the diverse market of both traditional and independent asset finance lenders, opening the door for you to obtain the low-cost targeted funding you need to boost your construction business.
We’ll compare lenders and match you to the ones who are the best fit for your actual needs, considering your business position, financial forecasts, and credit history. With access to the whole marketplace of lenders, we can find a deal that will ensure you get the assets you need. Book a free consultation now.
