£260K Yellow Plant Machinery Finance Secured for Yorkshire Excavation Company

A Yorkshire-based excavation company approached Clifton Private Finance to secure asset finance for additional plant machinery after winning a new contract. To fulfil the increased workload while maintaining their existing operations, they needed to acquire two excavators and a dumper without placing undue pressure on cash flow.

Within just one week, Clifton Private Finance secured a £260K hire purchase facility for the acquisition of used plant machinery. By arranging a bespoke structure with a balloon payment, we reduced the monthly repayment burden and enabled the business to expand its fleet in a cost-effective way.

The Scenario

The client required two excavators and a dumper, each valued at approximately £80,000, to support a newly secured contract. While the additional equipment was essential to delivering the project, purchasing the assets outright would have placed significant strain on working capital.

The machinery was also approaching ten years old, making the transaction more challenging as many lenders are reluctant to finance older plant equipment due to concerns around asset value and longevity.

Challenges

Financing used yellow plant machinery can be difficult, particularly when the assets are older and expected to operate in demanding environments. We needed to:

• Source funding for machinery approaching ten years of age
• Find a lender comfortable with the risks associated with heavily used plant equipment
• Structure the facility around the client's monthly budget requirements
• Secure terms that would preserve cash flow while supporting business growth

The Solution

By assessing the client's requirements and future contract income, we built a funding proposal focused on affordability and long-term sustainability.

The key objective was to keep monthly repayments at a manageable level while allowing the business to acquire the equipment it needed immediately.

We approached specialist lenders and identified a challenger bank willing to take a more pragmatic view of the asset profile.

Through careful structuring, we secured a hire purchase facility with a balloon payment, a feature rarely available for this type of machinery, which significantly reduced the monthly repayment commitment.

The Outcome

The funding was completed within just one week, allowing the client to purchase the machinery and mobilise for their new contract without delay.

By incorporating a balloon payment into the agreement, we delivered a more affordable repayment structure that aligned with the company's cash flow requirements.

Without access to specialist lenders and bespoke structuring, the client would have been unlikely to secure the same level of flexibility by approaching lenders directly.