Plant machinery finance case studies

Real deals arranged by CW Asset Finance, the broker behind Plant Monthly: what the business needed, what made it tricky and how it was funded.

5 deals we have funded

Groundworks contractor, Leeds

A midi excavator funded in days to stop the hire bill

Used Hitachi ZX85 midi excavator from an independent plant dealer

enquiry to payout: 2 to 3 days
hire purchase: 48 months
as the deposit: VAT

The contractor was paying to hire an excavator in while it looked for one to buy, so every extra day cost money. Once it found a used Hitachi ZX85 at an independent dealer, we had the finance agreed and the dealer paid within two to three days. The VAT went down as the deposit and the rest is spread over 48 months, turning a weekly hire bill into a fixed monthly payment it owns at the end.

Tree surgery business, Strensall, York

A chipper from a private seller, paid out in six days

GreenMech EVO 165D road tow chipper

lenders asked: 4
offers back: 2
enquiry to payout: 6 days

The business found the exact chipper it wanted, unused, but in the hands of a private individual rather than a dealer. Many lenders will not touch a private sale, so we went to four that will. The lender confirmed who owned it, that no finance was outstanding and that the price was right before the seller was paid.

Read the full case study on CW Asset Finance

Fencing contractor, North Yorkshire

From one van to a sawmill in three years

Post knockers, a £20,500 generator, a £72,000 Wood-Mizer sawmill and a timber edger

assets funded: 6
start to sawmill: 3 years
sawmill: £72,000

The contractor started with no trading history and needed a first van. As the work grew we funded post knockers, a diesel generator, a Wood-Mizer sawmill and then an edger, one agreement at a time. Each one was assessed on its own facts, but a clean payment record made every next step easier.

Read the full case study on CW Asset Finance

Landscaping limited company, York

Same day approval for an established landscaper

Used Yanmar mini digger, 2 to 3 tonnes, from an independent plant dealer

approval: Same day
hire purchase: 48 months
as the deposit: VAT

A well established limited company with filed accounts is the simplest file a lender sees, and it showed. The landscaper found a used Yanmar mini digger at an independent dealer and was approved the same day, with the VAT as the deposit and the balance spread over 48 months. Strong accounts meant little paperwork and no extra deposit.

Farm near Selby, North Yorkshire

A telehandler bought privately from another farm

Used Manitou telehandler, bought privately from another farm

enquiry to payout: 1 to 2 weeks
hire purchase: 60 months
farm to farm sale: Private

The farm found the Manitou it wanted on another farm rather than at a dealer. A private sale means more checks before a lender pays out: who owns the machine, whether any finance is still owing on it and whether the price is right. With both farms VAT registered, the VAT went down as the deposit and the balance runs over five years.

Every application is assessed on its own merits and all finance is subject to status. These are past outcomes, not a guide to what any other business will be offered.

How the numbers work: worked examples

Example, not a real customer

Two 9 tonne dumpers for a hire fleet

A plant hire company adding to its fleet. Two used 9 tonne front tip site dumpers on one agreement.

price plus VAT: £58,000
VAT as the deposit: £11,600
a month for 48 months: £1,468

Putting both dumpers on one agreement means one set of paperwork, one payment date and one end date. A hire company can set the term against how long the machines will earn on hire before they are sold on.

Worked out at an illustrative fixed rate of 9.9% a year. Total payable £82,076 including the VAT deposit.

Example, not a real customer

A ride on roller for a groundworks firm

A groundworks firm that has been hiring a roller in. Used ride on twin drum roller.

price plus VAT: £18,500
VAT as the deposit: £3,700
a month for 36 months: £596

A shorter term suits a smaller machine. Once the roller is needed more than a few weeks a year, the monthly payment is often close to the hire bill it replaces, and the firm owns the roller after three years.

Worked out at an illustrative fixed rate of 9.9% a year. Total payable £25,159 including the VAT deposit.

Example, not a real customer

A used wheel loader for a recycling yard

An aggregates and recycling yard. Used wheel loader around 15 tonnes.

price plus VAT: £45,000
VAT as the deposit: £9,000
a month for 60 months: £954

A wheel loader from a mainstream maker holds its value well, so lenders are comfortable spreading it over five years. The VAT paid at the start is usually reclaimed on the next VAT return.

Worked out at an illustrative fixed rate of 9.9% a year. Total payable £66,234 including the VAT deposit.

Example, not a real customer

A compact track loader for a new landscaping business

A landscaper in the first year of trading. Used compact track loader.

price plus VAT: £24,000
VAT as the deposit: £4,800
a month for 48 months: £608

With no accounts yet, lenders look at the person: trade experience, credit history and whether they own a home. A first machine may need a deposit on top of the VAT; this example shows the simplest case with the VAT as the only deposit.

Worked out at an illustrative fixed rate of 9.9% a year. Total payable £33,962 including the VAT deposit.

Example, not a real customer

A used dozer for a civils contractor

A civil engineering contractor. Used crawler dozer.

price plus VAT: £65,000
VAT as the deposit: £13,000
a month for 60 months: £1,378

Larger earthmoving machines are often bought at auction. Agreeing the finance before bidding means the auction house can be paid on time, rather than scrambling for funds after the hammer falls.

Worked out at an illustrative fixed rate of 9.9% a year. Total payable £95,672 including the VAT deposit.

These examples are illustrations to show how the finance works. Your rate, deposit and term depend on your business, the machine and the lender, and all finance is subject to status.