Concrete batching plant finance

Concrete Batching Plant Finance

Your ready to buy one of our machines and know how much of a benefit it will be. We offer concrete batching plant finance.

Purchasing an asset whether it be your home, vehicle or new concrete batching plant can be a big outlay and you can not afford to wait around whilst you save up, the benefits you can achieve are now, not later!

Machine finance (or asset finance) is a great way of being able to purchase the machine now! This type of finance traditionally operates in one of 3 ways: Hire Purchase, Finance Lease or Operating Lease. This article will give you an insight into these options and some of not so traditional choices that you may prefer. To own or not to own, that is the question.

Before we get into the detail, let’s consider this simple question: Do you want to own the machine? Either during or at the end of the finance arrangement?

If the answer is “Yes” or even “Maybe” you should focus on reading the Hire Purchase and Finance Lease sections alongside our less traditional options.

If you are in the “don’t mind” space, read away and then get in touch with me here If you definitely do not want to own the machine, Operating Leases should be your focus, but don’t discount the other choices. Drop us a line, and we can take you through the pros and cons to make sure.

EKF Finance

EKF Denmark’s Export Credit Agency. The deal is 15% deposit 85% in twelve months. The current interest is 4.8%, and the setup cost is €1611. There is also an option for the repayment to be made in 24 months. Benefit – The machine can earn money before you need to pay off the final payment.

Great for:

  • Sweating the machine to earn the money to pay off the final payment
  • Payback period normally between 4 and 8 months

Hire Purchase

Hire Purchase is a business sense is not dissimilar to HP you may have entered into for your vehicle.

To Hire Purchase one of our machines you agree to buy the machine at the end of an agreed period, and part paying in the interim. You will own the machine once you have made the final payment.

An upside to HP is that because you will own the asset, there are write-offs which can be applied to your accounts which could be beneficial. On the downside, VAT will be payable at the full purchase price (and is normally required to be covered by a funder).

Great for:

  • People who want to own the machine
  • Low fixed initial payments (VAT free)
  • Payments can be offset against company profits

Finance Lease

With a finance lease, you have all the benefits of ownership without the downside.

In effect, you share the asset with the funder. They will buy the asset for you and you will use it like it’s your own. At the end of the lease period, you either agree to continue the lease or the machine is sold where you share in the profits from the sale.

The machine will be part of your books and accounts enabling you to obtain tax and ownership benefits.

Great for:

  • People who want to own the machine
  • Low initial outlay
  • Payments can be offset against company profits

Operating Lease

Operating leases effectively enable you to borrow the machine from a funder for a shorter period of time than is usual with a finance lease or HP. The arrangements also enable seasonal payment terms which is ideal for construction businesses who tend to have a slower winter period.
With no or minimal upfront costs, ongoing monthly costs tend to be higher than other types of financing but offer flexibility and no ownership responsibilities (but we know you’d treat someone else’s property as your own).

Great for:

  • Flexibility
  • Shorter-term commitments
  • No initial outlay

Alternative options:

Existing facilities

Some clients already have finance packages in place and choose to use this rather than opening new agreements. It is worth checking whether that is an option for you.

Business loan

This may seem like a strange option as it doesn’t carry the some of the benefits of leasing like capital allowances but it does enable you to own the vehicle from day 1 with much greater flexibility to repay the borrowings when cashflow allows.

The big downside with lease arrangements is that because the payments are modest, you are less inclined to pay them off quicker. With a business loan, there will be options to repay early and save on interest costs. This type of finance can be more cost-effective for that reason!

Summary

In summary, there are lots of ways you can finance your Fibo intercom machine and it’s important to consider all of your options.

Why not use me, Fibo Intercon’s expert to discuss your options and raise the right finance to purchase a great machine.

Text or call me on + (0) 7818 452 505

Russell Green