Why Asset Finance is a vital tool for Construction and Manufacturing firms
02 March 2020
Construction and Manufacturing are two of the UK’s largest and most important industries. Together, they employ some 5.1 million people across the UK (construction 2.4 million and manufacturing 2.7 million) contributing 6% and 11% of GVA (Gross Value Added) respectively.
With the two industries’ great scale, however, comes great responsibility – not least in their ability to accommodate frequent changes to legislation by acquiring the right equipment to meet both productivity and environmental goals.
Increasing efficiency and productivity at the right time is essential to any construction or manufacturing business looking to grow, and often the time to invest is when they have the capital available.
In the Manufacturer’s Annual Manufacturing Report 2019, 64% of manufacturing businesses said that they can self-finance investment, meaning 36% cannot. In addition, 33% said they believed banks make borrowing money difficult. Similarly, global advisors, EY have stated that the effect of Carillion’s collapse in 2018, shattered bank confidence in the sector, making it more difficult for construction companies to get the finance that they need.
And as two highly competitive markets, where continued increases in productivity are vital, these aren’t sectors where businesses can afford to stand still.
Consider financing your equipment
If you’re looking to invest in new or used equipment for your business, then using asset finance can help make it more affordable. Asset finance is a type of business finance that enables you to confidently acquire the business assets you need to grow and operate both efficiently and effectively within your sector, by spreading the cost of the outlay, making this investment more manageable.
It applies to equipment, machinery and vehicles and can also be used to release cash that may be tied up in assets already owned, by means of refinance.
Wholly or largely secured on the assets being financed, business asset finance gives you the flexibility to fund your equipment purchases while also avoiding paying out a lump sum.
This means you can spread the cost over an agreed period, helping to protect your cash flow and free up working capital for other areas of your business. Additionally, the government announced an increase in the Annual Investment Allowance (AIA) last year, and connected to this, asset finance is a means of ensuring that your business is able to access the equipment you need, when you need it.
Finally, asset finance can be used to purchase the technology equipment required to increase productivity and embrace digitisation.
Asset Finance from White Oak UK
We’ve cut all the red tape from our business so we can offer you quick, simple and straightforward asset finance to invest in the equipment you need, when you need it.
- Always speak to the same person – someone who understands your business
- Simple application
- Eliminate slow decision times from financial institutions
- Minimal deposit required