Summary
The customer is one of the leading wind turbine suppliers, installers and refurbishing companies in the UK and Ireland.
A £600,000 hire purchase agreement was secured with Close Brothers Commercial Finance in autumn 2014, which enabled the purchase of a crane to support business operations.
Challenge
They had experienced significant growth over the past five years. It was costing approximately £8,000 a month to hire a crane to aid the build and maintenance of wind turbines, which wasn't a long-term solution. The company owner dedicated time to source a crane of their own, but without having the money readily available, sought guidance from his local finance advisor.
Solution
Asset finance was recommended as the most appropriate solution, given the nature and urgency of the purchase. The owner was accustomed to asset finance having taken advantage of this type of funding for other pieces of equipment over the years. He was introduced to Close Brothers and the range of products that were available. A £600,000 hire purchase agreement was chosen as it meant that the business could spread the cost over the life of the asset. In addition, they would be able to claim capital allowances for the purchase, reducing any potential tax liability for the current financial year.
Result
£600,000 was used to purchase a 2012 130-ton Grove crane which is now a fantastic addition to the business. They are using the crane to continue to work closely with landowners and farmers, installing on average, one turbine per week and are on track to complete a further 70 installations that are scheduled over the next 12 months.
