Funding a site purchase without disrupting cash flow
Industry: Transport
Product: Sale and Hire Purchase Back
Facility size: €4.5M
The client
Operating at the heart of Ireland’s infrastructure and construction supply chain, this established haulage and bulk excavation provider delivers transport and site services for projects of all sizes.
The business depends on reliable vehicles and being able to respond quickly for their clients, who operate across haulage, warehousing and storage and often have specialist requirements.
Equipment availability is central to day-to-day performance. The company runs a large, well-maintained fleet, including over 100 trucks and more than 50 trailers, alongside additional machines within its plant hire operation. This scale allows them to deliver efficiently across multiple projects while maintaining the quality and responsiveness customers expect.
A long-standing customer of Close Brothers Commercial Finance since 2017, the firm has continued to invest in its operational capability and long-term growth.
The challenge
The business had identified an opportunity to buy a 6.2-acre site in a prime location. The move was designed to bring operations closer to the company’s core working area and reduce the ongoing costs associated with travel time, fuel usage and renting a location that was no longer fit for purpose. However, securing the plot required a significant upfront commitment.
Like many fleet-heavy transport operators, substantial value was tied up in owned vehicles and plant. The priority was to unlock capital quickly to complete the purchase, without putting pressure on day-to-day cash flow, and within a set timeframe.
The solution
Close Brothers Commercial Finance structured a €4.5 million Sale and Hire Purchase (HP) back facility, enabling the client to refinance unencumbered assets and release funding to complete the site acquisition, while keeping the essential tools of the trade in daily use.
With a tight timeline, moving quickly was key. With experienced local experts and an in-depth understanding of the sector, Close Brothers responded promptly, swiftly assessing the fleets value and structuring a suitable funding solution to meet their needs when timing was crucial.
Asset finance can support firms to acquire or refinance equipment by spreading costs over an agreed period. In this case, the solution focused on refinancing, a way to unlock funds tied up in assets on the balance sheet quickly.
Sale and HP back is where a specialist funder buys assets a business already owns and hires it back under hire purchase. This provides a cash injection upfront, allowing the company to keep using these resources without interruption, and ownership is transferred back at the end of the agreement.
The facility was secured against over 60 items, including a strong mix of artic and tipper trucks, excavators and other construction tools. By leveraging the value of its existing fleet, the firm was able to secure the new location, while maintaining operational stability.
The result
For businesses in the transport sector, releasing capital from existing equipment can create space to act on strategic opportunities without disrupting trading. For this client, the new site them closer to its central operating area, supporting the growth plans over the long term.
The business expects significant annual savings driven by reduced fuel usage and lower wage-related travel costs. Taken together, these improvements are expected to deliver savings of over €700,000 per year, helping to lower ongoing overheads and improve operational efficiency.
Just as importantly, the facility enabled the purchase while allowing the company to retain full use of the vehicles, plant and machinery that underpin service delivery. With a more efficient cost base and operations running from a better-located site, they are well placed to plan confidently for the next phase of investment.
