Enness Facilitates Ambitious Expansion for Specialist Construction Group

• Client: Specialist construction group
• Requirement: Pre-approved finance facility to expand vehicle and machinery fleet
• Facility: £800,000 asset finance facility
• Structure: Two £400,000 facilities for traditional and specialist vehicles
• Term: Five years
• Product: Hire purchase agreements

In this case, Enness was approached by a specialist construction group looking to significantly upscale its operations. The business had identified an opportunity to take on additional, higher-value contracts and diversify its client base, but its existing vehicle fleet was already operating at maximum capacity.

After reviewing the business and its growth plans, it became clear that additional vehicles and machinery would be required to support the targeted expansion. The client needed both traditional assets, including vans and trucks, and more specialist vehicles, meaning a standard asset finance solution would not provide the flexibility required.

Enness therefore structured a bespoke facility designed to scale alongside the business’ order book. We secured an £800,000 pre-approved credit facility, allowing the client to purchase new assets as required rather than having to arrange separate finance after each new contract was secured.

The facility was split into two £400,000 allocations. The first was designated for traditional vehicles and was structured through hire purchase agreements over five years at a flat interest rate. The second £400,000 allocation was available for the acquisition of specialist vehicles, also through five-year hire purchase agreements, with the interest rate set according to the individual asset.

This structure gave the business greater certainty when pursuing new contracts. With finance already approved, the company could move quickly when opportunities arose and acquire the specific vehicles and machinery required to fulfil new projects without having to wait for a new funding application.

The facility also provided greater flexibility around how capital was deployed. Rather than purchasing assets outright and tying up significant amounts of working capital, the business could spread the cost of acquisition over time while preserving cash for other areas of the operation.

For a growing construction business, access to the right equipment can directly influence the type and volume of contracts it is able to undertake. By funding specialist vehicles alongside traditional fleet assets, the client could expand its capabilities, pursue a wider range of projects and support the continued growth of its order book.

The pre-approved facility therefore provided more than simply asset finance. It gave the business a structured source of capital that could be utilised as its requirements developed, allowing it to acquire contract-specific assets at the appropriate point in its trading cycle.

This case demonstrates how a bespoke asset finance structure can help established businesses expand their operational capacity while preserving working capital. Rather than relying on a single standard facility, finance can be structured around the different types of assets a business needs and the timing of its growth plans.

Enness works with a wide network of specialist lenders to structure working capital and corporate finance solutions around the requirements of established businesses. To discuss your requirements, speak to a mortgage specialist.

Risk Warning:
Asset finance and business borrowing carry risks. If you do not meet the terms of a finance facility, the lender may take enforcement action against secured assets. Businesses should ensure that proposed borrowing is affordable and supported by realistic cash flow and repayment plans.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, asset assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.