Finance For New Plant Hire Business

Finance for New Plant Hire Businesses

Starting a plant hire business can be an exciting and profitable venture, but acquiring the right machinery and equipment requires a significant upfront investment. For new businesses with limited capital, securing plant hire finance is essential to ensure you have the necessary tools to offer competitive services and scale your operations. At First Oak Capital, we specialise in providing flexible and competitive finance solutions tailored to the unique needs of new plant hire businesses.

In this guide, we’ll explore the various finance options available for new plant hire companies, and how First Oak Capital can help you secure the equipment you need to get started.

Why Finance is Essential for New Plant Hire Businesses

Plant hire businesses rely on expensive machinery, such as excavators, loaders, cranes, and more. These assets are critical to the day-to-day operations of your business, but purchasing them outright can be a significant financial strain for new companies. Plant hire finance offers a solution by allowing you to spread the cost of acquiring equipment over time, easing the burden on your cash flow.

By financing your plant hire equipment through First Oak Capital, you can preserve working capital for other essential business activities, such as hiring staff, marketing, or expanding your client base. Additionally, financing allows you to acquire the latest machinery, which can improve efficiency and help you stay competitive in the market.

Types of Plant Hire Finance Options

At First Oak Capital, we offer a range of finance options to suit the needs of new plant hire businesses. Each option has its own benefits, so it’s important to choose the one that best aligns with your business’s financial situation and growth strategy.

1. Hire Purchase (HP)

Hire Purchase is one of the most popular financing options for new plant hire businesses. With HP, you make an initial deposit and then pay off the cost of the equipment in regular instalments over an agreed term. At the end of the agreement, ownership of the machinery transfers to your business.

• Pros: You own the equipment at the end of the term, fixed monthly payments make budgeting easier, and the machinery is an asset on your balance sheet.
• Cons: Requires an initial deposit, and the total cost can be higher than leasing due to interest payments.

Hire Purchase is ideal for businesses that want to own their equipment outright and build long-term assets. First Oak Capital can help structure HP agreements that are tailored to your business’s cash flow, ensuring that repayments are manageable as your company grows.

2. Finance Lease

A finance lease is a flexible option that allows you to use the equipment for a set period while making regular payments. At the end of the lease, you typically have the option to sell the equipment to a third party and keep most of the proceeds, or continue leasing it at a nominal cost.

• Pros: No large upfront payment, and lease payments can often be tax-deductible.
• Cons: You don’t own the machinery unless you arrange to buy it at the end, and the total cost may exceed purchasing the equipment outright.

With a finance lease from First Oak Capital, you can enjoy the flexibility of using the latest machinery without the immediate financial commitment of ownership, making it easier to upgrade equipment as your business expands.

3. Operating Lease

An operating lease is a great option for businesses that want to use machinery for a specific period without the responsibility of ownership. You make regular payments for the use of the equipment, and at the end of the lease term, the machinery is returned to the leasing company.

• Pros: Lower monthly payments compared to Hire Purchase, and maintenance may be included in the lease.
• Cons: You don’t own the equipment at the end of the term, and you may face usage restrictions or penalties for excessive wear and tear.

First Oak Capital offers operating lease solutions that allow new plant hire businesses to get started with minimal upfront investment and predictable monthly payments, helping you keep costs under control.

4. Business Loan for Plant Hire Finance

A business loan can be used to finance the purchase of plant hire equipment outright. This option allows you to borrow a lump sum from a lender, purchase the equipment, and then repay the loan over time with interest.

• Pros: You own the equipment immediately, and there are no restrictions on its use.
• Cons: Requires a strong credit history, and repayment terms can vary significantly.

At First Oak Capital, we work closely with you to secure the best loan terms available, helping you finance the equipment you need while maintaining financial flexibility.

5. Contract Hire

Contract hire is a long-term rental agreement where you pay a fixed monthly fee for the use of the equipment. Maintenance and servicing are often included, making it an attractive option for businesses looking for predictable costs without the responsibility of ownership.

• Pros: Maintenance and servicing are often included, and you have fixed payments, which help with budgeting.
• Cons: You don’t own the equipment, and there may be restrictions on how you use it.

First Oak Capital offers contract hire agreements that provide new plant hire businesses with access to top-quality equipment at a fixed monthly cost, making it easier to manage cash flow and avoid unexpected repair expenses.

Why Choose First Oak Capital for Plant Hire Finance?

As a trusted finance broker with decades of experience, First Oak Capital is committed to supporting new plant hire businesses with flexible finance solutions that suit their specific needs. We understand the challenges that new companies face when it comes to securing finance, particularly when dealing with expensive machinery.

By working with First Oak Capital, you can expect:

• Tailored Finance Options: We offer a range of finance products, from hire purchase to leasing, ensuring that you can find a solution that fits your business’s needs.
• Competitive Rates: Our industry connections allow us to secure some of the best finance rates available, helping you keep costs manageable.
• Support for New Businesses: We understand that new businesses may have limited credit history, and we’re here to help you secure finance, even if you’re just starting out.
• Expert Guidance: Our team has over 60 years of combined experience in commercial finance. We work closely with you to understand your business and recommend the best finance options for your growth.

How to Secure Plant Hire Finance

Securing finance as a new plant hire business can be challenging, but with the right approach, it’s certainly achievable. Here are a few tips to improve your chances of getting approved:

1. Prepare a Solid Business Plan: Lenders will want to see how the equipment will be used and how it will generate revenue for your business. A clear and detailed business plan can help demonstrate your business’s potential.
2. Demonstrate Revenue Potential: Even if your business is new, showing contracts or signed agreements can help convince lenders that you’re a good candidate for finance.
3. Work with a Specialist Broker: By partnering with First Oak Capital, you’ll benefit from our expertise in the plant hire industry and our ability to secure the best finance options available.

Conclusion

Starting a plant hire business can be a rewarding and profitable venture, but it requires significant investment in machinery and equipment. First Oak Capital offers a variety of finance options designed specifically for new plant hire businesses, helping you spread the cost of acquiring equipment while preserving your cash flow for other critical areas of your business.

Whether you’re looking for hire purchase, leasing, or contract hire, First Oak Capital is here to support you with flexible finance solutions that will enable your business to thrive. Contact us today to learn more about our finance options and how we can help your new plant hire business succeed. It is also worth considering joining the construction plant-hire association.