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. They must accommodate frequent changes to legislation by acquiring the right equipment; thereby meeting 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.
If you’re looking to invest in new or used equipment for your business, then using asset finance can help make it more affordable.
What is construction asset finance?
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 the construction 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. Our facilities help you 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. Asset finance is ensuring that your business can access the equipment you need, when you need it.
Asset finance can be used to purchase the technology equipment required to increase productivity and embrace digitisation.
The benefits of construction asset finance
Asset finance offers numerous benefits for the construction sector, helping businesses access the essential equipment they need. At White Oak UK, these benefits are enhanced further with tailored solutions designed to support your growth:
- Improved cash flow. Spreading repayments helps preserve cash flow, enabling construction businesses to allocate funds to other operational needs.
- Access to new equipment. Construction projects often require cutting-edge machinery, which asset finance helps acquire efficiently.
- Reduced upfront costs. Businesses can avoid large capital outlays, making it easier to budget for equipment upgrades and investments.
- Easier approval process. Asset finance can be more accessible than traditional loans, especially for businesses with evolving financial profiles.
- Quick, straightforward application. We simplify the process, cutting out unnecessary delays.
- Always speak to the same person. You’ll get a dedicated point of contact who understands your business and needs.
- Eliminate slow decision times. Our quick approval process ensures faster access to funding.
- Minimal deposit required. Reducing upfront costs makes financing more accessible and manageable.
Talk to us today to discuss your options.
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