This has not been the greatest run of months for those working in the construction industry. There have been storms, winds and floods to cope with and just as the weather was starting to turn more favourable the sweeping effects of the Coronavirus pandemic have started to take hold.

One such firm was a well-established civil engineering groundworks company, introduced to Praetura Asset Finance by their business finance adviser.

This was a business that worked with a variety of construction companies on multiple projects, but due to the appalling weather conditions endured since October last year, many invoices had had to be delayed until the builders were able to catch up with the groundwork they had done.

Consequently, cash flow reserves were strained and they were looking at different ways to bolster them. With the onset of the effects of Coronavirus beginning to be felt throughout the UK, this need took on an increased level of urgency.

Making the most of their assets

Even though refinance is becoming an increasingly popular funding option for SMEs, there are many that still don’t know that releasing the value of equity tied up in their business’ vehicles and equipment and turning that into working capital is an option.

This particular company had a huge fleet including excavators, bulldozers, dump trucks, telehandlers and rollers. A portion of these assets was to provide the answer to their cash flow crisis.

Through a refinance agreement, Praetura Asset Finance were able to unlock the value tied in their assets and turn this into cold hard cash for their business to be able to use right away. Taking the equity from 19 assets, we were able to provide a Refinance Relief funding package of £500,000.

Overcoming lockdown obstacles

This deal was not without its challenges. The day before the scheduled site-inspections of the assets, new guidelines regarding the restrictions on movements throughout the country were put in place.

As asset inspections now could not be done in person, we had to quickly think of other ways to make the deal happen. So, we accepted video footage from the client and were given access to an equipment GPS tracker to confirm locations.

The customer also chose to take advantage of a 50% reduction in payments for the first three months, which is one of the new options that Praetura Asset Finance can offer on refinance cases* to help businesses during these uncertain times.

 

Find out more

We are proud of the reputation that the team at PAF have built over the years, particularly in the field of asset refinance. That knowledge is available to you to draw on. Should you want to know more, please don’t hesitate to get in touch by calling 0333 323 7830 or emailing sales@praeturaaf.com.

 

*If the 50% three month option is taken, subsequent monthly payments from month four will increase (on a pro-rata basis, unless agreed otherwise) to ensure the full amounts are paid over the full term of the agreement. This offer is currently applicable to all refinance arrangements going live from 17 March – 30 June 2020.