Our client, a long established waste recycling business in Yorkshire, was looking to improve its ability to recycle more of the waste it was taking in through investment in a new £2.5M sorting line at their 25 acre processing site.
This was a significant investment, but one which would see more materials segregated and therefore available for onward sale or use in waste to energy plants. This would create new income lines via the different waste streams and also save on onward landfill charges where materials currently couldn’t be recycled.
We had several meetings on site with the businesses Management Team in order to understand the logistics of the process as well as the finances that sat behind it. That insight saw us able to create a compelling proposal based around monetary payback and asset security which we then introduced to one of our Asset Financier partners.
As specialist lenders, they were able to understand the benefits to the business, whilst also understanding the security in the assets, and a tailored Hire Purchase facility was negotiated to facilitate the purchase of the new equipment.
This facility was structured in order that the business invested a 5% + VAT deposit and funded over 7 years to match the expected useful working life of the plant. The VAT amount due of £500,000 was also deferred in order that the business only paid that part of the deposit to the financier once it had been claimed back in their quarterly HMRC VAT return, thus averting any cash hole until that was reimbursed. As the supplier & manufacturer were based in Germany, we also arranged payment to be made in Euro’s and handled the foreign exchange rate documentation for our client.
Now installed and working every day, the new line has seen a material new income line created for the business and increased its profit margins….as well as helping the environment !
Nothing was too much trouble, we were supported personally, every step of the way
