A family-owned engineering business, turning over £20m and operating in over 40 countries worldwide, builds a wide range of equipment from single machines to bespoke solutions.
Their growth over the years has required investment, whether for acquisitions, equipment purchases or larger commercial premises, and the business recognises the value of using finance to support their ongoing development and profitability.

Product

Asset finance is a staple finance product for businesses in the engineering and manufacturing sectors. However, the structure of an asset finance agreement can differ from lender to lender and understanding how the terms differ is imperative to ensure you get the best deal. FundingRound assesses the detail behind a number of asset finance lenders, identifying new players not known generally in the market.

Service

Our client has chosen to work with FundingRound over a number of years when sourcing asset finance options. Yes, they have an inhouse finance team plus a named bank relationship manager, but they recognise that a specialist knows the market inside out and is able to keep track of the most competitive propositions.

This has never been more important for SMEs as interest rates have increased significantly since 2022. The impact on the asset finance market has been immense, with rates changing on a weekly basis at times, and it’s not just dependent on base rate – swap rates also play a part for many lenders. Keeping track of the most competitive rate, combined with the most beneficial terms, when making a purchase, which can stretch over many months, can be time consuming, and our client prefers to lean on our expertise to ensure the best solution is sourced.

Almond Financial Ltd is a Lincoln-based team of financial advisers, specialising in pensions, investments and mortgages. The company prides itself on helping its clients to thoroughly comprehend their financial situation and the options available to them by eliminating unnecessary complications, offering a bespoke solution and handling finances with integrity and care.

Product

Why would a financial services company ask a commercial finance broker to arrange a loan for two company vehicles? Because it appreciates the expertise that a commercial business broker can bring to a credit arrangement.

Sam Robinson of Almond Financial Ltd first met FUNDING ROUND’s Julia Wilkinson eight years ago when they both worked for the same high street bank. He was impressed with her knowledge of commercial funders and immediately knew that Julia would be the right person to talk to when sourcing credit to buy two Tesla electric cars for the business. Both Sam and Julia share a common approach to business, providing excellent customer service and the best solution to a client’s requirements.

Service

Almond Financial had been quoted an interest rate of 9.9% on a commercial loan with fixed repayment terms. FUNDING ROUND, through its knowledge of business lenders secured a deal, almost immediately, that was half the interest rate and offered with flexible repayment terms. Not only did Julia secure the loan but she dealt directly with the car dealer, ensuring the whole process was speedy and efficient (just like the client’s Tesla car!).

Trent Hire & Sales is an independent, experienced plant and tool hire company, with a proven track record of excellent service and reliability – a one-stop-shop for plant, tool hire and industrial supplies. Based in the heart of Retford, they have been providing industry-leading tool, equipment and plant hire to the Nottinghamshire and Lincolnshire region for over 25 years and have worked hard to achieve their reputation as an honest and trustworthy supplier who are easy to deal with. They know the importance of customer service and loyalty, and by focusing on that, they have been able to develop and maintain long-lasting client relationships. For example, they make sure equipment is delivered when they say it will, and as every tool and piece of equipment is checked on return, everything is in working order for the next customer. These may seem like small things, or even what is expected – but it is surprising how often this doesn’t happen elsewhere!

Product

So why go to a finance broker and not directly to their bank when needing to finance new equipment or use the suppliers finance deal? The directors of Trent Hire & Sales have known Funding Round director, Julia Wilkinson, for some time. Julia had worked with them in a consultative way throughout a management buyout process in 2016 and helped them understand the challenges and opportunities they have with their business finance. She has the same focus on top customer service as they do, and recognising these common values, they trust the advice and service which Julia offers them. So, when it came to purchasing two new Isuzu D Max 4WD vehicles to replace older and less effective vehicles, there was no question who Trent would turn to – Julia!

Service

The Directors needed to get on with running their own business, rather than spend time working out where best to go for finance. Funding Round’s asset finance specialist, Ray Purvis, reviewed the business position alongside the requirement for the purchase. He positioned the information to various challenger banks to attain the best deal for Trent Hire & Sales – quickly sourcing a deal which was more attractive than the supplier’s. But deals don’t always go smoothly! Having agreed a competitive rate, there was a delay in vehicle delivery. Unfortunately, this fell at a time when the banks were changing their rates, meaning a more expensive outcome for Trent Hire & Sales. Ray of Funding Round says, “Whilst bank rates have been low and relatively stable over the past few years, the current climate is showing more volatility. I could have just explained this to Trent, resulting in a more expensive finance deal for them. But that’s not the way we do things in Funding Round – we are all about excellent customer service, and I was sure I could find them a better deal despite changing rates from the banks. So, I did!” Ray was able to identify a different challenger bank who was prepared to retain the lower interest rate despite the later delivery date. A Win Win – new business for the bank and a cheaper finance option for Trent Hire & Sales!