7th January 2021 – The Advantages of Scaffolding Finance
There are huge challenges that new scaffolding companies now face when it comes to identifying the right time to purchase or lease their scaffolding equipment. Many new scaffolding businesses require finance in order to meet the project requirements of their customers, but financing scaffolding can wrongly be associated with typically high rates. I can confirm this isn’t the case.
Like any asset finance, businesses that can show a promising set of accounts, consistent positive balances in their bank statements and a strong business model, amongst many other factors, will be able to get access to low rates. Scaffolding equipment is regarded as a ‘soft’ asset, meaning it doesn’t bleed oil, it doesn’t have wheels and generally doesn’t have the best residual value. Therefore, rates start higher than a vehicle or a piece of plant machinery.
Many scaffolding companies will turn to renting their scaffolding equipment from their chosen supplier because they need flexibility on their projects, but renting directly through your supplier can be extremely expensive compared to leasing the scaffolding through a bank. Not only does leasing cut your rental costs and give you flexibility, it means you can own the equipment at the end of the lease. Ultimately saving business cash flow and providing your business with a tax efficient finance product.
Generally if you have a project that is going to last over 12 weeks, leasing your scaffolding really is the way forward.
Now that we see ourselves in a pandemic and national lockdown, many scaffolding businesses will struggle. Pronto Business Finance have a large variety of finance products, ready to help you through the year in the most efficient way possible.
The Coronavirus Business Interruption Loan Scheme is in place to help SME’s through the pandemic. Funding is 80% backed by the government and the amount you can borrow is calculated from your turnover. Generally businesses can borrow up to 25% of turnover as of your 2019 accounts.
Asset finance provides a huge amount of flexibility to any firm, in terms of monthly repayments and cash flow management.
Buy The Best!
Asset finance allows you to buy only the best equipment or machinery available.
Huge cash outlays can cause large risks later down the line, asset finance is there to protect your cash and give your business flexibility.
Many suppliers work with finance companies, providing customers with the best options available.
Rotamead – https://rotamead.co.uk
Generation – https://generationscaffolding.com
Caspian – https://caspiangroup.co.uk
Layher – https://layher.co.uk
Actavo – https://actavo.com
If you would like to know more about how we can help you and your business, feel free to get in touch with our scaffolding finance specialist directly on 07914 672149 or email@example.com
Alternatively, you can contact the Pronto office on 01604 201510.
Have you checked out our Scaffolding Finance page? – https://prontobusinessfinance.co.uk/scaffolding
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