Machinery & Plant
Can you finance machinery and plant?
More businesses than ever before are turning to asset finance in order to fund new business assets, including plant and machinery.
How much is plant and machinery finance worth?
In fact, data shows that the new asset finance business in the UK has grown for the last 24 months in a row. Spending on a series of asset classes is also up year-on-year.
According to the Finance and Leasing Association, a total of £28.381 billion worth of asset finance was provided by its members in the 12 months to the end of September 2021, a 12% year-on-year increase. £5.733 billion of the £28.381 billion was allocated to plant and machinery finance within the manufacturing sector, an increase of 11% year on year.
What is financing machinery?
Machinery financing allows businesses to access the funds they require to purchase or lease the machinery they need to operate and grow. This form of finance enables businesses to acquire, upgrade, or lease the machinery they need, fast.
Can you buy machinery on finance?
Finance can be used to purchase any tangible asset, including machinery. Asset finance allows your business to access the plant machinery it needs without paying large amounts of capital upfront.
Not only is it possible to buy machinery on finance but acquiring it this way also offers a number of benefits for businesses, including:
- Improves cash flow
- Tax-efficient
- Access the machinery you need immediately
- Flexible
- Options to upgrade or update
- Easier budgeting
What type of plant finance are available?
There are many different types of planet and machinery financing available, including:
- Equipment leasing
- Finance leasing
- Hire purchase
- Heavy equipment financing
What is equipment leasing?
With this type of plant and machinery finance, the lender buys the asset with the intention of leasing it to you for an agreed fee. At the end of the lease, you can usually choose to upgrade the machinery, extend the lease, pay the remaining balance to buy it, or return it.
What is finance leasing?
This type of machinery and plant finance involves leasing the asset over an agreed period. During the lease period, the full value of the machinery or plant asset will appear on your balance sheet, but the finance company retains ownership of it.
What is hire purchase machinery?
With this type of machinery and plant finance, you buy the asset and then pay for it in instalments., so you can spread the cost. This option is typically for durable machinery that you’ll want to use on a long-term basis.
What is heavy equipment financing?
Heavy equipment and other plant assets can be extremely costly. Heavy equipment financing allows businesses to access the heavy equipment they need, without large-scale investment.
Heavy equipment financing can be used for equipment such as cranes, bulldozers, excavators, and more.
Access the machinery you need with plant and machinery finance from CHG-MERIDIAN
Here at CHG-MERIDIAN, we can help you stay ahead of your competition with tailored asset finance solutions that keep you on top of the latest plant and machinery technologies. To find out more, get in touch today.
Our helpful, professional team is always on hand to answer any of your questions about asset finance.
