Established in 2013, Asset Funding Solutions Ltd (AFS) is a Finance Brokerage specifying in corporate finance. The company is built on over 80 years of asset finance knowledge, made up between three directors.
Over the years, they have built established long-lasting relationships with many major lending institutions, as a result they are regarded as one of the most knowledgeable finance brokerages in the UK.
The customer is a family-run Forestry Contracting business and was established in 2009 by two brothers, with a combined industry experience of over forty years.
Investment leads to further contracts
The customer has recently been contracted for a 33-tonne job for a world leading manufacturer and distributor of wood-based panels and required the purchase of new machinery. The job is expected to take approximately eight months to complete.
The new machinery needed to complete the job is expensive, however the customer was assured of more work to follow, meaning the purchase of the machinery is a good investment and can be used on further contracts.
A Hire Purchase solution
The machinery needed to complete the job was a harvester, costing just short of £300,000.00. After meeting with Close Brothers Business Finance, the customer made the decision to take finance out on a Hire Purchase agreement over five years with a three-month VAT deferral, which means by the end of the agreement once the option to purchase fee has been paid the customer will then own the asset.
The overall balance financed was £319,000.00 over five years with monthly repayments of £5200.00 which will be comfortably serviced by the ongoing workload in front of them.
Due to the customer now having another machine in operation, sales in March 2019 increased by 12% on the previous year which resulted in the business making another satisfactory profit which was retained in the business and increased the capital account to more than £500,000.00. The partners confidently expect that there will be another increase to sales in 2020, given the new contract and the assurance that more work will follow.
Mark Musselwhite, Asset Funding Solutions said: “The funding of the new machine will assist our customer with the substantial amount of work going forward on new contracts. Close Brothers were extremely supportive throughout the whole process and provided the ideal finance solution.”