Why Standard Lenders Decline
Most asset lenders use a simple model: advance up to 80% of the auction value of the asset, priced using published residual tables. If the asset doesn't appear in those tables - or its bespoke specification makes it hard to value - they decline.
Demolition rigs with high-reach booms, grab lorries with custom bodywork, and purpose-built crushing and screening plants all fall into this category.
How Specialist Lenders Assess Bespoke Plant
Specialist lenders shift the emphasis from asset value to operator quality. They assess: the business's trading history and financial accounts, the operator's project pipeline and contracts, insurance and licences specific to the asset type, and the total exposure relative to the business's turnover.
A groundworks company with £3m annual turnover, clean accounts and a full order book can typically fund a £300,000 specialist crusher even if the auction value is uncertain.
What You Need to Provide
Most specialist lenders require: 2 years of audited or management accounts, details of current contracts and pipeline, asset description (manufacturer, specification, use), and insurance confirmation.
For assets over £500,000 or with more than one decision-maker, a brief business overview helps.
How Long Does It Take?
Standard tracked excavators and tippers: 24-48 hours from initial enquiry to formal offer. Specialist and bespoke plant: typically 5-10 working days, depending on lender credit committee schedule and completeness of information provided.