Why Standard Lenders Decline Off-Highway Plant
Three reasons: the asset cannot be road-registered or inspected on public roads; published residual value tables don't cover it; and the secondary market is thin - the number of buyers for a 90t rigid dump truck is small.
Standard lenders use a formula: advance up to X% of the published residual value. If there is no published residual value, they stop.
How Specialist Lenders Approach It
Specialist lenders shift to a business-based model. They look at: the quarry's mineral rights and extraction licence, the operator's accounts and trading history (typically 3+ years), the asset's OEM specification and documented service history, and the quarry's haul cycle and daily throughput.
A well-run quarry with solid accounts, a clear extraction plan and documented plant maintenance can fund a £1.2m rigid dump truck with a specialist lender in 7-10 working days.
Documentation Required
- Minimum: 2-3 years audited accounts, asset OEM specification sheet, current machine hours and PM service records.
- For large assets (over £500,000): a brief quarry plan (extraction licence, reserves estimate, annual tonnage), existing plant inventory, and asset insurance confirmation.
- For very large assets (over £1m): a formal asset valuation by a recognised quarrying industry specialist may be required.
What If I'm a New Operator?
New quarry operators (less than 3 years trading) face the steepest challenge. Options include: a higher deposit (30-40% rather than the standard 10-20%), personal guarantee from the director, a debenture over the business, or a cross-charge against another asset. Start with a conversation - we assess what's possible before approaching lenders.