£2.4m Asset Finance - Plant & Machinery, Construction Firm
£2.4m asset finance · two excavators + crusher · repayments structured against HS2 contract income.
The Client
Regional groundworks contractor with HS2 subcontract
The Challenge
A regional groundworks contractor needed to acquire two new excavators and a crusher to fulfil a major HS2 subcontract. The bank declined on the grounds of asset age, refusing to consider the new contract income as supporting the lend.
Our Solution
Doulton placed the £2.4m asset finance with a specialist construction equipment lender. Repayments were structured against the HS2 contract income profile rather than the contractor's historical turnover. The new assets themselves provided the primary security.
The Outcome
All three assets delivered and operational on the HS2 subcontract. The contract was fulfilled to programme. Annual revenue from the contract exceeded the asset finance repayment burden by approximately 4x in year one. Key highlights: HS2 contract income recognised as primary repayment source; Specialist construction equipment lender accessed; Annual revenue 4x asset finance repayment in year one.
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