20-Tonne Excavator Finance for a Civil Engineering Contractor
£185,000 · 5 years · 6.90% fixed. A civil engineering contractor in the South West had won a major earthworks contract requiring a 20-tonne excavator with a quick-hitch and multiple bucket attachments.
The Client
Civil engineering contractor in the South West
The Challenge
A civil engineering contractor in the South West had won a major earthworks contract requiring a 20-tonne excavator with a quick-hitch and multiple bucket attachments. His existing plant fleet was leased and fully committed. Purchasing the excavator outright was preferable - the contract was long-term and the machine would remain useful beyond it. His bank offered HP but at an uncompetitive rate.
Our Solution
Doulton accessed the whole-of-market asset finance panel and placed a hire purchase agreement at a rate 1.8% below the bank's offer. The excavator itself served as the primary security. The contract award letter was used to demonstrate the immediate deployment of the asset.
The Outcome
Excavator purchased and deployed on the contract from week one. The HP arrangement means the contractor will own the machine outright at the end of the five-year term. The rate saving versus the bank's offer equates to £8,400 over the term. Key highlights: Rate 1.8% below bank offer - whole-of-market search essential; Contract award letter used to demonstrate immediate deployment; Contractor owns machine outright at end of HP term - asset on.