Concrete Batching Plant Finance for a Readymix Operator in the North West
£420,000 · 7 years · 6.95% fixed. A readymix concrete operator in the North West was establishing a second batching plant to serve a growing industrial estate development project that required guaranteed concrete supply.
The Client
Readymix concrete operator in the North West
The Challenge
A readymix concrete operator in the North West was establishing a second batching plant to serve a growing industrial estate development project that required guaranteed concrete supply. The batching plant - static equipment - required planning permission and a concrete pad, which were in place. Most lenders class a static batching plant as real property rather than plant, complicating finance.
Our Solution
Doulton identified a specialist plant finance lender who assessed the batching plant as moveable plant under a finance lease structure, regardless of its static installation. The industrial estate supply contract provided strong income visibility. The lender required a decommissioning plan confirming the plant could be relocated if needed.
The Outcome
Batching plant operational and supplying the industrial estate development. Contract revenue in year one: £840,000. The second plant has allowed the business to service both the new contract and its existing customer base without capacity conflict. Key highlights: Static batching plant treated as moveable plant - specialist lender; Industrial estate supply contract provided income visibility; £840k contract revenue in year one - capacity freed for existing.
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