Scaffolding
Financing £280,000 of Scaffolding Stock for a London Council Contractor
How a 36-month hire purchase agreement let a South East scaffolding contractor take on council contracts across Greater London, saving around £3,400 a month compared with hiring.
At a glance
- Sector: Scaffolding contractor
- Location: South East / Greater London
- Assets funded: Scaffold tube, fittings and boards
- Deal size: £280,000
- Structure: 36-month hire purchase, funded direct from the supplier
- Saving: Around £3,400 a month compared with hiring
The client
Our client is a scaffolding contractor based in the South East, working on council contracts across Greater London.
The challenge
The contractor was shortlisted for council contracts across Greater London but lacked sufficient stock of scaffold tubes, fittings and boards to take them on. Buying the materials outright would have severely impacted their cash flow, making it harder to cover transport and other running costs during the contracts.
Our approach
Instead of a large upfront purchase, we arranged for the materials to be financed directly from the supplier through a 36-month hire purchase agreement. That spread the cost over the life of the contracts and left the contractor's cash free for day-to-day running costs.
What we funded
- Equipment: scaffold tube, fittings and boards.
- Deal size: £280,000.
- Structure: 36-month hire purchase, with equipment financed directly from the supplier.
The outcome
The arrangement saves the contractor around £3,400 per month compared with the cost of hiring the equipment. At the end of the term they will own the scaffolding outright, which will improve their margins on future contracts.
Need more stock to take on new contracts?
Whether you're bidding for bigger contracts, replacing worn stock or starting out, we can help you find the right funding structure for tube, fittings, boards and system scaffold. We work with a panel of lenders who understand construction, and we take the time to present your business properly.
Get in touch with Sandringham Business Finance to talk through your plans.
Frequently Asked Questions
Yes. Many UK lenders offer asset finance specifically for construction and scaffolding equipment, including towers, boards, systems, and safety equipment.
In many cases, yes. Some lenders offer finance solutions for startups or new businesses, although deposit requirements may vary.
Yes. Both new and used scaffolding equipment can often be financed depending on the condition, supplier, and value of the assets.
Typical finance terms range from 12 to 60 months, depending on the equipment value and lender criteria.
Some finance agreements may offer tax benefits, particularly hire purchase or leasing agreements. Businesses should speak with their accountant to confirm how finance may affect tax planning.
Frequently Asked Questions
Yes. Grab lorries and tippers are commonly funded through hire purchase or finance lease, and many lenders are comfortable with both new and used vehicles.
Yes. Tracked crushing and screening plant can usually be financed in the same way as other heavy plant, either new from a manufacturer or used from a dealer or private sale.
In many cases, yes. Lenders will look at the age, condition and value of the asset, and terms may be shorter on older equipment.
Terms typically range from 12 to 60 months, depending on the asset, its expected working life and lender criteria.
Usually, yes. A good record on existing agreements often helps, and we can look at your current commitments to structure new funding around them.
Some finance agreements may offer tax benefits, particularly hire purchase or leasing agreements. Businesses should speak with their accountant to confirm how finance may affect tax planning.
Speak to a Business Finance Specialist
If your business is looking for asset finance, equipment finance, or flexible business funding, the team at Sandringham Business Finance is here to help.
Contact Sandringham Business Finance today to discuss your funding requirements and explore the best finance options available for your business.