Asset Finance unlocks new tech investment and delivers productivity growth for Midlands’ steel firm26-Feb-2018
For firms tempted by the latest technology at MACH 2018, Asset Finance from Lloyds Bank can help unlock investment and make purchasing new machinery, plant and equipment achievable.
MACH 2018 showcases the finest future technology available to help businesses compete with global competitors and boost productivity and profitability. But for many firms, investing in the very latest designs can seem out of reach, despite the potential for high return on investment in the longer-term.
Helping businesses secure their goals
That’s where Asset Finance can offer a workable solution. With £1.5bn of Asset Finance funding available for UK manufacturers, Lloyds Bank can help businesses unlock investment in a wide range of new equipment. Whether your business goals are to grow at home or abroad, enhance productivity or move into new market segments, Asset Finance offers a number of benefits compared to more traditional funding methods.
- Allows access to new equipment quickly, with decisions usually given in 24 hours
- Protects working capital by avoiding large upfront costs associated with paying cash for an asset
- Repayments can be structured over the useful life of the asset
- Allows asset purchase without compromising cash reserves
- Flexible choice of supplier
Supporting working capital
Asset Finance is a funding solution that’s worked particularly well for Wolverhampton-based steel manufacturer, Steelway Fensecure. Founded in 1928, the firm provides high-quality steel fabrications to a variety of sectors, including the UK’s nuclear, water, gas, rail, and defence industries.
Facing growing competition in an increasingly crowded market, Steelway was keen to enhance its product offering and capacity. The challenge was not to compromise the company’s existing working capital. The company turned to its long-term banking partner, Lloyds Bank, for support on funding the purchase of a laser steel-cutting machine and new press brake.
“Our long-standing relationship with Steelway Fensecure and their position as experts in their field mean that we were delighted to extend our support for their latest plans,” says Mike Middleton, relationship director for SME manufacturing at Lloyds Bank Commercial Banking. “Asset Finance was an obvious funding method to support the purchase of the new equipment, allowing payments to be spread over an agreed term.”
Automation drives enhanced productivity
With a £500,000 Asset Finance facility in place, Steelway was able to quickly and easily bring the new machinery on line and the business is already seeing the benefits. With the laser cutting machine fully automated, production can continue outside of normal business hours, increasing the company’s capacity by at least 30 per cent. It’s also driving innovation through the creation of new products.
Dan Houghton, managing director at Steelway Fensecure, is delighted with how things have worked out: “The new machinery not only increases our capacity but also allows us to expand our product offering, making us more competitive in a crowded market.”
To find out more about our £1.5bn Asset Finance funding for manufacturers and how it can help support your business, visit the Lloyds Bank stand (H20-242) at MACH 2018, or visit our website.
*£1.5 billion relates to Asset Finance funding between January – December 2018.
The provision of credit or leasing services is subject to your meeting our Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.