Bank cements solid relationship with concrete firm

Building and construction business Aberdeen Concrete is laying the foundations for strong growth after securing a hire purchase funding package from the Bank.

The Bank’s Asset Finance team put together a cash flow-friendly deal, enabling the business to buy a new Mercedes AROCS truck chassis and volumetric concrete dispensing machine.

The new equipment substantially enhances Aberdeen Concrete’s service, which uses modern volumetric mixers to deliver specific types and amounts of concrete needed at customer sites.

This removes longstanding problems related to over or under ordering, while minimising waste. In addition, the cost of delivery is reduced because the truck does not have to return to base after every drop off – a cost saving that is passed direct to the customer.

Chris Graham, who owns the business with wife Kara, commented: “Being able to rely on Steve’s expertise and support, and the way repayments were tailored to benefit the business cash flow, was invaluable.”

Steve Paterson, Asset Finance Sales Manager at the Bank said: “Chris has a couple of older volumetric dispensers, so to purchase a brand new one was a massive commitment. We were able to make the funding available very quickly and being flexible in our approach to generate cash flow benefits for the customer was essential.

“This involved establishing that the asset will retain a significant proportion of its value at the end of the five-year term. We structured the deal so that we will take a large final (balloon) payment at the end of the agreement which keeps the monthly instalment as low as possible, helping to maintain his cash flow for other business users.

"In addition, a percentage of the VAT that would normally have been taken as part of the deposit was deferred until after Chris reclaimed the VAT, which will also significantly help his cash flow.”

Steve is confident that there is potential for similar hire purchase deals as Aberdeen Concrete continues to expand. He added “The feedback we have received from Chris has been positive and I am hopeful that we will be able to complete further asset finance deals to facilitate the ongoing expansion of Aberdeen Concrete.”

The value of any tax benefits to you depends on your individual circumstances, the Law and Her Majesty's Revenue & Customs (HMRC) practice which is subject to change.

This is a case study and not intended as advice. Lending subject to status & eligibility. With Hire Purchase the ownership of the asset passes to you at the end of the term once all payments and the completion fee is paid.