Key Finance recently worked with a leading U.K. aerospace manufacturer. One of the more bespoke proposals, this case study looks at the funding for a new state-of-the-art riveting machine.
There was a requirement to spread the cost of the investment over time.
- The equipment was from an international supplier.
- Our client had paid 40% in stage payments to the supplier towards the equipment.
- The equipment was crucial for our client to maintain existing projects they had recently won, as well as to facilitate further expansion whilst maintaining productivity and efficiency for the factory.
- Key Finance reimbursed the stage payments that the customer had already made while paying out the remaining 3 stage payments to the supplier.
- Our solution allowed our client to package the benefits of two lease structures into one hybrid agreement, a capability that is unique within the market.
- The solution not only improved working capital by putting the investment back into their pocket but allowed them to spread the remaining cost of this investment over a 3 year period.
This transaction was undertaken as an unregulated Sale and Hire Purchase back for the stage-payments that had been made and a Hire Purchase for the outstanding payments.
“It was a pleasure working with Key, the decisive factor was knowing that we could get 100% of our project funded including all our soft costs.” - Finance Director
£480K ALREADY INVESTED. £720K TO BE INVESTED.
100% OF THE INCURRED COST PAID BACK TO OUR CLIENT.
100% OF THE OUTSTANDING INVESTMENT PAID TO THE SUPPLIER.
£1.2M TOTAL FUNDED.
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