Key Finance recently worked with a leading UK aerospace manufacturer. One of our more bespoke proposals, this case study looks at the funding for a new state-of-the-art Gemcor riveting machine.
The Challenge - 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 were able to refinance the stage payments that the customer had already made while paying out the remaining 3 stage payments to the supplier.
- Our hybrid solution consisted of a Sale and Hire Purchase for the already paid stage payments and a Hire Purchase for the outstanding agreements.
- The solution not only improved working capital by putting the investment back into their pocket, but allowed them to spread the remaining cost of the investment over a 3 year period.
- 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.
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.” Client 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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