Refinancing a construction business sometimes needs to be done quickly, so it helps if your finance team can go that extra mile to help secure the deal.
In this case, a long established plant hire business had expanded rapidly with the help of debt finance over the last ten years. However, despite substantial revenue growth to over £20m, the servicing requirement was limiting its ability to expand further.
PMD were referred to the business to help restructure the business’ lease commitments and extract equity from its hire fleet, reducing monthly commitments and releasing capital back into the business.
Our initial asset review identified 85 different assets, including excavators, tippers, bulldozers and other plant which were suitable for refinancing. We then reviewed all the customers current live agreements, working out current settlement figures as well as getting third party valuations.
Armed with this information, PMD approached 14 different lenders and within 24 hours we were able to provide the customer with three different options to reduce monthly payments by £55,000 and release £400,000 equity back onto the business. Using a phased drawdown, the new repayments could be spread across the month to balance cashflow too. Result.
By listening to our customer and delivering what was required with a fast acting team, the customer was absolutely delighted with the outcome:
“The refinance facility provided by PMD has reduced our overheads significantly and released some much needed cash into the business to support our continued growth. Restructuring funding over 70+ assets and settling of agreements with 14 lenders wasn’t easy, but PMD managed the whole process for us from start to finish” – Dave, Director
With access to over 50 lenders, our experienced team were able to provide the requisite speed, flexibility, ease of delivery, and competitive pricing needed for a successful outcome.