In April, Close Brothers exhibited at MACH 2018, the biggest event in the UK and Ireland showcasing advanced engineering and manufacturing technology. Our financial experts were pleased to have the opportunity to meet so many growing engineering companies and chat about the positive outlook in the sector. Throughout the week, one topic came up repeatedly in our discussions with SMEs. While the sector is confident that growth will continue, many individual businesses are considering the practical factors that may impede their development. With issues such as rising energy costs and rapid technological advances affecting the industry, how can engineering businesses find sustainable ways to finance increased demands on their services?

Refinancing solutions

For many engineering firms, asset finance can be instrumental in helping them to survive and thrive. While asset-rich engineering businesses are often dependent on the equipment they use daily, they may also want to access the equity tied up in them. Refinancing can provide a way to do this. Refinancing offers a highly flexible and sustainable funding opportunity for businesses. We value the asset, ‘purchase’ it from you, and finance it back over an agreed period. Whether you originally own the equipment, or need to restructure another finance agreement, you will own the asset at the end of the repayment period. A tailored hire purchase, lease or refinance package gives engineering businesses a way to spread the cost of new machinery. Unlike traditional bank loans and overdrafts, lending is secured against the value of the borrower’s assets, giving companies the opportunity to raise working capital quickly at a competitive business finance rate.

Investing in growing businesses

In Ireland, Close Brothers recently helped an expanding engineering firm invest in new equipment using a refinancing plan. The business, which had a growing client base, wanted access to additional working capital to support business growth. Close Brothers assessed the company’s needs and goals. We arranged a meeting so that we could understand what day-to-day challenges the company faced and what they wanted a funding solution to offer. Using our experience funding the engineering industry, we were able to share helpful advice about our asset finance products. As a result, the company secured a Sales and Hire Purchase Back agreement which suited its business model. The agreement enabled it to advance an order for a new production line, using the additional cash to negotiate the best possible deal from suppliers. To support the business, a reduced monthly repayment rate was agreed for the first six months, after which instalments were calculated in line with the income generated by the new asset. This allowed the firm to become more efficient without expending working capital, and at the end of the refinance term, the client will own the equipment.

Why choose Close Brothers

At Close Brothers Commercial Finance, we’re here to help. We’ll work with you to understand your business needs and find a finance solution which works for you. Whether you are focused on finding an affordable way to purchase new equipment or want to expand, we can help you. Our team of specialists have extensive knowledge of alternative finance solutions and significant experience working with customers in the engineering sector. Close Brothers has offices in Dublin, Cork, Galway and Belfast. Contact us today to find out more about our Asset Based Lending solutions: call +35316994387 or visit https://www.closecommercialfinance.ie/ Warning: You may have to pay charges if you repay early, in full or in part, a fixed-rate credit facility.