SWEEPING AWAY THE COMPETITION
For a construction company, obtaining finance to invest in machinery can be one of the most difficult challenges faced. When that machinery is more specialised, it can cause lenders without sector specific knowledge to be wary. Meaning they offer finance at heavily inflated rates, if at all.
Since purchasing its first machine in 1993 Arrowbuild & Civil Engineering has turned to JCB Finance to support when other lenders were reticent. With its extensive knowledge of the construction market, JCB Finance understands Arrowbuild’s business and in the 30 years since the two companies have built a trusted relationship that has led to JCB Finance becoming the company’s preferred lender.
So, when Arrowbuild was ready to invest in a Stock Sweepers road sweeper – which incidentally incorporates a JCB engine - it approached JCB Finance. This latest investment is now the sixth vehicle from Stock Sweepers that the company has purchased through JCB Finance.
Joining Arrowbuild’s JCB fleet of Loadall telescopic handlers, Fastracs, TM320S Telemasters and site dumpers, the new road sweeper will be used to support Arrowbuild’s internal construction company on site cleansing, muck shifting and in-house and road sweeping projects.
A BIG PLUS
With a varied workload that calls for a broad range of machinery and equipment including cars, vans, wagons, plant and agricultural equipment, there is always the risk that not every asset acquisition works out.
For Arrowbuild Owner, Owen Hutchinson the HP Plus facility has been invaluable as it means that if you want to sell or change the machine, you don’t have a severe penalty as the interest is calculated daily.
As Owen Hutchinson said: “It’s all about the flexibility – if you buy something and want to switch out before completion of the full term, you can do. If you make a bad purchase, you don’t have to pay the full interest on the loan. Equally, not having to tie all your cash up upfront takes the pressure out of everyday operations.”
But it is particularly valuable when looking to expand a fleet of equipment that does hit the mark. The flexibility of the HP Plus facility means that Owen can continue to invest in new machinery every 3-4 years while the machines are under warranty and have good resale value. And as the company matures and borrows less, more of the sale price can be invested in the next model.
“Like our JCBs, the Stock Sweepers are wonderful pieces of kit and we’re proud to be supporting another British manufacturer. JCB Finance makes the continued expansion of our sweeper fleet possible. You have to keep investing while things are still under warranty and staying fresh. It’s not just about image; it’s balancing the cost of maintenance. The sweet spot is to change machines while they still have good resale value. We have £14 million of assets so we need to keep up with the flow of depreciation and keep moving forward.
“That’s the strength of us and JCB Finance – they’re a very sensible finance partner who are understanding and flexible.”
SIMPLE BUT EFFECTIVE
With that volume of assets to manage in his business it is imperative to Owen that all machine deal information is easily visible, accessible and easy to digest - which is where JCB Finance’s easy-to-use online portal comes into play.
As Owen Hutchinson explains: “The journey from order, to invoice, to ownership is as good as I’ve ever seen anywhere. Both our in-house accountant and I use the online dashboard, it gives you all the agreements, the age of the machines and the warranty information. It’s so easy to just look on the dashboard, it’s really clear, especially with multiple agreements in progress at one time. You can look at the profile over a month, a year or the whole strategy. As a platform it’s very useful.”
A FIRM FAVOURITE
With over 50 years’ experience in providing asset finance for customers in the construction, agricultural and industrial sectors JCB Finance can offer fast, flexible finance solutions that help preserve working capital while spreading payments in a cost-effective and tax-efficient manner.
Finance options are not restricted to JCB equipment and are also available for other new non-competitive and used machinery, cars, 4x4s, commercial vehicles, tractors, harvesters, cultivation equipment, balers, trailers, static plant, access equipment and more – something which is particularly useful to Owen at Arrowbuild.
The success of JCB Finance has been built on longstanding relationships, a deep understanding of its customers’ businesses and a commitment to meeting their needs. This is echoed in the partnership between Arrowbuild & Civil Engineering and JCB Finance Relationship Manager, Adrian Chawner.
Owen Hutchinson concludes: “We’ve been using JCB Finance since we bought our first machine in 1993 so we have a 30-year relationship with them. Adrian Chawner is thorough, accommodating and when dealing with third parties, he’s so efficient. I hope he never leaves!
“JCB Finance is not only competitive but they also understand our business and the industry implicitly and are more flexible than any other lender. It truly is one of the best financial arrangements I’ve ever had. They are my preferred lender, by a country mile. They are marvellous and I recommend them to everyone.”
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