Asset finance to support growing businesses

For Briggs Equipment, one of the key challenges is how to support customers not only today, but also over the long term. It’s not simply a question of helping businesses to achieve greater flexibility and reduce costs to drive performance, although this is important, but of working in partnership with them so that they can achieve their growth ambitions.

The changing nature of procurement

Traditionally, the acquisition of equipment has been viewed as a procurement decision, yet Briggs is finding that more and more companies are using the review process as a way of managing their business operations and believes this is a welcome move.  At the same time, as customers get more involved in operations decisions, they are growing weary of the burden of managing a supply chain involving multiple providers, which can be both time consuming and costly, and are keen to do business with providers that are able to operate as an effective ‘one stop’ resource.  

Funding and the impact on growth

Aware that access to finance can be a critical factor when it comes to implementing ambitious business development strategies, Briggs has set up a dedicated asset finance business, BE Finance, to support companies that are in expansion mode. 

With £200million of approved finance, in-house finance experts and access to specialist resources, BE Finance provides a total asset management solution. The proposition is simple: finance contracts are tailored to meet individual customer requirements, ensuring that they benefit from unprecedented flexibility, choice and ease of administration – both at agreement inception and throughout the contract.

A different approach

BE Finance takes a fundamentally different approach to that traditionally adopted within the finance industry, where solutions are heavily influenced by the underlying providers. This means BE Finance is able to create innovative and flexible solutions to meet specific customer funding requirements in a cost-effective and timely manner. 

Whereas most banks and finance houses evaluate a lending proposition on its own merits, BE Finance considers all aspects of a company’s capital requirements and cash flow to determine where and how it can add value.

Customers deal direct 

Importantly, customers deal direct, which means they enjoy all the usual benefits of doing business with Briggs Equipment, such as speed of response and straightforward administrative processes. Decisions are quick, which means that BE Finance customers don’t have to contend with lengthy, drawn out negotiations and bureaucratic credit committees – the red tape commonly acknowledged as a major downside when working with banks or third party finance providers.

BE Finance’s core activity is the contract hire of materials handling equipment – total asset management from procurement through to disposal for Hyster, Yale and other specialist brands. What really sets the initiative apart, however, is the fact that funding can be provided for everything from new plant and machinery to company vans and even a complete warehouse solution. 

Working closely with a longstanding Briggs customer, the BE Finance team helped deliver a facilities development programme by creating an integrated solution that tied significant investment in specialist plant to an improvement in materials handling capabilities in a single, cost-effective finance package.

Flexible finance solutions

For simplicity, BE Finance plans are based around contract hire and incorporate a series of additional benefits. The classic choice, contract hire offers companies of all sizes a straightforward route to acquiring the assets they need with minimal cash outlay and no arrangement fees when the agreement is set up.

Since there is no delay or cost attached to machine disposal and no residual value risk, customers can enjoy full benefit throughout the life of the asset. Fixed costs help to make forward planning easier, while VAT is spread over the lease period and can be reclaimed on all repayments, which are tailored to suit an individual company’s cash flow.

The core range of flexible BE Finance lease and finance options, which include a series of additional benefits and can be customised to suit individual business requirements, comprises:

• BE Flexed

BE Flexed is an innovation in asset acquisition, since companies can access all the resources they need but with the flexibility to off hire equipment early should their needs change. It is ideal for companies that want extra flexibility in their business model, especially those working to short contracts. Key benefits include a low initial investment, annual termination options, rental cost reductions at each contract anniversary and off balance sheet accounting.

• BE Deferred

BE Deferred is ideal for companies where investment in new equipment will not generate immediate income, or for those going through a transition. A full three-month payment holiday at the beginning of the lease contract helps to protect cash flow and aid planning. Whether a customer is setting up a new distribution hub or implementing an equipment replacement programme, BE Finance allows it the time to bring the assets up to 100% performance so that they are earning money for the business before it has to start paying for them.

• BE Advanced

To ease cash flow challenges when new investment is being deployed, BE Advanced incorporates a cash injection of up to 10% at the start of the hire contract to offset installation costs or the termination costs levied by the customer’s existing equipment supplier. Increased funding options are designed to allow a business to grow, while fixed costs simplify budgeting.

As a solutions provider Briggs Equipment is not focussed on market share, so can put its customers first, channelling its efforts into building the kind of long-term partnerships that will support businesses by delivering improved operational efficiency.

Unique in the marketplace, BE Finance is a cornerstone of the 'one-stop’ approach to meeting customer requirements, which Briggs has been developing in light of the move towards single source supply.

BE Finance is purpose-designed to make it easier for companies to grow, and in an uncertain economic climate this flexible, partnership approach to capital investment looks set to provide a welcome boost to business confidence.

To find out how you can take advantage of the flexible funding plans available through BE Finance, call Briggs Equipment on 03301 23 98 14 and speak to a finance expert.