Autumn Newsletter
It was certainly an eventful summer; in the 3 months since our last communication we’ve had two Prime Ministers and witnessed the deeply sad passing of our longest reigning Monarch Queen Elizabeth II. In addition, the economy remains volatile and unpredictable with rates soaring compared to what we’ve been used to for the last c.15 years and the cost of living crisis is causing households continued concern.
However, there are positives to draw from all of this in terms of continued levels of business and the unwavering support from our lenders. Even since the numerous rate increases in more recent weeks, we’ve not experienced a slow-down in lending proposals and are completing the same (if not more) deals on a variety of levels.
Naturally, our lending panel have had to pass the rate increases onto us and ultimately our customers. That said; our clients have adapted well and in the main built this into their planning going forward as the need to grow/expand through capital expenditure remains at the forefront of their thoughts. Although it may seem an age ago now, we are still experiencing a Covid ‘hangover’ in terms of demand outweighing supply which means our customers need to react quickly in making key purchases regardless of the current rates.
We have some exciting news! Affinity awarded preferred finance provider status with long established UK based CNC machine supplier…
We are delighted to announce our preferred finance partner status with T W Ward CNC Machinery Ltd based in Sheffield; one of the UK’s leading suppliers of high quality CNC machine tools across multiple engineering services. Both businesses have been successfully working together for nearly 12 months and our partnership continues to grow, assisting Ward’s extensive customer base with a variety of finance solutions. We see T W Ward as a valued partner to our business and we’re sure our relationship will continue to strengthen over the coming years.
Attached and pictured left to right: Simon Whitworth (Managing Director of TW Ward CNC Machinery Ltd), Tom Adams (Director of Affinity Asset Finance Ltd), Neil Kimberley (Director of Affinity Asset Finance Ltd), Stephen Bodsworth (Executive Director of TW Ward CNC Machinery Ltd).
Deal Summary
Affinity on board for growth as transport solutions company lands £2m funding deal…
Significant machine investment delivers immediate business efficiencies…
Our client, a business supplying luxury kitchens, bathrooms and worktops, has established itself as delivering incredible products at very competitive prices across the UK to both commercial and residential customers.
As the cost of raw materials and production costs increased they began to review their production facility. The objective was threefold; identify machinery which would minimise waste, use less energy during production and also reduce the overall production and processing time. After a period of reviewing the machine market they identified three key machines which represented a significant investment of over £571k + VAT, the machines were:
· £170k + VAT CNC work centre machine
· £112k + VAT Industrial edge polisher
· £289k+ VAT Bridge saw and waterjet cutting machine
As a strategic funding partner we had been working with this customer at the start of the review process by providing cost input to their business plan to ensure the payments were serviceable and in line with their budget plans going forward
Over a period of the last 3 months we delivered funding solutions in line with the client’s needs whilst also trying to mitigate the changes in bank base rate. All machines were funded with a 5% deposit, VAT was deferred for 3 months which supported cash flow, and the funding term was between 60 and 72 months. Given the longevity of these machines a 72 month term on the £289k machine meant payments were kept to a minimum.
At Affinity we are proud to work alongside our clients as key partners when they are planning significant investments and we supported this efficiency vision for our customer by delivering competitive funding solutions.
As always, thanks to our valued customers and introducers for your continued support and we look forward to seeing some of you over the festive period and into the new year.