Whether your customer is a multi-sited manufacturer or a family farming business, materials handling equipment will play a key role in your day-to-day activities.
Throughout the pandemic, materials handling came to the forefront of operations for many businesses in the UK due to the increase in online sales. Although delivering an increase in business, this was coupled with a significant increase in demand for equipment and a heavy toll in utilisation hours were put onto existing assets to meet those demands. This resulted in a surge of requirement for new and replacement assets in the materials handling market.
Take forklift trucks as an example, a new seated forklift can be priced from £20,000. Not all companies had the capital budgets readily available to add to their fleet so many turned to used and refurbished units. However, with technology advancing constantly in this sector, this meant the latest solutions were not always an option. Businesses were potentially missing out on the latest released units, with efficiency and returns they deliver but still having the burden of demand on their cashflows for the units acquired.
As the UK begins to come out of the pandemic lockdowns, many consumers continue to shop online for both convenience and safety. Online shopping is what is keeping warehouses up and down the country working 24/7 to ensure purchases arrive as promised. However, a 24-hour working day on materials handling equipment can take its toll. Whether it be battery chargers for the warehouse forklift or the hours clocking up on the access equipment, these business-critical assets can start to become less reliable, affecting productivity.
With a fully functional warehouse demanding equipment in the hundreds of thousands, how are businesses of any size able to fund such equipment alongside staffing and other operational costs without affecting the bottom line?
Asset finance is an ideal solution to this dilemma. By allowing businesses to spread the cost in line with utilisation, new assets can be brought onboard immediately without the capital outlay and within manageable budgets in relation to their operation.
Arkle Finance Limited have been offering finance to both new start and well-established businesses based in the UK for the past 25 years. We understand the demands on cashflow and are here to support our brokers to deliver a personalised solution for your customer. Contact your Broker Manager today for more information.