Asset Finance helps groundworks contractor to service new contracts

A Newton Abbot-based groundworks and building contractor has invested in equipment to help it service new contracts after securing an asset finance facility from Lloyds TSB Commercial Finance – within just 24 hours of its initial funding request.

Established in 1990, Tanner & Bruce provides groundwork services including site clearance, laying foundations, drainage installation and other pipe work to commercial customers.

The business, which currently employs seven people, predominantly provides its services to holiday parks in Devon, Dorset and Cornwall, as well as house builders in the South West region.

In order to modernise its operation, Tanner & Bruce required a new excavator. To fund the capital outlay, the business approached its banking partner Lloyds TSB Commercial, which introduced it to Lloyds TSB Commercial Finance who provided an asset finance facility.

The excavator will allow Tanner & Bruce to undertake a number of contracts with holiday parks in the region, many of which require regular extensive groundworks and building services for new and existing chalets.

Jim Bruce, co-founder and director of Tanner & Bruce, commented: “As a business, it is essential that we continue to modernise our operation in order to remain consistent with industry improvements and win new contracts.

“Paying cash outright from our balance sheet for the new excavator would have put significant pressure on our working capital. The facility from Lloyds TSB Commercial Finance ensured we were able to fund upfront costs.

“The bank agreed the funding within 24 hours of our initial request, which removed any uncertainty from the process and allowed us to purchase the excavator much sooner than expected. It is also great to see that Lloyds TSB Commercial Finance is continuing to support SMEs throughout the economic cycle.”

Richard Stevenson, senior relationship manager for asset and invoice finance at Lloyds TSB Commercial Finance in the South West, said: “Ensuring that groundwork projects are as efficient as possible is essential for firms like Tanner & Bruce to secure new contracts, so it is vitally important that they keep machinery and equipment up to date to drive expansion.

“Asset finance enables companies to obtain funding for the purchase of the significant assets they need to seize growth opportunities. It allows firms to spread the cost of these assets without having to fund them using working capital.”

Paul Hore, relationship manager at Lloyds TSB Commercial, added: “We are committed to supporting our customers by assessing their needs and providing the most appropriate funding products to drive growth. Being part of Lloyds Banking Group allows us to draw on a variety of lending products, so we can consider much more than just traditional loans and overdrafts to our customers.

“Working closely with the management team at Tanner & Bruce and our Lloyds TSB Commercial Finance colleagues, we were able to identify the company’s requirements and quickly provide an asset finance facility.”

June 2011