The scaffolding sector is huge business here in the UK, with a market size of £3.6 billion. And the construction industry is forecast to experience ongoing growth over the next four years, so it’s likely to be a busy time for scaffolders, as demand will no doubt keep on rising.
Like all businesses, scaffolders are likely to look for financial support from time to time. Funds might be needed for buying new equipment or paying suppliers, and if the cash isn’t on hand it can lead to slower growth and missed opportunities.
This is where scaffolding finance can help. This article explores the different finance options available to scaffolding businesses and how these can boost their working capital.
What is scaffolding finance?
Scaffolding finance refers to various financial solutions tailored to meet the unique needs of scaffolders. For example, buying different types of scaffolds like suspended or cantilever, investing in safety accessories, and maintaining equipment. Funds may also go towards hiring and training staff, managing cash flow, covering running costs like rent or expanding the business.
Below, we explain the main financing options available for scaffolders.
Business loans
Business loans provide a lump sum of money that can be used for a great many needs, from buying equipment and hiring staff to expanding operations and any other business operations. The loan is then normally repaid over a set period of time with interest with fixed monthly payments.
Construction finance
Construction finance is a specialised form of finance designed specifically for the construction industry, including scaffolding businesses.
Construction is one of the most capital-intensive industries in the UK, and therefore, often requires substantial financial backing. Construction finance offers support not just to main contractors, but also to sub-contractors. This type of finance helps businesses maintain a steady cash flow, enabling them to manage contracts and promote growth effectively.
Equipment finance (asset finance)
Scaffolding equipment finance, also known as asset finance for scaffolders, allows businesses to purchase new equipment without having to pay the full cost upfront.
Businesses can spread the cost of the new equipment over several years, making it more manageable. This arrangement converts the large initial outlay into affordable monthly repayments, easing financial pressure while helping to maintain a healthy cash flow.
Invoice finance
Invoice finance is another popular form of scaffolding finance. It lets your business convert all outstanding invoices into working capital, easing cash flow. This solution is especially useful for scaffolding companies dealing with late payments from clients.
Vehicle finance
Vehicle finance helps scaffolding businesses finance the purchase of vehicles needed for their operations, including trucks, vans, or other types of commercial vehicles like a company car. Like equipment finance, it lets you buy vehicles by distributing costs over years with fixed monthly payments.
Refinancing
Refinancing is when you take out a fresh loan to pay off an existing one. It can be a chance to lower monthly payments, reduce interest rates, or change the loan term.
New start finance
For those looking to start a new scaffolding company, a new start finance loan can provide the initial capital needed. These loans can be used for various costs to get you up and running, including buying equipment, hiring staff, or securing a business location.
Can scaffolders get finance with poor credit?
Weak credit isn’t always a barrier for securing scaffolding finance. At Origin Finance, we’ll leverage our expertise and extensive network of construction and scaffolding lenders to find a financing solution that suits your particular needs and circumstances. To do this, we’ll request some supporting documents to help strengthen your application. Speak to the team to find out more.
What is the minimum amount scaffolders can borrow?
The minimum that can be borrowed is £10,000. Our team will work with you to understand your needs and find a loan to fits your situation.
How Origin Finance can help
As experts in construction finance, we specialise in providing tailored financial solutions for scaffolding businesses. Whether you need a business loan, equipment finance, or any other form of scaffolding finance, our team of experts will walk you through the process and help secure the best possible terms. We’ll do the legwork, researching and liaising with lenders on your behalf.
We have access to a broad range of lenders who specialise in construction and scaffolding finance, many of which only accept applications from brokers. This access can be especially handy if you’re aiming to reduce your current interest rate or secure more favourable terms.
Most importantly, our knowledge and experience can protect your credit rating as we’ll ensure that you only apply to the most suitable lenders, reducing the need for multiple credit checks that might harm your credit score.
Get in touch for a free no-obligation quote to find out how we can help your scaffolding business.
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