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Pressuretech Transport

pressuretech 300A long established business supplying LPG to businesses and consumers in the North West who having built up a good customer base, and reputation, decided to explore other opportunities within the fuel delivery market.

They quickly realised that the renewable energy market was a fast growing ‘here to stay’ market with the biggest growth area being in Biomass boilers. Biomass boilers burn wood chip/pellets in the main and this can be stored and delivered in a very similar way to LPG, stored in a silo and delivered by tanker.

Pressuretech sourced 3 tankers which were refurbished specifically for purpose and commissioned the build and installation of a new storage silo. The silo was custom built to allow the tankers to be driven underneath to allow easier filling however there was a substantial amount of ground works required at installation.

Pressuretech did not want to use all their available cash for this project and decided to utilise asset finance as a way of retaining existing cash within the business. However they came across a problem in that the refurbishment of the tankers cost more than the end valuation and most companies would not fund ground works as there is no asset.

After a visit by Excel-A-Rate’s Managing Director, David Ballan, an agreement was reached to finance the tankers and silo, including ground works, at cost outlay rather than valuation thereby providing the funding required without taking a large chunk of cash out of the businesses cash flow.

This resulted in a win : win situation, a happy client being able to expand his business without a large cash outlay and a finance company again showing its flexibility and understanding of its clients business.

Key issues

  • Opportunity to build on growth of renewable energy
  • Funded ground works to accommodate silos
  • Funded based on cash outlay rather than valuation (not perceived as an asset by other funders)
CCTA
Excel-A-Rate Business Services Limited is authorised and regulated by the Financial Conduct Authority FRN 713832.
Excel A Rate Business Cash Limited is authorised and regulated by the Financial Conduct Authority FRN 671187.

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