How a South East Scaffolder Funded £280,000 of Scaffolding to Land Council Contracts

Council contracts are exactly the kind of work most scaffolding firms want on the books — steady, long-term, and good for the reputation. The catch is they usually come with a stock requirement that's bigger than what you've got sat in the yard.

That was the position our customer found themselves in. They'd been shortlisted for council contracts across the Greater London area, but winning the work meant having the dillema of hiring or buying tube, fittings and boards of the business.

Buying that outright would have meant draining the cash they needed for wages, transport and the day-to-day running of the business — right at the point they needed it most.

The problem wasn't the contracts. It was the stock in front of them. Rather than tie up working capital, we financed the materials directly from the supplier as opposed to paying for this upfront or paying the the monthly hire cost. With this we saved them around £3400 per month & they will then own the scaffolding at the end of the 36 month Hire Purchase contract increasing their future margin on jobs.

Public sector contracts often move fast once they're awarded, and the firms that win them tend to be the ones who can mobilise stock and vehicles quickly — not just the ones with the lowest bid.

Asset finance means you're not choosing between bidding for bigger contracts and protecting your cash flow. You can do both. If you're eyeing up council or larger commercial contracts and the stock requirement is the thing holding you back, it's worth a conversation before you rule anything out.

Get in touch to talk through what's possible for your business on 0161 533 0017.