Construction Machinery Finance

The construction industry is one of the UK’s largest: it’s estimated that some five percent of the country’s total number of employees work in the sector. It’s easy to see why: whether it’s a school funded by public infrastructure funds or a private corporate HQ, something will always need to be built.

But that doesn’t make success in construction a foregone conclusion. In fact, it requires careful planning and extensive consideration of the logistics – particularly the sourcing of reliable, high-quality machinery.

This machinery, however, tends to be expensive to acquire and maintain, and the cash flow of construction firms can be unpredictable, forcing them to either make sacrifices or deplete their cash reserves.

By using our construction machinery finance, you can give your customers every incentive to secure the equipment they need and strengthen your understanding of their requirements.

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Finance Unlocked
Benefits of Leasing

Why machinery finance?

Cost-effective lease agreements make it easy for construction firms to secure the equipment they need on an immediate and long-term basis. When your customers lease machinery, costs become more predictable and more manageable.

Hire purchase agreements, for example, provide a convenient route into ownership for companies that wish to possess the machinery they operate outright. By spreading the cost over monthly or quarterly payments, there’s no immediate hole in the customer’s annual budget – besides the initial upfront VAT payment – and every incentive to secure the equipment they need without delay.

But some customers are less interested in ownership than function, in this case, an operating lease would be better suited and can incorporate maintenance costs. By functioning as a business expense, it limits your customers’ taxable profit* – and therefore reduces the amount of corporation tax owed.

A finance lease makes it possible to secure machinery on a project basis, allowing your customer to return the item – without having to dispose of it. They can also claim back VAT spent on rental payments. For this kind of leasing agreement, negotiating the extended or ongoing use of the machine beyond the initial lease term is entirely possible.

*BNP Paribas Leasing Solutions is not authorised to provide tax advice. Business customers should refer all tax related matters to their company accountant/auditor.

Why BNP Paribas Leasing Solutions?

At BNP Paribas Leasing Solutions, our machinery finance agreements are carefully calibrated to suit the needs of construction equipment manufacturers, dealers and business users. We can offer finance solutions for best-in-class industry specific equipment, plant and machinery. Our range of finance products include operating lease, business hire purchase, and finance lease.


Construction Equipment Association