Construction Plant Finance (CPF) has launched PlantFlex, a new funding option for contractors, plant hire firms and owner-operators buying new equipment, flagged via the Construction Equipment Association's Member Insight series. The structure is built around a business contract purchase, similar in principle to PCP finance in the car market: customers make fixed monthly payments over the agreement term, then choose how to close it out.
At the end of the term, PlantFlex gives three options: pay a final lump sum to keep the machine outright, hand it back, or use any equity built up in the equipment as a deposit toward the next purchase. CPF says the option can be used against any brand of new construction equipment, not just specific manufacturer tie-ins, which widens its usefulness for businesses running mixed fleets.
For smaller contractors and plant hire operators, a flexible end-of-term structure like this can make it easier to manage cashflow around equipment upgrades, avoiding the choice between a large balloon payment or losing all the value built into a standard hire purchase agreement partway through. As with any finance product, compare the total cost against a straight hire purchase or lease before committing, since flexibility at the end of term is usually priced into the monthly payment.
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