Hire purchase enabled forestry business to create jobs and take on more contracts
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About Kleen Kutt
Kleen Kutt is an established forestry business in the Southwest. It harvests and hauls wood from sustainable sources in the local area, and supplies major sawmills, wholesalers and offers cash and carry. Forestry Commission, Somerset Wildlife Trust and Woodland Trust have all had contracts with Kleen Kutt.
What did Kleen Kutt want to achieve?
As an environmentally conscious company, Kleen Kutt wanted to acquire smaller equipment because its heavy-duty harvesting machinery damaged foliage in sensitive areas. Plus, their lack of diverse equipment was leading them to turn down projects.
How we helped
Kleen Kutt secured a £150,000 hire purchase facility which was used to acquire a Valtra T153 Tractor, a Kronos Crane Trailer and Transit Tipper van. This also meant Kleen Kutt was able to benefit from the government's Annual Investment Allowance (AIA) incentive.
"In our industry, the equipment we use is very specialised and must be modern in order to remain competitive.
"Lombard understands our business and their support has certainly helped us grow.”
Owner, Kleen Kutt
Acquiring assets through hire purchase helped maintain Kleen Kutt’s cashflow whilst the business expanded.
Kleen Kutt was able to offset the cost of new equipment against the Annual Investment Allowance.
New machinery was greener and able to service a wider range of requirements.
Capacity increased by 25% and two new jobs were created.