Asset finance for locomotives helps keep new business rolling in
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About Rail Operations Group
Rail Operations Group provides an essential support service to the UK rail industry - particularly the engineering and train operating communities - and specialise in movement of rolling stock for testing, maintenance, modification and refurbishment. They also offer a range of management services from concept design through to the production and application of engineering and operating systems.
What did they want to achieve?
In order to fulfil contracts, Rail Operations Group were leasing locomotives from other suppliers. This was expensive and meant they could miss out on jobs if the necessary locomotives weren't available. So, when the opportunity to buy five competitively priced locomotives arose, just as they were tendering for a £5 million contract, they jumped at the chance to secure them.
How we helped
We arranged a lease purchase agreement for the five locomotives, through which the assets will be repaid in full within 60 months. A minimal deposit helped Rail Operations Group preserve their cash flow, and the monthly repayments for all five locomotives were less than the cost of leasing just one for a month on spot-hire.
“Dan Baxter at Lombard worked with us as if he was one of our team, committed to helping develop our business. With Lombard, it feels like they really want us to succeed.”
Co-founder and Director, Rail Operations Group
Puchasing these assets while preserving their cash flow has allowed Rail Operations Group to improve profitability and expand their business.
Owning the locomotives improved profit margins by reducing the business's spend on spot hires.
A larger fleet meant the Group could take on more contracts, and expand into the new market of passenger operations.