Invoice Finance for Plant &
Tool Hire Businesses
Unlock cash from unpaid client invoices or hire contracts to maintain smooth operations and timely delivery of equipment.
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Turn Unpaid Invoices Into Cash To Keep Hire Operations Running
The UK’s construction sector is powered by the plant and tool hire industry. From mini-diggers and access platforms to generators, compressors, and specialist tools, hire companies ensure contractors have the equipment they need to deliver projects on time. Yet while demand for hire equipment is constant, payments are often delayed. Clients may take 60–90 days to settle invoices, creating severe cashflow strain for hire businesses that need to fund wages, maintenance, VAT, and fleet investment in the meantime.
This mismatch between outgoing costs and incoming cash can hold businesses back from growing — or even from operating effectively day to day. Plant & tool hire invoice finance provides a solution by releasing the value of unpaid invoices. Instead of waiting months for income, hire companies can unlock up to 90% of invoice value within days, ensuring stable cashflow and stronger financial control.
Why Cashflow Pressure Hits Hire Firms Hard
Invoice finance is particularly relevant to this sector because of the unique financial pressures plant and tool hire firms face:
- Long Contractor Payment Terms – Many clients delay payment well beyond the agreed terms.
- Heavy Upfront Costs – Fleet purchases, insurance, and delivery costs must be paid in advance.
- High Maintenance Bills – Regular servicing is essential for compliance and safety.
- Seasonal & Cyclical Demand – Income fluctuates with construction cycles, yet costs remain fixed.
- VAT Liabilities – Large quarterly VAT bills intensify the squeeze on liquidity.
For a hire company, these factors combine to make invoice finance not just helpful, but often critical to business continuity.
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How Invoice Finance Works for Hire Businesses
The process is simple and designed for fast turnaround:
Equipment Supplied
Machinery or tools are delivered, and the client is invoiced.
Client Payment
The customer pays into a trust account held with the lender.
Advance Received
The finance provider advances up to 90% of the invoice value, often within 24–48 hours.
Balance Released
The lender releases the remaining balance minus their fees.
This system ensures businesses maintain cashflow, even if clients take weeks or months to settle invoices.
Types of Invoice Finance for Plant & Tool Hire
Invoice Factoring
The lender manages collections directly with clients, freeing up your time and ensuring late payers are chased professionally.
Invoice Discounting
You retain control of debtor management while still receiving an advance on invoices. Discounting is often structured confidentially.
Selective Invoice Finance
Release cash only from specific invoices or debtors — ideal for seasonal demand or one-off large contracts.
Benefits of Invoice Finance for Plant & Tool Hire Companies
Immediate Access to Cash
Avoid waiting months for payment.
Business Continuity
Cover operating costs like wages and fleet maintenance.
Supplier Confidence
Pay suppliers on time and negotiate better terms.
Flexibility
Choose the facility type that matches your needs.
Growth Potential
Take on more contracts without cashflow constraints.
Scalable Facilities
Finance grows with your turnover.
Why It’s a Perfect Fit for the Sector
Plant and tool hire companies exist to make costly equipment accessible without clients needing to pay upfront. In a similar way, invoice finance ensures hire firms themselves aren’t forced to wait for cash that is already contractually theirs.
For a small regional hire company, this might mean unlocking cash from a single unpaid invoice to cover payroll. For a national operator, a full factoring facility across the debtor book ensures predictable income regardless of client delays. In every case, invoice finance transforms unstable cashflow into reliable working capital.
How MacManus Asset Finance Supports Hire Companies
At MacManus Asset Finance, we understand the plant and tool hire sector’s unique financial dynamics. We work with lenders who specialise in supporting businesses that supply the construction industry.
By working with us, you benefit from:
- Specialist Insight – Experience with the challenges of contractor payment terms.
- Access to the Right Lenders – Funders with appetite for hire businesses.
- Tailored Facilities – Solutions aligned to your business model.
- Fast Arrangements – Funding released quickly to keep operations running smoothly.
- Long-Term Support – Guidance as your company grows and evolves.
Key Takeaways
Plant and tool hire companies cannot afford to let late-paying clients undermine their stability. Ongoing fleet investment, VAT liabilities, and maintenance costs mean liquidity is always under pressure. Invoice finance bridges the gap by turning unpaid invoices into working capital within days.
At MacManus Asset Finance, we connect hire businesses with invoice finance facilities designed to release cashflow stress and support growth. Whether you’re a small independent firm or a large-scale operator, we can help you unlock the funds you need to thrive.
Plant & Tool Hire Invoice Finance FAQs
Typically up to 90% of the invoice value, with the remainder paid on client settlement.
Yes, invoice finance is available for companies of all sizes, including SMEs.
Yes, invoice discounting facilities allow you to retain full control and confidentiality.
The facility remains in place, although additional fees may apply if delays are excessive.
Yes, selective facilities are ideal for peak or seasonal contracts.
Advances are usually made within 24–48 hours of invoicing.
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