Plant-based snack manufacturer NutreeLife has massively increased its production capacity with the help of a hire purchase solution from Siemens Financial Services (SFS)
Patrick Mroczak, MD and CEO at NutreeLife Ltd gave some details. “We were ready to invest in the next stage of business development, and we needed new equipment to meet demand. We also wanted to preserve our cash flow to deal with the volatility of the pandemic.”
To protect the business’ working capital, SFS suggested a hire purchase arrangement. Under the agreement, NutreeLife could acquire the equipment immediately and with no upfront costs. Instead, SFS tailored the arrangement so that the company could spread the cost over five years in regular payments and at the end of the arrangement NutreeLife will automatically own the equipment outright.
Under the hire purchase solution, the manufacturer also met the conditions for the UK government’s super-deduction tax initiative, whereby a company investing in qualifying new plant and machinery assets is able to claim 130 percent of the equipment’s value in year one.
With the new equipment and technology installed, NutreeLife has been able to triple its production and turnover, and expand operations.