The option expired Friday. The plant yard sat dormant either way. A commercial property developer needed $350K to lock in the deposit on the next site, with a yard of formwork, scaffolding and modular sheds between projects. ABL released the equity from the plant, lodged it with Lloyds for the loan term, and the developer secured the site. The plant was the security. The next project was the exit.
The situation
Working capital, specifically a deposit. A short-term gap between the completion of one project and the ground break of the next, with a site option about to expire.
The developer owned a yard of formwork systems, scaffolding rigs and modular site sheds outright. All of it sitting dormant between projects. Equity locked into plant that would be needed again in eight weeks but was idle right now.
This is what asset-based lending looks like at its simplest. A business owns an asset with equity in it. They need short-term cash. ABL releases the equity for the loan term, and the asset comes home on repayment. Same shape as a home equity loan, just with a different asset class.
The asset
A yard of formwork systems, scaffolding rigs and four modular site sheds. All owned outright. All sitting in storage between the completion of the last development and the ground break on the next.
For an asset-based lender, that’s enough to underwrite. The asset is the security, the business is the borrower, the deal doesn’t need a polished P&L to make sense.
The need
$350K to secure the deposit on the next development site before the option expired. The kind of cash that has to land this week, not after six weeks of bank diligence on the SPV.
The structure
The deal went through as a Park It facility. The plant was lodged with Lloyds for the loan term. $350K disbursed. Total loan amount was $378,000 with fees built in.
Plant in storage at Lloyds. Developer with deposit cash. Site option exercised, settlement booked.
That’s the Park It structure. The plant stays lodged for the duration of the loan, then returns to the developer in time for ground break on the new site.
- Product: Park It
- Asset: Yard of formwork, scaffolding and modular site sheds, owned outright
- Disbursement: $350K
- Loan amount: $378,000 (includes fees)
- Use of funds: Site deposit
- Security: Plant lodged with Lloyds for the loan term
The outcome
Funds in the developer’s account in time to exercise the option. Plant lodged with Lloyds, loan running, refinance scheduled out of settlement on the completed project. The yard comes home when the next ground break needs it.
Developers don’t sit still. The yard’s only quiet for so long. We can release equity from plant between projects and have it back on site by ground break.
Why this deal worked
Three things had to be true for the deal to work. They’re the same three things every Park It deal needs:
- An asset with real equity, owned outright. None of the plant was financed. All of it could be lodged cleanly for the loan term.
- A short-term gap, not a long-term issue. The need was for a few months, not years. That’s the kind of bridge ABL is built for.
- The right product for the asset. Plant sitting dormant between projects is the textbook Park It scenario. The asset isn’t earning, the storage doesn’t cost the developer anything operationally, and the plant returns when the next site needs it.
If your client has plant between projects and a deposit window closing, that’s an ABL conversation. Dormant plant is releasable equity. Park It is the structure that holds it for a defined window without disrupting the next project’s build schedule.
Got a developer with plant between projects?
If your client owns construction plant outright and has a short-term deposit or settlement gap between projects, Park It is the structure. We lodge the plant for the loan term and release the equity for the deposit. Free desktop valuation and a clear borrowing figure, all inside 2 hours. Same-day settlement when the asset is secured.