Tag: Coronavirus Business Interruption Loan Scheme

Bank support helps plant hire firm through COVID-19 crisis

A Scottish plant hire business is keeping moving during the current crisis after securing support thanks to Bank of Scotland. 

Mulholland Plant Services Ltd in Polbeth, West Calder, has over 600 units of plant equipment and machinery available for hire to civil engineering, housebuilders, local authorities, and industrial contractors across the UK, using its own fleet of lorries and service engineers to provide UK coverage for their customers.

Due to the government’s UK-wide lockdown introduced in March, the business saw 95% of its customers, mainly in the construction sector, stop work immediately though local councils and railway services continued to hire equipment.

As a result of the lockdown, turnover in April fell significantly compared to the same period last year.

The downturn has forced the business to furlough 85% of its employees with the remaining members working to support customers that are still open. This includes staff to deliver machinery, field engineers to support customers remotely, and labour to service and prepare the machines.

In order to pay its suppliers, staff wages and deposits for new plant equipment, Mulholland Plant Services Ltd, approached Bank of Scotland for support. The business secured a loan as part of the government’s Coronavirus Business Interruption Loan Scheme.

George Mulholland, director at Mulholland Plant Services Ltd, said: “The construction sector is a key revenue pillar for us but restrictions imposed by the government meant most of our customers, 95%,  were forced to stop work at very short notice.

“Some of our local authorities and industrial contractor customers are still working throughout this crisis and need our services.

“With Bank of Scotland’s help, we’re able to continue supporting our customers that are currently working through what is a hugely challenging time for everyone.

“The funding will also help ensure we can pay our suppliers and equipment costs when business as usual resumes although it is unlikely to pick up as quickly as where we left in March.”

David Allan, relationship director at Bank of Scotland, said: “Planning a route through this stormy period is a huge hurdle for almost every business in Scotland.

“This is why we’re committed to being by the side of companies like Mulholland Plant Services Ltd to help them adapt and adjust in the short-term and come out of this unprecedented time in a strong position.”

CBIL boost helps recycling business support gardeners in lockdown

  • Bank of Scotland supports green waste recycling firm with six-figure CBILS loan
  • Forth Resource Management triples online compost and topsoil delivery sales as more people spend time in their gardens
  • Working capital injection comes as local authority clients stop garden waste collections and close local recycling centres 

An East Lothian recycling business has seen its online sales more than triple and has stepped up its local delivery service with the support of Bank of Scotland. It is believed that the jump in sales is partly as a result COVID-19, with more people spending time at home and in their garden.

Forth Resource Management recycles more than 100,000 tonnes of organic waste for local councils and landscapers across Scotland each year, retailing subsequent product direct to local residents, builders merchants, garden centres and farmers.

With the UK now on lockdown, the business has increased the output of its online retail offer, supported by a six-figure loan from Bank of Scotland as part of the government-backed Coronavirus Business Interruption Loan Scheme.

The funding comes as a number of Forth Resource Management’s key local authority clients have stopped their garden waste collection services and closed their local recycling centres.

While the business has ultimately had to furlough a small number of its employees, the booming online delivery service – alongside the working capital injection from the bank – is expected to stand it in good stead for when normal trading resumes.

Tommy Dale, managing director at Forth Resource Management, said: “Local authority contracts have always been a key revenue pillar within our company but we’re fortunate that the nature of our business means we can adjust our focus and meet growing need elsewhere.

“Gardening and time spent outdoors is offering valuable respite up and down the country so it’s nice to know we’re positively contributing to keeping spirits up.

“The speed at which Bank of Scotland provided the funding has given us a great deal of confidence to trade through this challenging period and line up investment for growth in more certain times.”

Daniel Burns, relationship manager at Bank of Scotland, said: “Plotting a path against current headwinds is a challenge for almost every business at present.

“As such, we’re committed to being by the side of companies like Forth Resource Management – working with government to enable them to adapt their operations for the short-term.”