Santander Business Banking has provided £50,000 asset finance funding to Axminster-based Axe Skip Hire for a 7.5 tonne DAF lorry.

Axe Skip Hire will also add a second lorry later in 2019 through the expansion of the asset finance provision from Santander.

The asset finance funding from Santander Business Banking complements a separate funding package provided by the bank to the owners of the business to refinance existing debt and purchase more storage containers and increase capacity at the site in Kilmington.

Established in 1985 by John Bostock and his wife Jane, Axe Skip Hire currently operates five lorries that service a fleet of over 500 skips primarily across the Devon, Dorset and Somerset region. The firm recycles around 90% of the waste it processes: a dedicated team sorts through all the waste into containers destined for recycling plants and waste management facilities for reuse.

James Bostock, director of Axe Skip Hire, said: “Axe Skip Hire continues to see strong local demand for our low-cost, reliable service, and it’s great to be able to upgrade our fleet with a new DAF lorry with help from Santander. We know that our customers value the recycling aspect of the business and we are now focused on taking our brand deeper into our current markets and hopefully further afield.”

Murray Smith, business relationship director, Santander Business Banking, said: “We’re delighted to support this successful local business to meet its growth and expansion aspirations. Asset finance can be an efficient, cost-effective means to help grow a business and is currently subject to a temporary increase in the Annual Investment Allowance, allowing businesses to write off the cost of most items of plant and machinery in full against profits in the year in which the expenditure is incurred.”

In the same region, last year Axminster Carpets secured a £3.4m funding arrangement from Independent Growth Finance (IGF). The asset-based lending facility includes funding against receivables, inventory as well as plant and equipment.