All careful commercial directors will have an eye on business overheads. In the context of energy costs, the market volatility and the climate emergency, net zero carbon is an important consideration for all businesses.
Now more than ever, energy efficiency planning is essential to reduce overheads, freeing up capital to aid business growth and not survival.
Whilst the cost justification of green technologies in the long run is a no brainer, many companies are struggling with cashflow due to rising material costs, lead times and delayed payments. This means the outright purchase of these assets may be too painful to justify, despite the long term benefits.
This is where we come in. As an independent finance broker we have access to a wide range of funders, who aren’t directly accessible. Not only do they look at traditional assets, they are also keen to help fund our clients’ energy efficient projects. This includes everything from a single electric charging point, to a whole project including any item from the below list:
| ASSET TYPE | MAXIMUM FINANCE TERM |
| Solar Panels | 84 months |
| Biomass | 84 months |
| Ground and Air Source Heat Pumps | 84 months |
| Wind Turbines | 84 months |
| Anaerobic Digesters | 84 months |
| LED Lighting | 60 months |
| Electric Vehicles | 60 months |
| Electric Charging Points | 60 months |
Due to the nature of energy efficient assets and their long lifetime, some funders are happy to offer longer terms than the standard 5 years. Not only will this keep the monthly payments as low as possible, but you will also feel a greater effect of the cost savings that the asset will bring.
Focus are able to arrange finance for all sectors, from retail to manufacturing and engineering, we have experience with all business types. Our deal sizes are from £1,000 upwards (with no maximum) however we tend to find that the finance is most cost effective above £10,000.
We are able to work with any supplier of your choice and can facilitate a variety of payment requirements as stipulated by the supplier. If it is your preference to work with a number of different suppliers as part of a project, we can ensure that the agreement is structured in a way that enables each party to be paid promptly when needed.
The process is very straight forward. To provide you with a finance illustration, all we would need is a copy of the supplier’s quote and we will reply promptly with indicative figures. Once given the go ahead we will obtain an approval and liaise with your supplier(s) regarding invoicing. After the supplier has been paid, your agreement will be activated and your monthly payments will start. We would then be on hand to answer any questions you have for the duration of your agreement.
It is also worth bearing in mind that some of the assets above may qualify for enhanced first year allowances. Whilst hire purchase will have to be utilised to qualify for the capital allowances and the VAT needs to be paid up front, we can arrange VAT deferrals so the payment falls in line with your VAT quarter.
We are happy to speak to your accountant to discuss agreement types, timings and therefore the best way to structure the finance.
You may find that your supplier also introduces you to a finance company, however it is always worth getting a comparative quote. The supplier may be getting paid a commission for the introduction, which will make their finance quote more expensive. We are confident that we are competitive as we don’t pay supplier commissions and as a small team, we have huge pride in our customer service and retention.
If your favourite colour is currently green, whatever the size of the project you are considering give us a call to chat through your plans. We will lay out your options for you and provide you with a bespoke quotation and answer any questions you may have.