Pay as you Save | Finance for energy efficiency projects

‘Pay as you Save’

Asset finance for energy efficiency projects

A key barrier impeding the capture of energy efficiency savings is cashflow. Typically, energy efficiency has a high upfront cost and a slow return on investment, and managers prioritise spending of available capital on more urgent core business activities. We have developed bespoke asset finance facilities to help solve this problem.

Contact us to find out more.

‘Pay as you Save’ asset finance

In some circumstances these grants and loans will not be available. Typically this happens when:

•	Grant funds have run out

•	A technology is not eligible for grant or loan funding.

•	The technology is appropriate, but has an ROI of longer than 4/5 years

•	Your organization is disqualified under the state aid (most companies in the transport sector, most companies producing, processing, or marketing agricultural or fisheries products, or for export-related activities)

The Pay as you Save asset finance programme (green finance) enables you to install energy efficiency measures at no upfront cost and structure the repayments so that they are always less than your energy savings. This generates real savings from day one and has a cash-positive effect on your finances.

The Pay as you Save is designed for organisations that do not have the funds to invest in energy efficiency or for policy reasons can only use off-balance sheet finance for energy efficiency programmes.

Eligible equipment

The finance can be used for any energy efficiency products that qualify for an Enhanced Capital Allowance plus other approved technologies.

Finance types

The finance is available in a range of forms. These include:

•	Residual value based Operating Leasing

•	Sale and Leaseback

•	Hire Purchase

•	Managed Equipment Service

We can offer a strategic approach to the acquisition, installation, management, maintenance, scheduled equipment upgrade / replacement and disposal energy efficiency measures throughout the life of the agreement. We have extensive experience in putting the right financial structures in place to fit the budgetary requirements of our customer.

Benefits of leasing

1. Budget Flexibility

There is often internal resistance to additional, unforeseen, expenditure from limited budgets. Our equipment finance solutions can be modeled to fall within your capital and revenue budgets and structured to reflect usage.

2. Avoids equipment obsolescence

Often a finance agreement is written over a term that matches the useful life of the equipment. This encourages a discipline of regular equipment refresh, which can dramatically reduce maintenance costs

3. Cash preservation

Leasing conserves vital cash resources by eliminating the capital costs of purchase. Cash raised through a sale and leaseback transaction can be re-invested in your core business activities, leading to increased profitability

4. Additional Source of Credit

Leasing provides an additional source of finance. Existing credit lines can be preserved and used for your day-to-day activities.

5. Off-balance sheet status

Assets financed under an operating lease contract may be classified as off-balance sheet. This can improve your financial ratios and the ability to raise external finance.

6. Lease administration

Our simple approach to lease administration keeps costs low and the process easy to manage.

7. Tax efficiency

Rentals are wholly allowable against tax where applicable.