Once thought to be opposing goals, sustainability and financial success now go hand-in-hand for many businesses. We take the data from your audit report to help you produce robust businesses cases demonstrating the ways sustainable business practices can pay off financially. Key to this is the need to not think of sustainability initiatives as a financial trade-off, but rather as a wise financial strategy.
Through our innovative Analytics & Finance team we provide a range of finance options for businesses planning to implement energy and water saving solutions. Working with our partner Capitas, energy sector experts, the solutions provided are suitable for both public and private sectors allowing them to move ahead with money-saving projects immediately when capital budgets are not always available.
Benefits of Finance
- Payments can be deferred until the project is completed and the savings are being realised so you are cash positive from day one.
- Fixed periodic payments are spread over the term of the agreement so you can budget with certainty.
- No need to wait for capital to become available – projects can begin at once whilst you benefit from low-cost borrowing at fixed and competitive rates.
- Maintenance contracts can be included in the financing – offering complete piece of mind and a guaranteed monthly cost.
- Energy & water efficiency projects reduce your overheads – the only barrier to completing these is the availability of the initial capital outlay
- Asset Finance (including Hire Purchase & Lease facility structures) are available alongside off-balance sheet, Energy-as-Service contracts based on realised energy and operational savings.
The cost of Inaction
- All projects require an initial capital outlay, but often not recognised is the cost of inaction on finances & the planet
- Our graph illustrates the cost of business-as-usual vs implementing an efficiency project
- Tax Relief in the form of Super-Deduction Tax is currently available, but only until March 2023
Can your business afford to do nothing, especially with soaring energy prices?
Types of Finance
| Hire Purchase | Lease | |
|---|---|---|
| Definition | A simple arrangement whereby you pay for the energy solution in instalments and take eventual ownership of the equipment at the end of an agreed fixed term. | The present value of the payment stream equals the acquisition cost of the equipment. Options at the end of the lease include return or renewal. |
| Allowances | You can claim writing down allowances and capital grants | Writing down allowances are not available |
| Revenue effect | Repayment interest is treated as a revenue deduction. | Lease payments (comprising capital and interest) are treated as a revenue deduction. |
| VAT | You will pay VAT on the purchase price | You pay VAT on the rental payments, not the purchase price |
| Best option for | Customers who want to obtain ownership of the equipment at the end of the finance term | Customers who wish to treat payments as a revenue expense, have equipment upgrade options and/or do not wish to make an up-front VAT payment |
| Hire Purchase | Lease | |
|---|---|---|
| Definition | A simple arrangement whereby you pay for the energy solution in instalments and take eventual ownership of the equipment at the end of an agreed fixed term. | The present value of the payment stream equals the acquisition cost of the equipment. Options at the end of the lease include return or renewal. |
| Allowances | You can claim writing down allowances and capital grants | Writing down allowances are not available |
| Revenue effect | Repayment interest is treated as a revenue deduction. | Lease payments (comprising capital and interest) are treated as a revenue deduction. |
| VAT | You will pay VAT on the purchase price | You pay VAT on the rental payments, not the purchase price |
| Best option for | Customers who want to obtain ownership of the equipment at the end of the finance term | Customers who wish to treat payments as a revenue expense, have equipment upgrade options and/or do not wish to make an up-front VAT payment |
Simple Process
“We had a real challenge to find ways to commission much-needed new lighting for the busy warehouse with the running costs being so prohibitive. The capital-free solution provided by SaveMoneyCutCarbon made the decision a real no-brainer and convinced us to go ahead. We haven’t been disappointed – the savings on energy mean that the retrofit is effectively self-financing. We’ll go on saving money for many years, through near zero maintenance costs and lower electricity bills.”
Leon McGill Director of Operations at U70 Ltd