Green equipment finance is funding for business investments in energy efficient and eco-friendly machinery, equipment, tech, systems and charging infrastructure. With the recent spike in diesel prices as a result of the conflict in the Middle East, many operators are looking for options. Seeking ways to counter the higher costs in the current scenario and to mitigate risk against any future threats. Interest in renewables and alternative power machinery and vehicles is reportedly high, as businesses look at options to diesel powered equipment.
Investing in new assets can always be a major decision. Under the current economic conditions with many operators facing cost and other pressures, the decision may become even more significant. Key to the viability of investing in energy efficient assets can be the funding. Sourcing affordable loans to ensure the investment not only counters fuel costs but also works with cash flow and long-term financial objectives. We support operators to invest in alternative power source assets by sourcing the most cost-effective financing solutions.
Green Equipment Finance Facilities
There are no specific or different loan types to acquire ‘green’ assets. All business assets are financed with the same credit facilities, whether diesel or renewable driven. The choices include Lease, Chattel Mortgage, Commercial Hire Purchase and Rent-to-Own.
Operators can select the credit facility that suits the accounting method they use and their approach to their balance sheet and tax deductions. All these asset loan products are secured loans, using the asset as the collateral, with most operators not required to provide additional assets as collateral. Rates are fixed and will vary with the credit facility, lender and the individual business operation. Where a bank or lender is currently offering special rates for energy-efficient asset loans, your Jade broker will source these options for your consideration. Terms are fixed, as are the monthly repayments.
New businesses looking to start their operation as energy efficient as possible, can use our access to specialist lenders for Low Docs and No Docs Equipment Finance opportunities. The start of a new financial year is a popular time for many individuals to make that move into self-employment. These loan opportunities for businesses without complete financials, may make that move a reality and set a strong foundation for the operation.
Assets Funded with Green Equipment Finance
The types of ‘green’ assets which can be funded are extensive and will depend on the specific industry and availability of suitable models. Energy efficient assets can include battery operated cranes and other machines, units that can be converted to alternate power systems, vehicles, systems and technology.
Battery and solar systems to power the business and the assets is a very popular way to beat high energy prices. These systems may include the acquisition and installation of charging infrastructure to support an electric fleet of vans, cars, trucks and machines.
Funding is available for both new and used assets. The same lending products are used, but different rates and conditions may apply with second-hand unites. To start budgeting to invest in energy efficient machinery, use our Equipment Finance Calculator for loan repayment estimates on different priced units.
Loans for Costs to Support Green Equipment
Depending on the industry and the type of business activity, investing in energy-efficient machinery may be just one stage of the process to convert the operation. An important consideration for many businesses can be training staff to operate and service the new machinery.
Battery operated units and vehicles can require different maintenance and servicing techniques and that may require additional training. Consultants may be required to advise the business on the most suitable systems and infrastructure. Specialist services may be required to install the required technology and systems.
Secured and Unsecured Business Loans and Business Overdrafts are available to fund non-asset business expenses such as staff training and consultant fees which would not be suitable for asset finance facilities. Rates may be fixed or variable and terms negotiated to best suit the individual business operation.
Tailored Green Equipment Finance Solutions
Each business will have its own individual requirements and objectives in moving to a more energy efficient operation. Individual requirements which mean individual financing solutions. We work with individual businesses to fully understand their goals and objectives and advise and source the most effective and affordable funding. Tailoring loans to target specific cash flow and ROI goals.
With our access to a large lending base, we have the resources to source special offers, rates and loan offers for businesses investing in green equipment. Businesses of all sizes can directly access our services and custom financing to invest in the assets they require for their operation.
To set up your business to beat high diesel costs with an investment in energy efficient assets, speak with Jade Equipment Finance 1300 000 003 about our Green Equipment Finance opportunities.
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.