Case Study

Renewable Energy Finance

Company —
Energy Provider
Business Type —
Renewable Energy Utilities
Requirement —
Solar Panels & Investment
Solution —
Asset Finance & Business Loan

Energy Business Tackles Fit-Out Costs With Solar Panel Finance

With a commitment to promoting sustainable practices and reducing carbon footprints, the business has earned a reputation for delivering high-quality renewable energy equipment and services to residential, commercial, and industrial clients.

The Challenge

As part of their dedication to sustainability, this business identified their own need to fit-out their warehouse with solar panels to harness clean energy for their operations. Additionally, they aimed to make improvements to their warehouse and invest in new equipment to expand their capabilities. However, undertaking these projects required significant upfront investments, which could strain their financial resources.

Finance as a Solution

To address the financial challenge and advance their sustainable green energy goals, the business partnered with Portman in seeking out tailored renewable energy finance. This would provide tailored solutions to finance any renewable energy projects.

Sustainable energy equipment

Solar Panel Installation and Warehouse Improvements

With the financial support the business was able to fit-out their warehouse with solar panels and energy storage equipment. This installation not only allowed them to generate clean energy for their own operations but also set an example for their clients regarding the benefits of renewable energy. Additionally, improvements to their warehouse infrastructure and new equipment, was funded through a commercial business loan. This enabled them to offer a wider range of services and meet the growing demand for renewable energy solutions.

Benefits

  1. Environmental Impact: Harnessing solar energy through the panel installation, significantly reduced their carbon footprint and contributed to a more sustainable future.

  2. Energy Cost Savings: The use of solar panels facilitated generating electricity, helping drive down their energy costs and improving their financial bottom line.

  3. Diversification of Services: With the commercial loan, they were able to expand their capabilities and operational efficiency, allowing them to deal with a larger customer base.

  4. Brand Reputation: Embracing renewable energy practices enhanced their reputation as an eco-conscious business, appealing to environmentally conscious consumers.
Renewable energy farm

Challenges for Renewable Energy Businesses and Solutions with Finance

  1. High Initial Investment: The capital-intensive nature of renewable energy projects can be a challenge for businesses. Finance options allow companies to make the necessary investments without depleting their working capital.
  2. Technological Advancements: The renewable energy industry experiences rapid technological advancements. Finance such as asset finance and equipment finance, enables businesses to keep up with the latest technologies and offer state-of-the-art solutions to their clients.

  3. Market Competition: In a competitive market, businesses need to differentiate themselves and demonstrate their expertise. Finance can help companies invest in marketing and promotional activities to showcase their offerings.

Benefits to Small Businesses Investing in Renewable Energy

  1. Cost Savings: Investing in renewable energy can lead to significant cost savings on energy bills, reducing operational expenses and increasing profitability.

  2. Sustainability and Brand Image: Embracing renewable energy practices enhances a business’s sustainability credentials, attracting eco-conscious customers and improving brand reputation.

  3. Government Incentives: Many governments offer incentives and subsidies for businesses adopting renewable energy, making the investment even more attractive.
Sustainable energy

Conclusion

The financial support allowed the business to advance their sustainability goals, improve their bottom line, and offer a more efficient business solution. This showcases the significant benefits that businesses can achieve by investing in renewable energy and how finance can be a valuable tool to overcome financial challenges and accelerate sustainability initiatives.

If you’re looking to spread the cost of your solar panels, wind turbine, energy efficient bio-fuel generator or battery storage facility, Portman can hep.

Partner with Portman, for a successful future

There are plenty of finance options out there for you, deciding which is right for you will take time and consideration. But why should you choose these financing options from Portman?

At Portman Finance Group we are focused on serving the needs of you and your businesses, and have been doing so for thousands of other businesses since 2007, raising over £1 billion in funding for UK SMEs. 

We take the time to truly understand your business and what you need, ensuring we secure the right funding for you. As both a broker and a lender, we can also offer financial options that others cannot. We promise you will have one point of contact from start to end, providing you solutions quickly, sometimes within hours.

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Hire Purchase

Hire purchase usually involves paying the VAT and a deposit up-front. Fixed monthly repayments are then made, affected by whether you pay off the entire loan over the term or chose a final balloon payment. The final option to purchase is guaranteed for a nominal fee, transferring ownership of the asset to the customer.

Hire purchase is well-suited for situations where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value and will not need to be upgraded.

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Lease Finance

Equipment leasing allows a business to acquire hard or soft assets without the upfront costs associated with large purchases. A lender purchases the item, the business then leases it through fixed monthly payments over an agreed term.

Typically, asset finance is provided for high value ‘hard’ assets such as machinery, equipment, or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering, or vending equipment, as well as premises fit-outs, furniture or even air-conditioning.

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Business Loans

Business loans are a way of borrowing money, which is repaid in monthly instalments, including interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital.

Business loans can be secured or unsecured. Portman typically provides unsecured loans which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made, these may be used in equipment refinance deals.

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Start Up Loans

New businesses often need an injection of finance to get them off the ground. Asset finance for new businesses allows you to focus on running your company and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.

Using finance for your equipment means that you preserve the credit card or overdraft for contingency and operating expenses when the unexpected happens.

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Equipment Refinance

If you recently bought a high-value item outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments including interest, whilst your asset earns you money.

If your business owns high value assets that are not currently on finance, subject to a valuation, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.

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Recovery Loans

Recovery Loans offer an excellent way of making sure your business gets back on its feet after the long-term effects of the pandemic and subsequent supply chain disruption. Businesses with turnovers up to £45m, including those who have previously benefited from the government’s CBILS, BBL or RLS, can apply.

Recovery Loans can be used for any legitimate business purpose or simply to provide cashflow. Rates are capped and the government continues to guarantee 70% of the outstanding balance, giving added security for lenders who are now able to consider finance for businesses who may have previously found it difficult to obtain.

Up to £2m can be borrowed on terms from 2 to 6 years. Your personal private residence cannot be taken as security.

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