Hire-Purchase Finance (“HP”), On-Balance Sheet Finance Option
CorEnergy’s in-house commercial finance team offers a range of flexible HP funding structures for energy-efficient lighting projects. These ‘on-balance sheet’ finance products require no upfront capital investment and are structured over 3-7 years to allow for the project’s total cost (including installation) to be paid for entirely through the immediate savings generated.
One of the key benefits of progressing with a qualifying LED lighting project using HP finance (as opposed to alternative funding arrangements) relates to ‘ownership’ of the asset(s). The legislation around / accounting treatment of HP finance agreements allows for ‘title’ to be transferred at the end of the lease term with an ‘option to purchase’ during the term (at a discounted rate) should this be preferred. This form of financing also ensures that Enhanced Capital Allowances (ECAs) can be claimed.
Should HP finance be the most appropriate option for your organisation, CorEnergy will first and foremost design, supply & install a fully compliant lighting solution. Once the project has been commissioned, you repay a fixed monthly amount over a 3 to 7 year term. Where possible, we aim to structure the project so that the cost of the monthly repayments is smaller than the immediate savings generated, meaning that projects can be cash positive from the outset.
All of our projects are fully supported by market-leading manufacturers’ warranties in addition to a comprehensive on-site aftercare support package. At the end of the finance term, complete ownership (title) of the lighting equipment is transferred to you to reap 100% of the substantial future benefits.