Financing energy-efficient equipment for your business

Many businesses want to cut their energy use, water use or waste, and the right equipment can help. Asset finance can spread the cost of that equipment over time, so you don't have to find it all upfront.

What businesses commonly finance

• Solar and battery systems. Reducing the power you buy from the grid can lower running costs.
• Energy-efficient equipment. Examples include more efficient refrigeration, lighting, heating and cooling, and newer machinery that uses less fuel or power.
• Water-saving equipment. For example, irrigation systems and water recycling for farms and other primary producers.
• Waste reduction and recycling equipment. Equipment that helps a business reduce, reuse or recycle what it throws away.

Why finance it

Spreading the cost keeps cash available for the rest of the business. If the equipment lowers your energy or fuel costs, those savings can help offset the repayments. How much you save depends on the equipment, your usage and energy prices, so ask your supplier for realistic estimates and compare them with the total cost of the finance.

Things to check first

• Lender appetite. Some lenders have specific products or pricing for energy-efficient or renewable assets. Availability varies, so ask.
• The asset and the supplier. Lenders may look at the type, age and supplier of the equipment, and whether you own the premises where it will be installed.
• Tax and incentives. Tax treatment and any government rebates or incentives change from time to time and depend on your circumstances. Speak to your accountant before you commit.
• Total cost. Compare fees and any final payment, not just the repayment.

If you're planning an equipment purchase, send us an enquiry and we'll talk through the options.

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