INDUSTRY COMMENT
Why now is the best time to finance new air conditioning
As the government looks to encourage everyone back to work to try and help repair the economic damage caused by the COVID19
pandemic, how do building owners ensure that their Heang, Venlaon and Air Condioning (HVAC) equipment is working as it should to deliver controllable comfort and the correct amount of venlaon and fresh air?
Any building owner looking to invest in new or upgraded air conditioning, heating or ventilation can often find that the equipment installer will focus on how to choose modern, low-carbon solutions, that can also reduce running costs. They’ll also talk about different styles of indoor units and individual and centralised controllers. Whilst these are all important factors to take into consideration, the number one topic of interest for the building owner in the purchase of HVAC, will almost certainly be the overall cost, and the question will naturally arise as to how the business can finance the outlay.
A
For companies looking to invest in HVAC solutions, the options appear limited to the traditional model of a bank loan to help pay for equipment, or using working capital. However, in many scenarios, this can actually be an easy area to resolve these days, especially with a new approach to HVAC finance that avoids putting pressure on company’s cash flow, will ensure the contractors get paid quickly and is currently backed up by a new government loan scheme.
The right time for an alternative to CapEx
The introduction of the Government’s ‘Coronavirus Business Interruption Loan Scheme’ (CBILS), means that businesses could be eligible for an 80% guarantee on any loan taken out, and this includes loans to cover the costs of HVAC equipment. Clearly, many companies are facing a period of deep financial uncertainty and are feeling the need to be more conscious than ever of expenditure and financial investment. The CBILS scheme will be providing loans to small businesses affected by coronavirus, and highlights the necessity for many companies to access financial support to keep their businesses running at the moment.
At the same time, it has never been more important to ensure that HVAC systems are up to date, as efficient and low-carbon as possible, and that commercial spaces are able to keep employees safe and comfortable.
As offices begin to reopen and make their way towards a ‘new normal’, it is a good time to ensure these systems are working effectively, and that they also include the recommended levels of ventilation and comfort.
The CBIS scheme therefore provides reassurance to businesses that the majority of any investment at this time, is guaranteed by government. Couple this reassurance with alternative finance models for customers, which combine both the hard and soft costs of a HVAC installation, into one, easy monthly payment that doesn’t affect cash flow, and it is easy to make the case for an upgrade right now.
OpEx, cash flow and favourable repayments
With the right finance package, it is possible to purchase new equipment, such as a new ventilation system to increase airflows into spaces as employees return to offices after lockdown, without a hefty upfront payment.
Instead, the loan can be secured against the equipment itself and paid back with a fixed, regular payment – something that isn’t guaranteed with a bank loan. This way, businesses can upgrade HVAC equipment to deliver more energy efficiency and improve ventilation, without tying up cash flow – meaning a business can be more agile and adapt to uncertain circumstances with greater flexibility.
Advantages of going to a specialist funder
Whatever industry a business operates in, using a specialist funder will likely have benefits over a traditional bank. They will have expertise and experience in the industry, and function as a partner who truly understands the requirements, and are able to advise on the best possible routes to finance for your own individual business case. In uncertain times, this type of personalised relationship can offer the reassurance and support that businesses value.
Working in conjunction with lender Hitachi Capital (UK) PLC, Mitsubishi Electric has developed the MELFinance Solutions financial package to help businesses fund the cost of new HVAC equipment and the installation over two to five years of regular fixed repayments. This can allow businesses to manage their cash flows while still benefitting from the installation of market-leading, low-carbon technology.
Offsetting repayments against energy savings
Businesses are also able to reduce carbon emissions and running costs by ensuring systems operate in the most environmentally friendly way possible.
There is rarely a ‘one size fits all’ approach to take when it comes to investing in HVAC equipment, and individual businesses will have a variety of different circumstances and requirements.
However, there has never been a better time to look at the options available to increase internal comfort and improve air quality, whilst reducing both emissions and energy use.
By investing in their buildings in the most risk- averse way possible, businesses can rest assured that they are keeping as much cash flow within the business as possible, have the reassurance of a fixed monthly payment loan from an expert lender – AND the backing of an 80% government- backed guarantee.
Angela Rondeau is Head of Commercial Sales Network at Mitsubishi Electric
Further information on MELFinance, including a quick financial illustration can be found by visiting the website.
www.melfinancesolutions.co.uk Read the latest at:
www.bsee.co.uk BUILDING SERVICES & ENVIRONMENTAL ENGINEER SEPTEMBER 2020 31
nd, if they do need to look for an upgrade of ventilation or air conditioning, how can they fund it without affecting cash flow?
BSEE
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50
