041

Finance Lease Funding

Once the anticipated savings have been quantified these will form that basis of a calculation to see how this saving can be allocated for a short period to a funding partner to allow the client to unlock the full benefit of the asset whilst remaining at least cash neutral throughout the funding period and then enjoying all the benefits once this is complete.

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The client would benefit from new capital replacing assets and reductions to energy, carbon (and potentially maintenance) without the burden of any initial cash investment.

Typical project finance profile:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Capital 200,000
Energy Savings -56,000 -57,400 -58,835 -60,306 -61,814 -63,359
Rental 51,000 51,000 51,000 51,000 51,000
O&M 2,000 2,050 2,101 2,154 2,208
Energy Savings -56,000 -57,400 -58,835 -60,306 -61,814 -63,359
Net Annual Savings -3,000 -4,350 -5,734 -7,152 -8,606 -63,359

From this example the client pays for the assets over a five year term with a fixed rental. Asset+’s performance guarantee protects the savings to ensure that the scheme is cash positive from the outset with larger savings after the initial funding period.