With energy prices rising, businesses are looking at alternative options to reduce costs and improve their environmental impact. This anaerobic digestion facility came to Moorgate Finance to help them with a solar panel project.
The Challenge
Facing rising energy costs, the anaerobic digestion facility was keen to enhance sustainability and cut their long-term overheads. A solar panel investment was identified as a strategic investment that would not only bring long-term savings bit also support the company’s sustainability goals.
However, when they approached their existing bank for funding, the terms presented a significant hurdle. The bank proposed a 20% deposit upfront and was unwilling to offer a VAT deferral, tying up cash that the business required elsewhere. These rigid funding requirements made the project financially difficult to proceed with, despite it’s clear benefits.
Unable to move forward in these conditions, the facility turned to Moorgate Finance to find a more flexible and suitable funding solution.
The Solution
Moorgate Finance arranged a £265,000 funding facility, structured over a 7-year term and addressed all of the key challenges the customer faced with their existing bank. Crucially, the deal was secured with a 0% deposit and included a VAT deferral, eliminating the need for any upfront payment. This allowed the business to proceed with the solar panel installation without disrupting cash flow or tying up working capital.
Not only did this solution comfortably outperform the bank’s offer, but it also positioned the facility to benefit from significant long-term savings. The solar system is expected to pay for itself within five years through reduced electricity costs, continuing to deliver financial and environmental benefits well beyond the finance term.
The Highlights
✅ £265,000 funded over 7 years with 0% deposit
✅ VAT deferral secured, enabling the business to proceed with the solar project without tying up essential working capital
✅ The solar project is expected to pay for itself within five years
✅ The funding has helped support the businesses sustainability goals whilst reducing overhead costs
Give us a call on 01908 92 62 62 or head to www.moorgatefinance.com/apply-now to start the conversation.