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Hire Purchase - DK Logs

DK Logs

Suppliers of quality kiln dried firewood

DK Logs is a company based in Perthshire that supplies quality seasoned mixed hardwood, kiln-dried logs and kindling both on a national level and to the local rural community who are reliant on alternative and renewable fuel supply.

The business is pioneering Kiln Dried Firewood in the county. Their ready to burn logs come out of a kiln after three days with a moisture content that is reduced to around 15%. These logs have a longer, cleaner burn and their heat output is increased due to their reduced moisture content.

Keeping up with demand

David and Karen Wilson, the owners of DK Logs, had invested in a kiln drier and 96kW biomass boiler in early 2014, in order to provide kiln dried firewood to their customers.

The demand for the product was so high that by late 2014, they made the decision to invest in a second drying system, worth significant investment, in order to fulfill their rapidly growing orders.

Specialist funding for renewables

As both drying systems required large capital outlay, David and Karen recognised they’d need some help to fund their latest investment. They spoke with their financial adviser, Jamie Lindsay at Breadalbane Finance to discuss their options.

Having appraised the opportunity, Jamie decided that Close Brothers Asset Finance was the most suitable funder to consider the proposal, and so he set up a meeting with the renewable energy Sales Manager for the area, James Waterson.

The funding proposal was approved quickly and loan documentation supplied to David and Karen, noting the returns expected from the Renewable Heat Incentive (RHI).

Doubled client base

David Wilson from DK Logs said: “Not many companies will even look at financing something a little out of the ordinary like a biofuel system.  Jamie, our adviser, knew that Close Brothers are doing a lot of deals in green energy and so they were a really good fit for us in terms of their knowledge and experience.

“Working together, Jamie and James made the whole process very smooth. We put down a deposit of around 10% of the value of the equipment, and Close Brothers funded the rest. We took receipt of the system in December 2014 and within three months, we have already doubled our customer base.

“The second biofuel system has taken a lot of stress from us. Quality for us is paramount, and we are now assured that we can produce enough low-moisture firewood to meet rapidly growing demand.”

Jamie Lindsay of Breadalbane Finance commented: “Close Brothers Asset Finance really understand this market and the particular opportunity presented for this local thriving business.

“This business serves much of the local rural community and beyond where wood fuel is a key and important source of heat and hot water for both domestic and business applications. Their speed of response and quick decision making giving us and our client certainty is refreshing.”