Waste management and recycling equipment finance

Close Brothers Asset Finance has been at the forefront of recycling and waste management finance for many years.

The waste and recycling industry has undergone rapid evolution over recent years, with the green agenda creating a wealth of new opportunities.

Businesses across the sector are actively embracing the implications of environmental legislation, and exploring a variety of new revenue streams. But capitalising on new business opportunities often requires a significant outlay to invest in the latest equipment and tools, something which few firms have the cash reserves to do easily.

Close Brothers Asset Finance is here to help, with a team specialising in funding assets used by the waste and recycling industry. Working with you, they’ll find an affordable way for you to spread the cost of the equipment you need through tailored packages including Sale and HP Back, and refinancing.

We provide funding solutions for all types of waste and recycling assets, ranging from as little as £5,000 up to £5 million+, but we will consider all asset values.

Typical assets we finance include:

Recycling plants
Shredders
Crushers
Screeners

Handling equipment
Vehicles
Trucks and trailers

Bailers and wrappers
Processing plant
Containers and skips

Contact your industry specialist

01244 853459

Construction and Waste & Recycling

Unit D Telford Court, Chester Gates,
Dunkirk,
Nr Chester CH1 6LT

Finance products we offer for the waste management and recycling industry

Hire Purchase
Refinancing
Finance Lease
Operating Lease

Hire Purchase - Spread the cost over time

Hire Purchase enables you to acquire an asset while paying for it in instalments over an agreed timescale – the term. At the end of the term, you have the option to purchase the asset outright.

Hire Purchase lets you spread the cost of your investment over the life of the asset, making it easier to budget. Hire Purchase is particularly suitable for acquiring vehicles, machinery, construction and commercial equipment with a resell value.

Benefits of Hire Purchase

More time to repay - Spread the cost over the life of the asset
Seasonality - We can structure repayments to take account of seasonal fluctuations in your cash flow
Keep control - You are the owner of the asset for tax purposes and can normally claim capital allowances
Tax efficient - You can potentially offset your hire purchase interest and charges against pre-tax profits
Potentailly reclaim VAT on the capital cost (there are special rules for cars)

Refinancing - When you need a cash injection

Refinancing is a quick way to access the value of assets on your existing balance sheet and redeploy that value elsewhere within your business – for example, to fund a deposit on new equipment or unlock some working capital to ease cash flow.

Sale and HP Back is a form of refinance that can be used against most types of equipment, making it suitable for companies of all sizes, including sole traders. It works by us purchasing the asset and financing it back to you. Repayments are calculated in line with the income stream that will be generated by the asset and at the end of the refinance term, you own the asset.

This option applies whether you already own the asset or are using it under a finance deal with another provider.

Benefits of Refinancing

Efficiency - Uninterrupted use of the asset
Spread the cost further - We can take over the finance agreement you have with another provider and extend the term
Choice - Give your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements

Finance Lease - User benefits without the ties of ownership

Our Finance Lease arrangement lets you use the equipment you need without having to buy it outright. You pay us rent for the full use of it. The rental period (the primary lease term) is flexible and can be tailored to your usage needs and cash flow.

During this period, you will pay us the full cost of the asset, including interest.

Then, when you reach the end of the primary lease term you can choose to:

continue to use the asset by entering a secondary rental period
sell the asset and keep a portion of the income from the sale
return it to us

Benefits of Finance Lease

Low initial outlay - Quick access to the asset you need without a heavy upfront investment
Flexibility - Rental payments and lease periods can be designed to match your cash flow
Cash back - Receive most of the income from selling the asset if you choose to do so at the end of the lease
Tax efficient - Rentals can usually be offset against pre-tax profits
Reduce costs - Reclaim VAT on rentals

Operating Lease - Keep your options open

Similar to a Finance Lease, an Operating Lease allows you to rent the asset from us while you need it. The key difference between the two is that an Operating Lease is only for part of the asset’s useful life.

This means you pay a reduced rental because the cost is based on the difference between the asset’s original purchase price and its residual value at the end of the agreement.

You get full use of the asset for as long as you need it, without the burden of responsibility of disposing of it or recouping its residual value.

Benefits of Operating Lease

Low initial outlay - Quick access to the asset you need without a heavy upfront investment
Freedom - Full use of the asset without having to buy it outright
Flexibility - Option to re-rent, purchase or return the asset at the end of the term
Pay less - Rental cost is reduced as it is based on a percentage of the original capital cost
Off balance sheet funding
Reduce costs - Reclaim VAT on rentals