CCL Components has launched a commercial project finance offering to help installers overcome limits on available capital in new projects, enabling them to grow in size and capability.
The range of asset finance options can range from around £5,000 up to £1.5 million, which in itself is negotiable depending on the strength of the client's balance sheet. The offer is being supported by a small number of unnamed funders with CCL acting between them and the clients.
Paul Brooks Jnr, director at CCL Energy Group, explained: “We've got varied funders that are open to us because of the length of time that we've been in business so we're taking their finance and dealing with the process; the installer won't ever have to deal with the funder.
“We'll help the installer handle their project, they can buy all the kit from us, they can finance for their customer and it just makes their lives a bit easier; they don't need to go to brokers or the finance company themselves.”
The finance provider will carry out the due diligence on the company seeking the cash, while interest rates will vary depending on the strength of the company and the length of the deal. These can range from two to seven years and are paid back in monthly installments to reduce the total value of the project.
Shorter payback periods will be granted more attractive interest rates to ensure fast turnaround of projects, although Brooks added that there was no limit on the amount of projects that can be funded at the same time.
This agreement allows the lease owner to hold it as an asset on their balance sheet, which CCL says works well for businesses that don't want a capital outlay or large deposit. This is being offered to help businesses grow their capabilities following a difficult time for installers, as Brooks explained.
“We've always been planning to work towards this. We know that there's a lot of small to medium installers out there that maybe don't have the business background to know where to get finance or they've pigeon-holed themselves as a residential installer, as that's all they can afford to fund. As part of [this offer] we can help by supplying them but also help them to grow,” he said.
The project finance is only available to UK-based limited companies, subject to credit checks, with installers are able to apply for project finance on behalf of their end client.