Research from RBS and The Carbon Trust suggests that 20% of all operating costs apply to energy and, of that, 20% is wasted through inefficientequipment.These facts, coupled with growing legislative demands for better environmental performance (such as the Carbon Reduction Commitment), means it's time businesses invest in energy-efficient assets. At Lombard, our renewable energy asset finance solutions can secure the technologies you seek. Lombard can help your organisation by:

• Funding your energy-related technologies – we can fund assets individually or as part of a larger building retrofit project.
• Securing valuable funding – we are working with a number of leading Energy Services Companies (ESCO) to provide funding through Energy Performance Contracts (EPCs). These can bring you long-term energy and cost savings with no upfront investment required.
• Working with your professional partners – if you have engaged a consultant or property management company to help with your building projects, we can work with them and help you fund the investment.




• LED Lighting
• Biomass boilers
• Ground-source heat pumps
• Combined heat and power boilers (CHP)
• Solar panels
• Offshore wind-farm maintenance vessels
• Heating, lighting and air-control systems
• Building-management systems
• Voltage-optimisation units
• Smart metering

Procure Direct are able to help you not with just your LED lighting requirements, but we have the skillset and network to help source all the above solutions from the very best there is in the UK. Procure Direct work with some of the UK’s most well known providers and consultants.
* Security may be required and product fees may apply.




Own your asset while spreading the cost.

• Total control – the asset is all yours when the agreement ends
• Easier budgeting – flexible repayments help you budget and manage cash flow
• Interest choices – choose fixed or variable interest to suit your needs Security may be required and product fees may apply




Enjoy the benefits of ownership without potential downsides

• Low upfront costs – for a small outlay, the asset is yours to use straightaway
• Keeping things flexible – we can tailor your payments to match your cash flow
• Interest choices – you can choose between fixed and variable interest options Security may be required and product fees may apply




An operating lease from Lombard to reduce your asset risk and lower your monthly payments.

• Low upfront costs – for a small outlay, you can use the asset immediately
• Boost your cash flow – a fixed residual value reduces your payments
• Budget more easily – fixed payments help you plan and budget Security may be required and product fees may apply

Please find below a case study using the Lombard finance solution




Current Lighting
Yearly electrical lighting usage: kWh 332,482
Yearly running cost: £36,573.00
Replacement lamps, Scissor lift hire and labour costs: £1000.00

After LED installed
Yearly electrical lighting usage: kWh 125,128
Yearly running costs: £13,764.00

Savings detail
Annual savings: £22,809.00 in electrical lighting costs
Annual electrical savings: kWh 207,356
Annual labour and parts savings: £1000.00
Payback (ROI): 1.8 years

(Client opted for sensors fitted to each fitting, therefore we estimate a further 30% reduction in costs and electric used)

After 1.8 years the client has saved enough electrical lighting costs to cover the original investment, therefore they are cash positive and have actual savings per year of £23,809.00

The finance detail
Supply and Installation of LED lighting: £41,752 + VAT
Deposit: 10% plus the full VAT
Amount Financed: £37,576.80
Repayments: 1 x £946.93 followed by 35 x £1,155.93 p/m
Credit Facility Fee: £309
Option To Purchase Fee: £75 + VAT
Rate: 3.4% Per Annum Flat

The Credit Facility Fee is payable with the first instalment which is due within 10 working days of the agreement being drawndown (together with the deposit if not paid direct to the supplier) and the Option To Purchase Fee with the final payment. The lower initial finance instalment means that the net Credit Facility Fee payable is just £100. Each proposal is considered on its own merits with the rate reflected by the financial strength of the covenant. The above example is an 'average' risk rated customer.

The terms contained in this example do not constitute or imply a commitment to provide funding by Lombard, nor a representation that such funding will be made available. Any such commitment is subject to contract, credit approval and satisfactory due diligence and documentation.

Looking at the above, then the annual cost net of the initial deposit is £13,871.16. This compares with the projected annual saving in electrical costs of £22,809 meaning an overall saving of just under £9,000 per annum.

Why use finance? Many companies have cash resources and can meet the cost of the project without the need for third party finance. However, for long-term assets it makes sense to spread the financial cost and thus reduce the impact on working capital. 'Cash is king' remains a vital message in the economic climate and thus funding against known cost savings ensures cashflow is largely unaffected by the investment beyond the initial deposit (where the VAT is obviously recoverable). The customer retains all the risks and rewards of ownership - particularly important during the window of opportunity as Writing Down Allowances have temporarily been increased to £500,000 (to 31/12/2015). The above example is based on a fixed rate, Lease Purchase Agreement.

Who are Lombard? Lombard is the UK's leading asset funder for vehicles, plant & machinery, equipment, IT & telephony systems and Green Energy Projects such as LED lighting, Biomass, Wind Turbines and Solar panels. We have been trading for over 150yrs and are a direct business to business lender. Facilities are tailored to the customer's needs with nationwide coverage of Relationship Managers to help understand your business and deliver a solution that meets your needs.