A Biomass Boiler is a heating system that uses natural fuel resources to create heat for use throughout your business premises.
It is a great way to introduce renewable energies into the right business.
But financing a Biomass Boiler isn’t as straightforward as a new Tractor.
The DO’S of financing a Biomass Boiler
- DO use a reputable supplier
It is essential when researching who will be installing your biomass boiler that you use a reputable supplier that has been in business for a while.
For your own benefit that you can confidently rely on them and the lenders.
- DO where possible, choose new or nearly new
Lenders take comfort in new or nearly new anything, Biomass Boiler, or tractor.
They have a much better re-sale market; the asset won’t be too old at the end of the finance term and there is less chance of things going wrong.
- DO understand the ongoing maintenance and operational requirements
Like most assets, they need taking care of, so it is best to understand the maintenance requirements pre-installation.
The DON’TS of financing a Biomass Boiler
- DON’T purchase an old second-hand boiler
Lenders will consider second-hand Biomass Boilers, and in some cases the RHI can be transferred which means you have the opportunity to earn income depending on the term left.
But if the boiler is too old to begin with, it’ll be a risk factor for lenders as not only do they consider the age of the asset at the beginning of the finance, but they also consider it at the end of the finance agreement, so if you are looking to purchase a 5-year-old biomass boiler, at the end of your agreement, it could be 10 years old which may be too old for most lenders.
- DON’T use a new installer with no history
New Biomass installers with minimal trading history provide little to no confidence or security for lenders.
They like to see an installer has been around for a while, with a good track record and won’t disappear if something goes wrong.
Biomass Boilers aren’t the easiest of assets to secure finance for, but if you have a:
- Strong business
- Reliable and recognisable installer
- Well-priced new to new-ish Biomass Boiler
- Deposit available
Then it may be worth an enquiry. Contact us today to see how we can help.