Provider of commercial finance solutions Wesleyan Bank has launched a cash flow product for the renewable heat sector.
The RHI financing solution was formed following Wesleyan Bank’s partnership with Alterinvest Capital.
It provides advanced payment for government qualifying renewable heat incentive (RHI) projects.
RHI financing enables operators to access funding they need to invest in sustainable technology to comply with the government green energy strategy whilst optimizing cash flow.
Richard Baker who leads the RHI proposition at Wesleyan Bank said: “Improving cash flow can make a tangible difference to the success of renewable energy projects. Our solution aims to accelerate annual RHI subsidy income into one upfront payment, reducing the impact of short-term setup costs and is suitable for customer’s operating systems that have already achieved accredited status.”
The financing is available to any technology receiving RHI payments and it has been structured to assist renewable heat operators overcome technical, financial and commercial hurdles to make project commissioning and operations achievable.
Baker said: “The launch of this solution allows us to further help those investing in renewable heating. As an asset finance specialist, we are continuing to assist with initial equipment purchase and in some instances refinancing, however RHI Financing offers a unique advantage over other forms of traditional lending. The solution allows renewable heat operators to improve cash flow and short-term financial stability on an ongoing basis, after the initial investment has been made.”
“By improving working capital and liquidity, RHI Financing can also provide the necessary funding for reinvestment in new technology and offer greater predictability over monthly expenditure patterns,” he concludes.
In June Wesleyan Bank signed a £15m asset finance deal with DND Finance and extended an existing wholesale finance facility to include asset finance.
The additional £15m asset finance facility was in addition to the £20m wholesale finance facility which was agreed in August 2018.