Every type of finance for the Waste and Recycling industries

Waste from households, biodegradable municipal waste, packaging waste, construction and demolition waste, commercial and industrial waste - they are all on the up.

As a waste and recycling business, that means growing opportunities for you, but only if you have the vehicles, equipment and facilities to deal with growing volumes and growing legislation.

Of course, it’s not just the mountain of waste and rules and regulations that challenge your business. Fluctuations in recyclate prices, increasing costs for landfills, energy prices that negatively impact Energy from Waste (EfW) and landfill gas operators (LFG) will make efficient new technology and techniques essential.

At Rangewell, we can help, by providing the funding solutions you need to answer all the challenges your waste and recycling business faces.

Asset Finance - providing the vehicles and equipment you need

You will need vehicles equipped with the latest emission and environmental standards. From light vans for city collections to articulated HGVs, all will need handling machinery and environmental protection.

You will need conveyors, lifting equipment, waste baling and compacting machines at your depot, and specialised processing equipment for various waste streams.

You will need skips and silos, and enclosed processing areas.

You will also need office equipment and IT – your business will depend on efficient electronic communications.

Asset Finance solutions let you spread the costs of your vehicles and other equipment.

They include a range of funding types, but all can have two major advantage over other types of funding. First, the finance is secured on the assets themselves - meaning the lender can repossess them if you don’t keep up repayments, reducing the risk to them and consequently the costs to your business.

Second, Asset Finance helps you spread costs, letting you acquire the equipment you need immediately and repaying the lender while your equipment is already working for your business.

Hire Purchase

Hire Purchase works exactly as it sounds. You ‘hire’ your vehicles and plant until you’ve paid enough to ‘purchase’ them.

Arrangements generally last between 6 and 60 months. You pay a deposit plus fixed monthly instalments for the agreed term, after which the assets become yours.

With HP, you can pay for the equipment you want for the long term. It may be better suited to equipment with a long life, such as office equipment rather than vehicles which will suffer from wear and tear.

Leasing

Leasing gives you flexibility. You are renting the vehicle or another asset, and can regularly upgrade it as you need to. With some leasing arrangements, you have the option to have maintenance and insurance included.

Leasing may be appropriate for high-cost items, such as vans and forklifts, which may otherwise be difficult to afford.

Contract Hire

Contract Hire is another type of Asset Finance arrangement often used for new vehicles. It lets you budget ahead in and avoid the risks associated with vehicle ownership – like maintenance costs and depreciation.

You set up a contract with a finance company which will buy the vehicle you need and hire it to you for a fixed period with an agreed mileage. They will be responsible for maintenance, and will simply take back the vehicle at the end of the contract.

Payments are calculated on the purchase value less the estimated value of the vehicle at the end of the agreement. This helps keep your monthly repayments down because the vehicle will be sold on by the finance company. You are, in effect, financing the vehicle only for the time when you are using it.

At Rangewell we can help find funding solutions based on Asset Finance for all types of vehicles and equipment, both new and used, including ULEZ Vehicle Finance.

Funding for your premises

You will need a secure processing and loading facility in a location which is convenient for your customers.

If you can find an ideal site, you could consider buying your premises. A Commercial Mortgage will let you spread the cost of buying over 20 years or more and allow you to improve the site to fit your needs. It could also actually reduce your monthly outgoings. Some lenders have a minimum of £75,000 or more for Commercial Mortgages, but there is no set upper limit.

If you already own your premises, they can be a source of funding. Taking out a Commercial Remortgage on your depot might be a cost-effective way to raise funds to use elsewhere in your business.  

Working Capital Finance

The early days of any business are challenging. As its name suggests, Working Capital Finance is designed to boost the operating capital available when your business is not generating sufficient capital itself. It's often used to provide cash to pay staff and operating costs while business is slow during the early stages, or during a period of growth when your cash flow is already stretched. It is usually designed to be repaid in the short- to medium-term, once your business is established and running.

Invoice Finance

Taking care of the waste needs of a large corporate customer could help your business succeed, but many large organisations can be slow at paying. You will have people to pay and overheads to deal with.

Invoice Finance can provide an answer, allowing you to get paid up to 90% of the value of each invoice you send as soon as you send it, and the remainder when your client pays.

It means your cashflow can keep pace with the amount of work you are doing, and helps support growth – because you will always be able to take on more work, secure in the knowledge that you will be getting paid, fast.

Business Loans

You may have other costs to deal with. We can help you arrange Business Loans that can let you deal with them.

Unsecured Loans

Unsecured Loans are like personal loans, but based on the creditworthiness of your business, and don’t involve holding any of your assets as security. Loans are repaid in monthly or quarterly instalments over an agreed term, usually under 5 years.

Modern lenders can provide fast unsecured lending, but you might need to provide a Personal Guarantee.

You usually can’t borrow more than one month’s turnover without security, and most Unsecured Finance providers will not lend more than £250,000. For a new business operation, many lenders might only be prepared to offer a Secured Loan.

Secured Loans

Secured Loans are ‘secured’ because the lender will require security in case you cannot pay the loan back. This could be your home, or your business premises.

Providing this security means that the lender can give you longer to repay, and lower interest rates. This means that monthly repayments can be easier to fit in with your cashflow, and it may be possible to borrow large sums of money if you can provide suitable security.

Along with funding for key business items, we can provide solutions which will help you smooth your cashflow.

Tax Loans

Tax is an issue for every business. A large quarterly VAT or annual tax demand can cause problems for your cashflow, particularly when it falls at the same time as other costs.

Tax Funding is available to let you spread the cost of your tax demands into affordable monthly payments. This will help ensure that you can avoid cashflow problems, and makes it easier for you to budget ahead - and avoid trouble from the taxman.

Overdraft Replacement

Overdrafts used to be the most common form of everyday business funding. They were provided by your bank, and your overdraft facility would be agreed as part of your business banking arrangements.

Your bank would only charge you for the cash you withdrew, and for the time you used it.

But when the credit crunch hit, the banks reduced or removed the overdrafts they extended to small businesses - leaving you with no way to access funds for the short-term.

Fortunately, there are a number of new funding solutions that can help offer the easy access to short-term funding that used to be provided by overdrafts. The simplest of these is Revolving Credit, also known as Overdraft Replacement or Alternative Overdraft Funding.

Alternative Overdrafts are provided by a number of lenders, and offer instant access to funds, just like an overdraft, although no bank account is involved.

Instead, the alternative overdraft provides a line of credit with a limit agreed when you apply. This limit is usually based on your past income.

It is then up to you how much of this reserve of credit you draw down. Like an overdraft, the facility will only mean a cost to you when you actually use the facility, based on the amount you draw down, and the time which you hold it. You can repay at any time, and the funds will be ready for use again.

This can be a useful additional source of funding if you need access to small cash sums for short periods. If you want to fund growth or to deal with temporary cashflow shortfalls, it can provide the ideal solution.

Major development funding

You need more than a waste transfer centre to run a profitable business. Processing plants are growing larger, and for major high technology ground-up developments you may need a more complex finance arrangement. Development Funding can let you build the premises you need, and may be able to provide for the cost of land as well for construction.

Lending arrangements can include a roll-up of interest and associated costs into the loan, leaving you with no funding to find until your investment in your business starts to provide returns.

Growth Capital Funding

This is finance on a large enough scale to support very large-scale business growth plans - but based on borrowing, which means you won’t have to sacrifice equity in your business.

Growth Capital Funding is a type of private equity investment, structured as a minority investment. Growth Capital Loans are technically Mezzanine Finance and can work alongside additional senior debt facilities. They can provide sums of £5 million or more for terms of up to five years, with interest paid quarterly or rolled up and capitalised - essentially providing the benefits of a major investor, without the usual risks of loss of control.

They could provide advanced facilities such as anaerobic digestion and MBT that your business needs.

'Jigsaw' Funding

There are many types of business funding - but no single type of funding will provide the ideal answer when your waste business has complex needs. The answer can be Jigsaw Funding, a bespoke funding package designed around your needs and made up of the most appropriate type of finance for each purpose.

So your business might call on Jigsaw Funding made up of Asset Funding for equipment, a Secured Loan or Commercial Mortgage to acquire premises, and a cashflow solution based on a Short-Term Finance.

The most appropriate source of each type of funding may be a different lender - making this type of funding difficult to arrange unless you call on our services. We work with all types of finance providers from across the entire UK lending market. We can select the most appropriate types of finance for your needs, use our unique online tool to find the provider offering the most competitive rate - and provide the funding you need with a single predictable monthly repayment.

How we help you capitalise your waste and recycling operation

At Rangewell we work across the entire lending market, and we have finance experts with personal experience in the needs of the waste and recycling industry.

This expertise works for you. Our team knows the lenders who specialise in the sector. It means that we can help you find the most competitive rates for all types of finance solutions – from both the established lenders, and the new Alternative Funding providers.

Call us now to see how we can help you raise the finance you need.