Loans for SMEs for Energy Efficiency Projects

A NEW finance facility has been launched to help UK SMEs to fund energy efficiency solutions, saving energy, costs and greenhouse gas emissions.

ReEnergise SmartEnergy Finance has been launched this week by independent and specialist financial services company ReEnergise Finance, and is a dedicated commercial funding facility for SMEs for energy efficiency projects.

The fund has an initial capital of £5 million, although it is perceived to have no "upper limit" according to ReEnergise. The typical loan to invest in energy efficiency projects and renewable energy systems is expected to be between £25,000 and £250,000 and is seeded by private equity fund manager SI Capital.

The financing has been created due to the demand among SMEs for access to specialist funding for energy efficiency projects and renewable energy .

As "banks are simply not lending to SMEs", claims Adam Hewson, Director of ReEnergise Finance. "We think now is the perfect time to launch our own 'intelligent’ finance fund, the first dedicated commercial finance business aimed solely at providing funding solutions for SME businesses seeking to become more energy efficient.

"Businesses are facing many challenges today. Increasingly for many, expenditure on energy has become or is fast becoming a critical factor in overall business profitability. The imperative is to reduce energy use and to consider how energy efficiency and cheaper, sometimes subsidy-backed, renewable energy generation can lower energy costs in the medium term.

"We have aspirations to become a serious challenger to the finance status quo in the UK and Europe, returning the finance market to sector specialist orientated banks and funders," said Hewson. "As we specialise exclusively in energy efficiency and renewable energy, ReEnergise Finance is well placed to benefit from this growth sector."

Picture of Pound Coins by wwarby reproduced under CCL.

Friday 6th September 2013

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