The GreenYard has now developed its services to focus on helping the farming community to source finance and manage their project from start to finish. The key to obtaining finance is being realistic about what you can borrow and having a professional business approach to your project.
There are four possible options for financing your project; in Part One, we shall look at Bank and Asset Finance options.
- Loan to value less than 60% of total project cost at a rate circa 6%.
- Unencumbered security will be needed to cover amount borrowed. FIRST charge only.
- Affordability…..Future income from the wind turbine is generally not accepted in affordability assessment.
- Affordability cover….. Historically banks seek 130% cover meaning you need to show existing disposable income which equates to at least 130% of loan repayment.
- Asset Finance companies will finance 100% of the purchase cost of the asset(Wind turbine cost)
- In UK(England & Wales) asset finance is readily available at circa 7%. In NI very few companies offering asset finance and those that do are quoting 12%+
- Assets can be financed over a period of up to 7 years
- Provides a flexible way to finance the asset portion of project cost and can be very beneficial for cashflow.
In Part Two we shall look at the other two options for financing your own project.