We understand that installing air conditioning equipment at your premises can be a big investment, with a substantial capital cost attached to it. Like all good investments, it should pay for itself in the long term through greater energy efficiency and reduced running costs. However, there’s still the upfront cost to consider where funds might not be readily available, or perhaps better utilised elsewhere.
The concept of paying for purchases via some form of credit is not a new one, from traditional bank loans and credit cards to tailored finance agreements. It provides a flexible way of managing payments over a period of time, especially useful for those ‘big ticket’ items. Many choose to enter into hire purchase or lease rental agreements with vehicle manufacturers as an affordable way of paying for their cars on a monthly basis.
In the same way, equipment manufacturer, Mitsubishi Electric is leading the way when it comes to providing finance packages for customers looking to upgrade or install new air conditioning equipment at their premises. Customers can spread the cost with a hire purchase or lease rental agreement over a number of years.
Air conditioning contractors like ourselves cost the project in the normal way and the finance agreement is handled directly with the manufacturer based on your particular needs. This means that subject to financial status, you can repay the cost of the installation and equipment i.e. ‘fixed asset’ over 1 to 5 years. Ongoing maintenance costs can also be included in the agreement. For qualifying companies, it is an alternative that can provide significant cash flow and tax benefits.
Mitsubishi Electric’s case study below clearly demonstrates how beneficial it can be for some customers.
CASE STUDY: Printer uses finance package to replace dilapidated oil heating
The company’s 20-year-old oil boiler was letting them down and spare parts were no longer available. Faced with a replacement cost of £14,000 and the additional annual running costs of £7,000, it was time to consider alternative options. The oil fired heating was replaced with a £12,000 Mr Slim air conditioning system. This was not only cheaper with reduced maintenance costs, it also provided a far greater level of energy efficiency, to help reduce energy bills, along with greater control in distributing heat more evenly.
Savings per year in running costs: £4,500
“The package presented from MELFinance made financial sense for us as a business, because it allowed us to achieve annual savings of almost £5,000 with monthly payments of just £220”, explains Heaton Press owner John Bardsley.
To find out more visit MELFinanceSolutions
There are many ways to finance your air conditioning equipment installations and upgrades with numerous providers. If you have legacy equipment that is inefficient and expensive to operate, you may find it worth your while exploring the options available to you. As air conditioning contractors, we cannot offer financial advice, nor are we experts, but we can put you in touch with some of our financial partners who are.
Here at Advantage Air Systems, we have over 20 years experience in the HVAC industry. For all your air conditioning requirements, please do not hesitate to contact us on 01306 628282 or simply get in touch. We’re always delighted to help.