Over recent years leading air conditioning manufacturers, Mitsubishi Electric and Daikin UK have introduced affordable and convenient finance packages to help customers spread the capital cost of their air conditioning installations.
Air conditioning upgrades can be a large investment but one that should pay for itself in the long term through greater energy efficiencies and reduced running costs. However, there’s still the upfront cost to consider where funds might not be readily available, or perhaps better utilized elsewhere. For qualifying companies, finance packages are an alternative that can provide significant cash flow and tax benefits.
So how does it work?
The process is really simple. Air conditioning contractors specify air conditioning equipment and prepare quotations for their customers in the normal way. Quotes are then submitted to the chosen equipment manufacturer’s finance provider to obtain a finance quote, consisting of regular, monthly payments spread over a number of years.
Daikin UK teamed up with Shire Leasing PLC last year to offer flexible leasing options. Applications can be made online and customers can get a decision within half a day.
Once an application is approved, Shire Leasing provide the air conditioning contractor with a purchase order for the equipment and installation costs and then the equipment order can be placed.
Finally, after the new installation is completed and signed off by the customer, the air conditioning contractor’s invoices are submitted to Shire Leasing for payment.
Mitsubishi Electric’s finance packages work in a similar way. The equipment manufacturer offers a range of lease and hire purchase agreements and again applications can be made online once your chosen air conditioning contractor has provided a quote for the works. 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.
“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.
Savings per year in running costs: £4,500
There are a range of ways to finance your air conditioning installations with numerous providers. If you have legacy equipment that is inefficient and expensive to operate, it may be useful exploring the options available to you.
Here at Advantage Air Systems, we have over 20 years’ experience in the HVAC industry. For all your air conditioning requirements, simply get in touch or call us on 01306 628282.