SPECIAL FEATURE
LED LIGHTING
SHINING A LIGHT ON SAVINGS Equipment Leasing Solutions explores why electrical contractors should embrace leasing for LED lighting.
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ED lighting is one of the most cost reductive technologies available to businesses and education establishments, due to its low energy consumption and the ability to integrate advanced sensors and controls into the installations. Despite this, many have still not transitioned to LED lighting. One mechanism available to contractors to help with this transition is offering customers a leasing option. Leasing enables the customer to spread the cost over several years, typically two to seven, allowing them to invest in the technology today without any upfront cost. The beauty is that due to the dramatic cost-saving nature of LED technology, in the majority of cases, the savings generated outweigh the leasing cost, therefore giving the customer an immediate return on investment. Here is an example of a recent installation funded by Equipment Leasing Solutions:
Project Value £189,350.32 + VAT – LED Lighting Retrofit £94,950.40 Energy saved per annum £37,733.32 Total repayments per annum Net position per annum £57,217.08 Net position over term £386,215.29
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As you can see, the customer still makes huge savings after the leasing repayments have been deducted from their annual energy savings, and the benefits do not stop there.
Leasing provides a number of advantages
• A clear path to savings: By leasing their LED lighting, customers enjoy fixed repayments, making budget forecasting more manageable. This predictability, combined with consistent energy savings, allows for accurate financial planning and streamlined operations. • Advantages for electrical contractors: Offering leasing options presents a unique opportunity for electrical contractors to expand their customer base and increase project volume. By providing a cost-effective and convenient alternative to traditional purchases, contractors can secure more projects. Additionally, leasing options allow contractors to differentiate themselves in the market, highlighting their commitment to providing sustainable and affordable solutions. • Swift payment terms: On completion of a project, your invoice can be paid within 24-48 hours by leasing funders, providing speedy payment. • Tax efficiency: Lease payments are 100% tax deductible against the customer’s taxable profits.
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How does it work?
By partnering with a provider such as Equipment Leasing Solutions, you can quickly and efficiently provide your customers with access to leasing options: • Contact the leasing provider to obtain a quote for your customer. • Your customer accepts the quote and agrees to proceed. • The leasing provider consults with the customer for the information required to get a credit decision. • If the customer’s leasing is approved, documents will be sent for signing. • You deliver/install the project. • The customer confirms the delivery/ installation of the project. • Your invoice is paid within 24-48 hours.
Conclusion
Offering LED lighting leasing options is a win-win proposition for both electrical contractors and their customers. Contractors can benefit from increased project volume and a competitive edge in the market. Meanwhile, customers can enjoy immediate ROI, predictable monthly payments and reduced operating costs. By embracing this innovative approach, electrical contractors can illuminate a path toward a more sustainable future, powered by the benefits of energy-efficient LED lighting. Equipment Leasing Solutions, els.lease
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18/07/2024 12:34