The recycling and waste industry is constantly evolving and growing. In 2019, the UK government is keen to promote environmentally friendly and cost-effective waste disposal solutions. Many businesses are still utilising dated equipment and machinery that is harmful to the environment; you will need to invest in new vehicles, equipment, technology and a bigger workforce to ensure your business continues to grow. These assets are generally very expensive and could have serious implications on your capital reserves.
There are many finance options available to your business. We recommend approaching finance providers that are both visionary and risk inclined. Securing a finance agreement will depend on the status of your finances at the time funding is requested; ACF Direct will assess your position and provide targeted recommendations, helping you choose the right finance method for your business.
Existing Liquid Capital Reserves
You may be fortunate enough to fund new or existing assets entirely from your own available resources. However, using your own cash reserves to fund large investments may not necessarily be the most cost-effective solution, and it is worth considering all the available options before opting to withdraw a large sum from your own liquid capital.
Banks provide various types of business loans. The benefit of such funding is that many banks offer quick loans, meaning you can promptly source and utilise new equipment or technology. You will be required to repay the loans over an agreed term, with added interest. However, it is worth bearing in mind that some banks may be reluctant to provide direct loans for what they deem to be “high-risk” enterprises.
Equity release allows you to access to the equity tied up in your existing business assets. Equity is the balance remaining once any debts have been deducted from the asset’s realistic market value. You obtain a large sum of cash, whilst still retaining ownership and usage of the asset.
A business angel is a third-party, high net worth individual who utilises their personal disposable income to provide funding to new enterprises. The advantage of angel investors is that they are more risk-inclined than other finance providers, and so this finance method is becoming increasingly popular in the recycling and waste management industry.
Whether you are a new entrant to the industry or require equipment refurbishment/upgrades, please contact us here at ACF Direct. We can provide you with expert advice and assistance throughout your funding journey.