Some bids for WRAP's eQuip leasing scheme and the 5.5 million recycling fund – both designed to boost investment in recycling – have been affected by poor backup information, it said.
Since its launch in February this year, the eQuip leasing scheme has attracted applications for recycling plant and machinery worth 5.8 million.
“As the recycling sector continues to expand there will be growing need for companies to lease specialist plant and machinery,” WRAP investment manager Tara Clair said. “However, banks can be reluctant to provide leases for newer technologies, especially in a sector as new and unproven as recycling.”
The eQuip product provides an operating lease facility that is a cost effective solution for customers that also offers security to asset based lenders, she explained.
And WRAP's 5.5 million Recycling Fund has also seen a great deal of interest from the sector since it was launched in October 2003. Fund managers Impax Asset Management said it was working with more than 40 investment opportunities.
“These include a number of entrepreneurs developing innovative proposals in the recycling sector, along with established businesses seeking to expand their recycling activities,” Impax senior investment manager Marion Bernard said.
But a lack of technological and market understanding among investors meant that the waste management industry had to be careful when making bids, she added.
Ms Clair said the sector could overcome the difficulties posed by the specialist nature of recycling by taking advantage of WRAP's free business development service.
“High quality business plans are needed to stand the best chance of obtaining funds,” she explained. “It's been disappointing that some excellent ideas submitted to the Recycling Fund have not been supported by a business plan that does justice to their true potential.”
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