The scheme helps recycling companies to lease the plant and machinery they need by guaranteeing its future residual value to the lease providers.
”As the residual values are guaranteed by eQuip, the finance provider is able to offer more competitive lease terms.“
– Del Dervish, South Herts Waste Management
There is 40 million allocated for the fund in total, and WRAP has just given the largest amount of support yet – 430,000 – for a new materials recycling facility (MRF) planned to serve Nottingham and Lincolnshire.
Based at Quarry Farm in Newark, the MRF is licensed to take glass, cans, plastics, mixed paper and card from about 200,000 houses. It has capacity to sort about 50,000 tonnes of material each year.
Initially plans are to take recyclable material from Epping in Essex as well, but Mr Thornton said South Herts Waste Management is planning to build a MRF closer to Epping at some point.
Equipment
The equipment leased through the eQuip scheme includes includes a Hidding conveyor costing 100,000 and a Stadler STT 2000 103 separator worth almost 90,000. A 51,000 BOA Continette II baling press and a 58,000 Nihot Combi separator has also been secured.
South Herts Waste Management was able to lease the equipment more easily, because the eQuip scheme means any risk that the equipment might lose value is transferred from the loaning company to WRAP.
WRAP's investments manager, Susannah McClintock, explained: “Historically, lessors have been reluctant to finance new technologies in unfamiliar sectors. eQuip provides access to lease finance for companies in the recycling sector helping them to expand their businesses.”
Del Dervish, South Herts Waste Management finance director, explained: “Being able to lease this equipment is a big help with cash flow and, as the residual values are guaranteed by eQuip, the finance provider is able to offer more competitive lease terms.”
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