WRAP Leasing Scheme Completes Biggest Deal Worth Over £430,000

The eQuip scheme set up by WRAP (the Waste & Resources Action Programme) to promote lease finance in the recycling sector has delivered its biggest deal to date, worth over £430,000.

The deal brings the total amount of lending arranged through the scheme to more than £1.5million and has helped South Herts Waste Management establish a Materials Recycling Facility (MRF) to support a kerbside collection contract for a local authority in Nottinghamshire.

South Herts Waste Management is leasing a turnkey solution to sort plastic, paper, glass and metal waste collected from private homes and businesses. Bank of Scotland Corporate is providing the lease finance with help from the eQuip scheme.

The equipment leased through eQuip includes a Hidding conveyor costing £100,000, a Stadler STT 2000 103 separator worth almost £90,000, a BOA Continette II baling press priced at £51,000 as well as a Nihot Combi separator worth £58,000.

"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" said Del Dervish, South Herts Waste Management's Finance Director.

For South Herts Waste Management, the eQuip deal marks the latest development in a successful period of growth that has seen the company establish recycling sites and services throughout the UK, turning it into a £20million-a-year business.

Good cash flow is vital to support the company's expansion aims and continued high levels of service. "The whole vision of this business is based on research and development, so we can introduce better ways of recycling more materials" explained Mr Dervish. "Our recycling percentages are often double those of other companies in the UK, and that is because of our approach and attention to detail."

"We invest in a lot of new equipment, updating and replacing machinery to keep ahead of the game. Leasing helps us to spread those costs. Unless you are very wealthy, one of the best routes open to you is asset finance when you are spending millions of pounds on new kit."

"Historically, lessors have been reluctant to finance new technologies in unfamiliar sectors," said WRAP's Investments Manager, Susannah McClintock. "eQuip provides access to lease finance for companies in the recycling sector helping them to expand their businesses.

"By guaranteeing the residual value of the equipment, eQuip makes leasing easier for both recycling companies and finance providers. As a result we have already provided guarantees for more than £1.5 million-worth of lease transactions, helping to provide much needed recycling equipment across the UK."

Other equipment leased through eQuip in the South Herts Waste Management deal includes a Synmet Natural Frequency feeder valued at almost £31,000, a BOA non-ferrous separator costing £35,000, two BOA sorting platforms worth £20,000 and £30,000, and a Synmet overhead magnet costing £15,000.