When you pay upfront with your own capital, you benefit from zero ongoing commitments, credit applications, or financial disclosures. However, projects are subject to yearly capital budgets and internal return-on-investment requirements that complicate project approval. Paying upfront with your own capital is best if your business has minimal capital restraints.
Is limited capital preventing you from taking advantage of good sustainability investment opportunities?
Integrated energy solutions are as necessary and accessible as they’ve ever been. Capital budget constraints are one of the top roadblocks delaying companies from pursuing equipment upgrades in line with environmental, social, and governance (ESG) initiatives. Even for companies with healthy capital availability, sustainability investments are often competing with strategic priorities that are closer to the core business.
At SitelogIQ, we connect businesses in various industries with commercial financing options tailored to their specific needs. Our goal is to remove capital constraints as a roadblock to critically important ESG progress.
If your business has capital concerns preventing it from undergoing ESG changes, it’s best to face them with speed and intention. The longer projects are delayed, the more waisted operating expense you will never get back and project costs will continue to rise.
Completing high value projects as quickly as possible across your portfolio is by far the best way to maximize value, even if you use third-party capital.
Rapidly deploy sustainability projects across your portfolio. No capital outlay required.
Energy project financing helps businesses put ESG initiatives into motion. Because numerous financing options are available, you can align your company’s precise energy requirements with its financial objectives while choosing the level of risk you’re willing to embrace. Ultimately, energy financing will help you begin and deliver on energy initiatives by:
- Accelerating project implementation.
- Overcoming false starts and delays.
- Embracing more of the efficiency projects that would benefit your business.
We help our clients navigate four flexible commercial financing solutions.
Which Financing Option is right for me?
By financing energy equipment with a lease-to-own model, you enter a three- to five-year term that makes your ESG solution available with minimal upfront costs. Lease-to-own payments are predictable and easy to plan into your budget. However, this model requires a credit application and term commitment. Lease-to-own is ideal if your business is confident in the project’s return and wants to preserve capital for other immediate investments.
Under an energy-as-a-service (EAAS) model, your business will pay a subscription fee for its sustainability technology. The subscription comes with little to no upfront costs as well as a shared savings model that reduces risk and ensures positive cash flow. Your business will need to undergo a credit evaluation and commit to a seven- to 10-year lease to apply. The EAAS is best for businesses hoping to mitigate risk or avoid additional debt.
Commercial property-assessed clean energy (CPACE) is a borrowing model with a fixed payment structure based on the property tax bill. CPACE is usually a 20- to 25-year term that ties to the property, meaning it transfers upon sale. CPACEs are available without upfront costs or credit applications. You may consider a CPACE if you’re looking for low costs and are willing to commit to a longer payback period.
Choose SitelogIQ for Energy Financing
SitelogIQ is a team of experienced, structure-agnostic ESG project financing consultants. Because we are not a financier, we will listen to your situation and provide unbiased insight to help you fund sustainability projects that benefit your business. Our experts recognize that acting quickly is the key to maximizing your project’s value, and our teams have saved over 2 million hours on client projects. We’ll connect you with the right financial solution that will help you get your project off the ground without delay.
If you’re ready to secure the financing you need for an ESG project, contact SitelogIQ online to discuss your energy needs and capital availability.
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