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Show me the money

The idea of leasing as an effective and affordable method of getting hold of necessary equipment is finally taking hold in the recycling industry. The Waste and Resources Action Programme (WRAP) has been running the eQuip scheme since earlier this year and companies are already reaping the rewards. Financial products are becoming increasingly prevalent and, in June, Siemens Financial Services (SFS) launched a waste and recycling finance solution aimed at helping local authorities and businesses to fund the recycling equipment necessary to meet the Governments stringent waste strategy targets.

According to SFS, the high cost of purchasing new recycling equipment means that many organisations have not allocated sufficient funds to ensure they meet strict recycling deadlines. For local authorities, failure to meet the targets could lead to a severe penalty, or even Government intervention. SFSs funding options are designed to help organisations in both the public and private sectors, by offering flexible leases, enabling equipment to be acquired with regular, fixed payments, rather than one-off outlays of capital. On offer are finance leases, operating leases or lease purchase depending on the clients needs.

Professor Sue Grimes, head of the Centre for Environmental Research at Brunel University, points to a number of factors that will affect company recycling budgets in the next few years. Not all organisations are aware of the material benefits of recycling or of the pressures of legislation requiring reuse and recycling of products rather than permitting their final disposal as waste. The European Landfill Directive requires major reduction in the amounts of waste being disposed of in landfill sites over the next 1520 years. The UK will not be able to meet the required targets of the directive without achieving maximum recycle of end-of-life commercial, industrial and consumer product materials.



Investment

SFS southern sales manager Peter Crawley says that the UK must now gear up for a much higher level of recycling and composting. With strict targets to increase recycling and composting of household waste 25% by 2005 and 33% by 2015 local authorities need to meet the Governments deadlines to avoid harsh penalties. However, this will require considerable investment.

This is where the new finance initiative from SFS can help ensure that all kinds of organisations, whether public or private sector, make the most of the budgets they have by spreading the cost of recycling and waste equipment over an extended period of time, rather than waiting until the last minute, paying potentially inflated recycling costs and possibly missing deadlines, he says.

According to Crawley, SFS is offering a range of flexible finance products that can help customers acquire the assets needed to help develop, grow and support their organisation.

SFS is working with suppliers such as the Geesink Norba Group, which provides a one-stop solution for waste transportation and equipment needs. Dave Thompson, Geesink Norba general manager, adds: It is in every companys own best interests to have a well planned and properly funded waste management strategy in place well ahead of the deadlines. The kind of equipment we provide is not cheap. You can be looking at anything between £12,000 and £20,000 for a waste compactor. Businesses that have not budgeted for this expense have two choices; they can wait and risk heavy fines, or they can lease. u

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