The scheme, which was launched by the Waste and Resources Action Programme last year (see letsrecycle.com story) aims to make it easier to lease equipment by reducing the risk faced by finance companies.
Because recycling is a comparatively new sector commercially, financiers have been reluctant to lend businesses money to lease new equipment. In the eQuip scheme, WRAP takes on the risk for finance firms, paying out in the case of the equipment value falling during the lease term.
The three original lending companies in the scheme have now been joined by seven more companies willing to take part, WRAP has said.
Susannah McClintock, WRAP's investments manager, said: “Having more lessors on board should result in more competitive quotes. In addition, there is the potential for these lessors to offer a greater variety of repayment options.”
Leasing
The lending firms involved now include Alliance & Leicester, Bank of Scotland, Barclays Bank, BNP Paribas, Broadcastle Bank, GE Commercial Finance, Equipment Financing, SG Equipment Finance, Singer & Friedlander Leasing, State Securities and Systems Rental UK.
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WRAP believes the UK recycling sector needs 6bn of investment over the next 15 years to meet its targets. The eQuip Residual Value Guarantee programme has the resources to underwrite risk for up to 40 million worth of equipment over four years.
Companies can apply for help through the eQuip scheme if they are involved in the recycling of glass, plastics, organics, paper, wood or aggregates.
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