The Challenge
A large grocery store sought a way to reduce its energy grid consumption. They wanted a long-term finance option so they could pay their equipment off in line with the lifetime of the equipment and avoid hefty upfront costs while keeping the immediate benefits.
They engaged a broker to ensure they got the best deal possible, making it clear their priorities were that future instalments remain stable no matter the market and have the longest term possible.
The Solution
The tenant had a 10-year lease on the property and provided the landlord waiver at the time of application which, according to the grenke sustainability matrix, entitled them to an 84-month lease agreement. Plus, the nature of a lease agreement meant the payments remained the same throughout the lease, unencumbered by interest rate changes.
The broker knew efficiency was also key and that this deal fit under grenke's low-doc, meaning they'd have approval in under an hour if processed through grenke, and the contract could be signed immediately using grenke's E-sign capabilities. The approval came back swiftly, with contracts sent to and signed by the director within the hour. The system was installed early the following week, and the supplier and broker were paid within 24 hours of settlement.
The Outcome
The forward-thinking approach to this deal meant that the client's requirements were achieved, saving their company a credit crunch on their balance sheet and giving them ample time to make repayments.
The outlook looks bright for renewables. Digital batteries, E-Charging Stations, wind turbines and electronic bikes are just some innovations transforming the sustainability world as we know it. The right equipment to help your business grow is at the heart of it all.
If you have a client looking to update their equipment or expand to provide a more specialized service, grenke can provide financial support for most green equipment through leasing.
