LED and Solar technologies and interest in those markets is booming. The cost savings are tangible and the stability of much of the hardware has reached a level where its longevity can be relied on. Makeshift, flimsy equipment has, for the most part, disappeared and been replaced with extended warranties and well engineered products. Companies and manufacturers can save thousands of dollars by implementing the new energy saving systems but it takes capital to make those projects happen.
How much capital? Upgrades can range from a hundred thousand dollars to several million and, as we have experienced with our volatile economy, using cash reserves to fund them can be scary. It is well known that business lending has been constricted but not in all the available channels; many wholesale lenders and private investor groups are funding energy projects throughout the U.S.
So what do you need to do or have to get your new LED or solar program funded?
Financing Green Tech projects requires a little more attention to detail and a stronger credit than standard equipment. You don’t have to be strong in all the areas we reviewed but a weakness in one means you will have to have additional strengths in other key areas. The equipment itself will not serve as collateral and knowing that going in will help bring your expectations within reason. Commercial lenders, for the most part, are staying away from financing Green Tech but private investors are out there funding them every day but you have to be prepared to know what it takes to get approved.