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Lombard

mnadigital
Sep 16, 2014
2 min read

“When it came to funding the biomass system it was clear that an asset finance solution offers us the most economical means of funding. We chose Lombard as they showed not only specific knowledge of our company but also expertise in sustainable energy.” ~ Chris Oscroft, Owner, A E Oscroft & Sons Limited About A E Oscroft & Sons Ltd A E Oscroft is a third-generation, family-run presswork engineering company with more than 60 years’ experience. It supplies quality metal pressings, assemblies and prototype projects in a diverse range of materials primarily for the automotive industry. What did A E Oscroft want to achieve? As part of its expansion plans, A E Oscroft recently moved to a 56,000 sq ft property which is three times the size of the previous premises. The company operates to a LEAN policy and recognised that as part of this process it could reduce its dependence on fossil fuels, thereby control its energy costs and gain a competitive edge. As a result they took the decision to install sustainable energy technology. How did Lombard help A E Oscroft? Having considered the sustainable energy options, A E Oscroft took the decision to install solar panels and a biomass system. The company had a longstanding relationship with its asset finance company, Lombard, and when it came to acquiring the biomass system, A E Oscroft recognised that asset finance offered the most economical funding solution. Lombard’s dedicated green energy team was able to give the company guidance on the financials, how to apply for the renewable heat incentive (RHI) and also provided funding through hire purchase. As a result, the income generated from the RHI funds, the hire purchase payment acts as a kind of bridging loan. How has A E Oscroft benefitted from the solution? The new biomass system will provide significant energy savings for the business, while the RHI payments will generate an income for 20 years. The company’s working capital has been preserved while the payback is matched to the hire purchase agreement, following which the RHI will be pure income.