Recycling equipment leased through WRAP's RVG scheme
A Lancashire waste management company is the first to lease recycling equipment using the eQuip Residual Value Guarantee (RVG) scheme set up by WRAP (the Waste & Resources Action Programme).
Wyre Waste Management, based in Fleetwood, has secured a five-year operating lease with Bank of Scotland Asset Finance for aggregate crushing and screening equipment worth £220,000.
"The opportunity to lease this equipment came at the right time for us and really helped financially," says Ian Drury, a partner in Wyre Waste Management. "If the eQuip scheme had not been available, we would have had very limited financial alternatives.
"Grants were not available and buying was not an option as we could not afford a big initial outlay of capital. Hire purchase wouldn't have helped us either as we would have needed a large deposit which we could not afford."
The two pieces of equipment leased to the business were a screener and crusher supplied by Extec Screens & Crushers Ltd.
Wyre Waste Management takes in construction demolition and excavation waste sourced from building sites and local authorities across the Fylde coast. The company will use the new equipment to crush and segregate aggregates to various grades. These aggregates will be recycled for use in construction, roadways and restoration works.
"We are delighted to announce the first leasing deal secured through the eQuip scheme," says Tara Clair, WRAP's Investment Manager. "Historically, it has been very difficult to lease equipment in the recycling sector as banks and other lenders are often reluctant to look at technologies they are not familiar with.
"Under eQuip, WRAP has set up a panel of lessors," she explains. "When WRAP introduces applicants to them, we agree with them a residual value for the asset in question so that they can calculate competitive repayments, safe in the knowledge that, if the worst happens and the machinery depreciates more than expected, we'll make good any shortfall."