Heat Pump Finance

Finance your heat pump

Financing a heat pump can be a cost-effective solution for businesses looking to upgrade to energy-efficient heating without facing the high upfront costs.

We work to provide tailored financing solutions that make it easier to access eco-friendly heating technology like heat pumps. With flexible repayment options, including hire purchase and lease agreements, we help clients spread the cost over time, which can be more manageable than an outright purchase.

What is heat pump finance?

Heat pump finance enables organisations to fund the purchase of ground source and air source heat pump systems using flexible solutions that protect business capital.

You can use specialist finance that spreads the cost of purchase and installation or leverage your existing assets to provide collateral to lenders. Through solutions including asset-based finance, asset refinance, and hire purchase, they all preserve your company’s capital reserves and can be adapted to your needs.

Your business may also become eligible for government incentives and grants by installing energy-efficient technology.

Different types of heat pumps

Air Source Heat Pump: Air source heat pumps work by transferring heat absorbed from the outside air to water to heat an indoor space, with the pump working via a ‘wet’ central heating system to heat radiators and provide hot water.

Ground Source Heat Pump: A ground source heat pump (GSHP) can generate four times the heat per unit of electricity unit, making them perfect for indoor crops, poultry farms and hay drying. Under the Renewable Heat Incentive, businesses could see an ROI within four years of installation because of lower electricity input

Heat pump financing options

Hire Purchase: With hire purchase, the cost of purchase and installation is spread across a specified amount of time, with you owning the asset once the payments are completed. There is an initial deposit to be made, which influences the amount paid on the monthly instalments, leaving you with some control on how much you pay monthly.

Asset refinance: Asset refinance uses the value of an asset that is currently owned by the business to provide a lump sum which would be used to purchase the heat pump. By selling the asset to a refinancer, the asset is then rented back to you. Then monthly repayments are made and once completed, you regain ownership.

Benefits of heat pump finance

Ease of budgeting - These options for funding heat pump systems allow you to preserve your company’s capital and maintain balance sheet stability.

Protects business capital - These options for funding heat pump systems allow you to preserve your company’s capital and maintain balance sheet stability.

Protect business cash flow – Purchase a heat pump with a financial agreement and keep cash in the business and invest into other areas.

Access to new assets - If you need to replace the heat pump or want to purchase new ones, you can use heat pump finance to access the funds.

How heat pump finance works

Heat pump finance is a valuable option for a business that is wanting to secure high value assets without the potential of that asset becoming a financial burden. Whilst you are not the owner of the heat pump at the outset, the heat pump can be used for business purposes. In the financial process, you can determine factors including the down payment, the term length and the monthly instalments.

Is heat pump finance right for your business?

If your business is considering moving to ground source or air source heating systems, heat pump finance will help you manage the cost and ensure that your company’s financial status is not compromised. With such an array of options available for funding solutions, it will appeal to businesses regardless of whether they can use an asset as security.

Applying for heat pump finance

MAF Finance Group works with a range of banks and other financial providers to deliver the most competitive and personal solutions for your business.

If you would like to receive a quote or gain further information, simply fill in the from an we will be in touch. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at enquiries@maffianancegroup.co.uk