Greenlite Lighting Solutions Ltd, the UK’s leading low energy lighting solutions company based at Blackpool in Lancashire, is pioneering rental as a financial solution to funding lighting installations when carrying out major commercial lighting refurbishments.
The innovative approach to lighting supply taken by Greenlite Lighting Solutions Limited shows no sign of ending, with the company now offering leasing as a way of funding new energy saving lighting solutions. Lighting is a depreciating asset so Greenlite advises that it is a poor use of funds to tie up cash in this technology. Following an energy audit, Greenlite can propose lighting energy solutions that actually offer an immediate payback using leasing to fund the installation, rather than tying up cash and having to wait maybe 2 years before a return on that investment is achieved.
Leasing is 100% tax deductible, meaning it can be fully offset against corporation tax.
A spokesman from Greenlite commented “Would you buy a house for cash if you knew it was going to depreciate year on year? Or would you rent it, allowing somebody else to take the depreciation? Of course you would rent it, so why use up liquidity in your business to fund energy efficient projects and let these assets depreciate. It makes more sense to use cash for core areas of business, production machinery, staff, stock, etc.”
Greenlite are pioneering this approach to funding lighting projects and have already helped many companies fund projects where the capital expenditure has been an issue. The leasing costs are generally taken out of a revenue budget, meaning decisions can be made faster, giving savings on energy in a much shorter timescale.