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21 October, 2021

Scrappage scheme could give a £6.5m boost to motors and drives suppliers

13 October, 2009

The Carbon Trust is calling on UK suppliers of motors and drives to take advantage of a £6.5m sales opportunity generated by a recently launched scheme to scrap poor-efficiency equipment.

The Big Business Refit scheme is providing small and medium sized businesses with up to £100m in interest-free loans to replace old equipment and install new energy-efficient upgrades. Around £6.5m of this money is likely to be spent on motors and drives, the Trust estimates.
“Motors and drives have been one of the most popular choices of energy-efficient kit for businesses that have taken Carbon Trust loans in the past,” says Hugh Jones of the Trust. “Suppliers can increase their revenue by millions by making their customers aware of this funding and how to apply.”

The Big Business Refit was launched in September by Dragon’s Den star, Theo Paphitis (above), after Carbon Trust research revealed that more than half (52%) of British businesses don’t have the cash to upgrade old, inefficient equipment. The Trust says it is experiencing a 250% surge in enquiries about the loans, as more businesses become aware of the opportunity to cut their energy bills by scrapping old equipment.

The minimum loan size is £3,000, and the maximum is £400,000.  There are no arrangement fees. All loans are unsecured, interest-free and repayable over up to four years. The loans are designed to pay for themselves through energy savings, so once the loan is paid off, savings go straight onto the bottom line.

The Trust says that, on average, businesses save around £16,000 a year by replacing inefficient equipment. However, with larger projects, the savings can be greater. Loans are available for multiple projects costing up to £400,000.
The Trust cites case of the North East motors and drives supplier, Quantum Controls (previously known as Slater Drive Systems), which has sold nearly £50,000-worth of equipment paid for by interest-free Carbon Trust loans in the past five months.

“The Big Business Refit has made more businesses aware of the unnecessary burden that old motors and drives puts on their bottom lines,” says Quantum’s managing director, Kevin Brown. “With unsecured, interest-free funding available to help businesses replace old motors and drives, there’s a growing awareness among customers that, there’s no need to ‘make do and mend’.”
Steve Brambley, deputy director of the Gambica trade body that represents drives suppliers, points out that “a major benefit of the Carbon Trust loans scheme is that the energy saved by efficient motors and drives will result in significant cost savings to the end user. With a drive typically saving 20-70% on the energy bill, the repayments of the loan could be covered by the money saved in energy, which helps cash flow and results in long term savings.”
The Carbon Trust is offering free training to any supplier interested in the sales opportunity provided by the Big Business Refit. Suppliers can contact the Trust on 01865 885 873.

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