SAF successfully supported the procurement of two solar PV projects for Nestlé with a value of £1.4M.
SAF worked in partnership with Schneider Electric to develop a bespoke 12-year cash-neutral finance solution that would help Nestlé procure the solar panels to aid them with their carbon reduction plan without impacting cash flow.
Nestlé is a Swiss multinational company which owns over 2,000 brands spanning 186 countries across numerous disciplines.
Nestle have several sites throughout the UK that could benefit from green technologies to reach their carbon reduction targets and make strides towards the government’s net-zero targets.
Due to capital being prioritised elsewhere within the business, there was a limited amount available for investment in green technologies, but Nestlé remained committed to taking steps to help reduce their carbon footprint.
SAF’s bespoke finance package provided a way for Nestlé to invest in reducing their carbon output, allowing them to make significant inroads into their carbon reduction plan, without the need for upfront capital investment while also not taking any money away from core business activities.
Procuring the Solar PV project through a bespoke cash-neutral finance solution meant Nestlé’s monthly repayments were equal to the amount they were saving through the project, mitigating the impact on their cashflow resulting in greater financial stability.
Nestlé also had the added benefit of utilising the government’s Feed-in Tariffs (FiT) which require participating licensed electricity suppliers to make payments on electricity generated and exported by accredited installations. This meant that they had a potential additional revenue stream from selling the surplus energy.
SAF supported Nestlé with developing a finance agreement that understood and overcame their financial challenges, allowing them to access the equipment they needed quickly and efficiently.
The cash neutral finance solution we provided also meant that the money Nestlé saved by the inclusion of the solar panels matched that of the repayment, so they were not out of pocket, ensuring capital was available for core business functions.
Our proactive communication with Nestlé and Schneider ensured that they both attained their desired resolution. Nestlé reduced their carbon footprint without the need for upfront capital and Schneider secured a sale that would not have been possible without the offering of a flexible finance solution.
Phil Dring, Head of Sales at SAF said:
“The project at Nestlé is a prime example of how multinational corporations can utilise flexible finance solutions to make effective changes in their business processes, reducing their carbon footprint.
Utilising SAFs cash-neutral solution eliminated the need to fund the procurement upfront, allowing Nestle to reduce their carbon footprint, making significant inroads into their net-zero strategy while maintaining capital investment into other core business functions.”
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