One of the biggest areas of business expansion in the earlier 21st century is that of recycling and waste management.
Until the later decades of the 20th century, recycling was a fringe social activity which was largely restricted to alternative lifestyle practitioners. Similarly, waste management was perceived to be a largely logistical activity, typified by trucks taking waste to landfill sites.
By the end of the century, perceptions had changed hugely. Suddenly the environmental risks of such views had been realised and action started to be taken to change approaches towards ones that were designed to help protect the planet and us with it.
Recycling became a huge industry with a major involvement in Research and Development (R&D) looking for recyclable materials and better transformation methods. Waste management now has a multi-stream approach and “tipping” is no longer seen as the only option.
A Defra study in 2015 (covering 2013) showed that at that time waste management in the UK was contributing about £6.8billion to the economy and employing 103,000 people. By 2015, that figure had risen to closer to £12billion according to government sources, and it was growing at roughly 3%p.a.
This is a vast and growing industry sector and in view of government commitments to environmental protection, one that can only grow.
The challenge for participating companies
Some of the approaches and technology for recycling and waste management of the later 20th century now look very dated when compared to modern solutions. That applies to both their efficiency and Green credentials.
Having such dated approaches might severely affect your ability to compete for new contracts.
The investment in machinery and technology in this sector is high and needs to be so. That obviously has implications for capital funding, as processing equipment in both recycling and waste management is typically expensive.
Whether you’re a new entrant to the field or looking for an equipment upgrade, replacement or refurbishment, finding the capital may be a challenge.
That’s where we at ACF Direct are typically ideally positioned to help.
Your funding options
We’re committed to helping you to find a funding solution that’s suitable for your unique position:
- you may, of course, be fortunate in having extensive liquid capital reserves that can fund such investments entirely from your own resources. Do keep in mind though that using your own cash to fund such investments isn’t necessarily always the most cost-effective solution;
- bank loans. Always a theoretical possibility but the banks today may have a tendency to avoid direct loans for what they might see as high-risk enterprises;
- equity release. This is a very real option we may be able to assist you with if you have assets (buildings or property etc.) with equity in them. Equity is essentially the balance remaining once you deduct any debt on the asset from its realistic market value;
- business angels. Another source of funding we may be able to use to assist. These are typically wealthy individuals (or sometimes associations) who enjoy funding new enterprises or existing companies adopting radical new approaches including those in the recycling and waste industries. This category of funds provider is often more risk-inclined than others and that can be advantageous.
We have multiple funding options available and not all will necessarily be suitable for your particular circumstances and plans for recycling and waste activities.
We’ll quickly asses your position and then make some more targeted recommendations accordingly. Why not call us at your earliest convenience for an entirely informal and non-committal initial discussion?