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How business finance can help Extended Producer Responsibility

Extended Producer ResponsibilityThe UK’s waste management and recycling industry is taking huge steps forward. Constant evolution of legislation is bringing about real change in the sector, including huge leaps in recycling rates – and creating exceptional challenges for businesses.

With 19,000 people generating a turnover in excess of £11 billion, this is a substantial sector – and a critical one from an environmental standpoint, with responsibility for collecting and managing huge volumes of refuse. However, recycling rates have begun to stall due to global markets driving down prices in the UK system, most notably for recycled plastic.

At present, producer-manufacturers selling product in the UK have effective responsibility for funding additional recycling infrastructure via producer responsibility legislation that distributes funds across the sector. This will change profoundly with Extended Producer Responsibility, which will transform the sector – and the UK’s entire manufacturing base.

What is Extended Producer Responsibility?

In simple terms, EPR will provide incentives for consumers to collect material for processing, local and national authorities to direct material to recycling facilities, and producer-manufacturers to invest in new facilities and recycle and reuse refuse. In the latter case, the main inventive is the revenue that can be generated from such material, giving producer-manufacturers a sound reason to invest more heavily in new facilities delivering increased capacity.

How Cashsolv can help with EPR

Creating new recycling and reuse facilities will require huge investment from producer-manufacturers, and banks and mainstream lenders may be unable to appreciate the vast rewards that can be earned in the sector. Cashsolv are specialists in funding business growth, and we apply different criteria from banks, including a more streamlined application process.

For instance, we can offer asset-based finance, whereby you borrow against the value of your premises, plant or equipment. Because the borrowing is secured, interest rates are comparatively advantageous, enabling you to obtain the finance you need at a price you can afford.

We are deeply committed to the recycling and environmental sectors and will work closely with your business to understand and meet its financial needs. To understand what we can do for you, please visit our business finance page.

Carl Faulds By Google+ |
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