Energy Advance - the first embedded finance solution for the UK energy efficiency industry
Energy Advance is the first finance product embedded in PAS Hub and ECO Surv, the leading software and data platforms for the property services and energy efficiency industry. By harnessing live job data, TradeBridge can track and value energy efficiency installers’ Work-in-Progress and give them access to immediate working capital of up to £5m. With funding secured much earlier in the project lifecycle, installers can cover cashflow shortages and invest to seize new growth opportunities in this fast-moving sector.
Funding challenges faced by
installers today
Qualified installers across the country are driving the retrofit programmes key to achieving the UK’s 2050 Net Zero targets. With government investment assured, the energy efficiency industry is experiencing sustained growth, which in turn offers installer businesses huge potential to expand. However, installers find their potential success constrained by slow payment terms, high upfront costs and limited finance offerings from traditional lenders.
The time from the job being completed, to being paid by the end debtor, can take up to 120 days. It’s a challenge for traditional lenders to fund this type of working capital, due to invoices not being raised until very late in the payment cycle. Traditional lenders only pay out after work is completed, certified, approved and then invoiced.
Embedded finance is a game-changer for entrepreneurial installers
TradeBridge has been financing the energy efficiency industry for over ten years. As experienced specialist lenders, working closely with industry experts and software providers, we have designed Energy Advance specifically for this sector, because it overcomes the pain points that enterprising installers suffer when trying to grow their business.
Installers working under the Energy Company Obligation (ECO) scheme must go through various stages of verification and compliance before a project is finally approved and they receive funding.
“Now we’re embedded in the software management platforms, we can immediately see when an installer has completed, certified and approved each job and make funds available at every stage,” TradeBridge Co-CEO Seb Miles explains. “The timing is crucial - it means installers can quickly access the value of their Work-in-Progress.” This is critical in enabling installers to invest in growth, as Head of Energy Advance Lee Webster points out. “Entrepreneurial installers want to invest in growing their businesses, not be constricted by upfront installation costs and a lopsided working capital cycle,” he says. “With Energy Advance, they can unlock more capital to invest in starting new projects, attracting more customers and building consistent growth.”
“Now we’re embedded in the software management platforms, we can immediately see when an installer has completed, certified and approved each job and make funds available at every stage,”
A unique, modern, and forward-looking approach
Unlike traditional lenders, whose facility limits are calculated on past financial performance and profitability, TradeBridge has a modern, forward-looking approach.
Because Energy Advance is embedded in the software management platforms used by installers, we can accurately assess the true value of their Work-in-Progress in real time. This allows us to offer a considerably higher amount of funding earlier in the working capital cycle than other lenders.
How Energy Advance works for installers
We capture Work-in-Progress in real time and immediately add its associated value to the installer’s credit facility. Installers can draw from the facility as and when they want, up to their credit limit. When payment is received from the debtor, it automatically reduces their balance.
The key benefits of Energy Advance for installers
- A revolving credit facility with drawdown whenever it is needed.
- Highly competitive rates that only apply to funds in use.
- Facility limits of up to £5m.
- No fixed monthly payments or early repayment fees.
- Installers only pay for what they use.
- UK-based support team who live and breathe the energy efficiency industry.
“Being able to unlock the capital in our Work-in-Progress sooner means we are already driving new business opportunities.”
“Entrepreneurial installers want to invest in growing their businesses, not be constricted by upfront installation costs and a lopsided working capital cycle. With Energy Advance, they can unlock more capital to invest in starting new projects, attracting more customers and building consistent growth.”
How TradeBridge has evolved to
deliver Energy Advance
“We’re in the business of embedded finance,” TradeBridge Co-CEO Seb Miles explains. “Our mission is to service high-quality, entrepreneurial SMEs operating in defined ‘ecosystems’ who are currently underbanked and finding their growth constrained.”
Having financed the energy efficiency industry via the Green Deal Providers, we have come to understand the funding challenges installers face. This experience, combined with our data transformation capabilities, has enabled us to develop a unique solution which offers installers finance earlier, faster, and directly. Creating the energy efficiency industry’s first
embedded finance product was a natural extension of our portfolio.
“Over the years, we have gained a thorough understanding of the pinch points for ECO installers and where they can struggle to manage their cashflow,” says Lee Webster, Head of Energy Advance. “Embedding our facility in the industry reporting software is the logical next step, helping installers to quickly and easily unlock finance, boost their growth and become more responsive in a dynamic market.”
Energy Advance will help the UK meet its 2050 Net Zero targets
Energy Advance is not only a game-changer for installers. We believe it will energise the industry’s contribution to the UK’s Net Zero obligations by helping installers to retrofit more homes with energy efficiency measures such as insulation, PV solar panels, air source heat pumps and other energy efficient heating solutions.
Installers are already benefiting from Energy Advance
Leading energy efficiency installers, Baxter Kelly Ltd, are already taking advantage of Energy Advance so they can focus on additional growth.
“We chose the latest financial facility, Energy Advance, from TradeBridge. The account portal is easy to use and we have control of our funds 24x7. Their on-boarding process was simple and quick to get up and running. Being able to unlock the capital in our Work-in-Progress sooner, means we are already driving new business opportunities.” Sam Paul - Commercial Director, Baxter Kelly Ltd
Take action today to unlock the value of your Work-in-Progress
If you’re a qualified installer, get in touch with an expert today to discuss what Energy Advance can do for your business. You’ll be dealing with UK-based experts in your industry.
Call +44 (0)207 313 8088
or email energyadvance@tradebridge.com
