Investing in an on-site nitrogen generation system can bring significant benefits to manufacturing facilities, including cost savings, improved operational efficiency, and a reduced carbon footprint. While the investment can be deemed large, there are a number of funding options that you could consider.
Before we dive into the specific models, let’s cover some fundamentals. When it comes to purchasing a nitrogen generation system (or any major infrastructure expense for your plant), a diligent approach is key to ensuring that your investment adds the most value. This is extra important if it’s your first time purchasing such a system. Be sure that you are understanding the specific needs of plant, within the context your business goals. This is key to making an informed decision
Step 1: Gain a Clear Understanding If the ROI (Return on Investment) on Your Nitrogen Generator
While the advantages of cost savings, supply control, and sustainability gains associated with a nitrogen generator are clear, it is important to quantify the specific KPIs you will focus on for your enterprise. Do this is by partnering with experts who can substantively support you in putting a business case. Assessing return on investment (ROI) and payback, conducting cost comparisons, and considering the implications of carbon footprint should be part of your evaluation. Work with a vendor who not only offers equipment but also demonstrates deep knowledge, enthusiasm, and commitment to your success with this type of long-term infrastructure investment.
Step 2: Explore Funding Options for Your Nitrogen Generation System
Based on the specific circumstances and operational objectives of your organization, different financing strategies will prove suitable. Here is an overview of a few methods and who they might be suitable for. (Remember, determining the specific business case for a nitrogen generator is a specialist job. We recommend scheduling a consultation with our team. We can conduct a comprehensive assessment tailored to your needs.)
Option 1: Pay in Cash for Your Nitrogen Generator
For businesses with comfortable cash reserves and a desire to avoid interest charges, a cash payment offers the advantage of full ownership without long-term financial obligations. By paying the entire amount upfront, you will secure your nitrogen generation system in a way that minimizes future expenses.
Option 2: Finance Your Nitrogen Generator Through a Bank
Financing your nitrogen generation system through a reputable bank or financial institution allows you to make payments over time, making it an attractive option for businesses seeking to manage their cash flow in the short to medium term. This strategy allows you to benefit from the system immediately while preserving capital for other operational needs.
Option 3: Lease Your Nitrogen Generator
Leasing your nitrogen generator will provide flexibility, allowing you to make regular payments over the lease period. This option avoids tying up capital and credit lines, making it particularly suitable for businesses who are just starting out, or in a lean cash flow period.
Option 4: Explore Energy Efficiency Payment Models to Fund Your Nitrogen Generator
Depending on your facility, you may be eligible for financing options that enable you to pay for your nitrogen generation system through the savings generated over a period. In this model you may not have to pay anything upfront, and you’d only pay for the nitrogen you use.
We can help you choose the right financing strategy for your nitrogen generation system and ensure that you are optimizing the benefit of cost savings. We offer flexible payment plans designed to meet the demands and specifications of our customers. Please reach out to our team of experts for further assistance via our contact page.