PacB Group // Consider Generator Finance to Avoid Undue Pressure on Capital Reserves

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Consider Generator Finance to Avoid Undue Pressure on Capital Reserves

There is no denying that, in recent years, the mains power upon which industrial, commercial and domestic users are so completely dependent, is no longer a facility whose continued reliability can be guaranteed. A seriously inadequate and aging power generation and distribution network and a limited allocation of funds with which to rectify these shortfalls have made it necessary for many South Africans to rely, instead, upon various means to generate their own electricity. For a large manufacturing plant, a hotel chain, a hospital or shopping mall, the cost of doing so might be prohibitive without suitable generator finance.

Unlike, new carpets, a more up-to-date photocopying machine or replacements for an aging suite of office furniture, a source of back-up or emergency power is indispensable. When power from the grid is interrupted, the consequences affect not just cosmetic issues and the quality of copied documents, but every aspect of a business – whether large or small. While the ability to remain productive is important to any business, productivity is a crucial component of manufacturing, mining and construction, and electricity is the lifeblood of that component. For a large business such as a car manufacturer, this could involve the purchase of more than one generator and obtaining finance from a bank is neither cheap nor any longer easy in today’s economic climate.

In order to proceed with a capital purchase, it will be necessary to call upon the company’s cash reserves. However, to do so could create complications in the event that such mission-critical items may not have been included in the current year’s budget. By contrast, leasing this type of equipment or meeting its purchase price by means of fixed and pre-agreed monthly repayments should allow its cost to be born from a company’s operating budget with just a minor adjustment or two. In practice, if the option is available and the interest rate is reasonable, obtaining generator finance could still be the better route, even when meeting the full purchase price may not present a problem.

Eskom’s load shedding programme with its schedule of rolling blackouts and continuing cable theft can be equally disruptive for smaller businesses, especially for start-ups and those that have still to establish themselves. Even when experiencing a relatively limited period without power, the resulting loss of income can often spell the difference between a successful future for a smaller concern and closing the doors for good. Given that the need for an alternative supply is now more essential than ever, the best possible option might be to finance a generator purchase or, alternatively, to hire one.

Whatever the choice, given the crucial role played by these machines, it will be important to ensure choosing a quality product and there is no doubt that the best way to be certain of this is to select one of the more widely acclaimed brands, as well as dealing only with a reputable supplier who has the required skills to install, maintain and, if necessary, to repair whatever unit you may select. You should certainly have no reason for concern when selecting a machine from an international icon such as Perkins, Volvo, Scania, and John Deere. When selecting a dealer, however, you can rely on the PacB Group for a professional service that starts with a detailed assessment of your needs in order to determine the best generator to finance or purchase that will ensure they are fully met.

More than a run of the mill dealer, our services extend nationally and into continental Africa. We have the skills and the facilities to design and construct gensets tailored to our client’s specific requirements and with programmable control panels to automate their action. Units are available for lease but, if required, we are happy to arrange affordable finance for your generator purchase through its banking connection.

For more information regarding our range of generators and the finance options we offer, simply contact us today.