Ultimate Finance provides £225k funding for innovative product
An innovative product, which can save up to 35% on energy bills, is proving to be so successful that Welsh company Energy Effective has agreed a £225k funding facility through Ultimate Finance so it can keep up with demand.
Eighteen months ago Energy Effective Ltd, which is based near Caerphilly, was appointed to promote and sell Hydromx Energy Saving Solution, a fluid which replaces water in heating and cooling systems.
It has since supplied a national facilities management company, an NHS Trust, and a major Welsh Housing Association and has a number of large contracts in the pipeline.
It also beat more than 100 companies to win a UK-wide competition to reduce energy consumption at the Royal Bank of Scotland’s headquarters.
To help ease the strain on cash flow caused by the success, Ultimate Finance has provided a £100k trade finance facility to buy a large quantity of additional stock of Hydromx plus a £125k invoice finance deal to free up cash in outstanding invoices.
Speaking about the success, Mark McGavin, managing director of Energy Effective, said:
“It has certainly not been achieved overnight as the British are not keen on change. However, as soon as we started to receive testimonials from a number of high profile companies, people started to believe that Hydromx really could save them a significant amount on their energy costs.
“When we won the RBS national energy saving challenge it was the icing on the cake and we are currently looking to negotiate a roll out contract across all its branches.”
As with all good ideas, application of the technology is straight forward. Hydromx is a heat transfer fluid designed to replace water in both commercial and domestic heating and cooling systems. The fluid heats up quicker, carries more heat as it circulates through the system, then releases it quicker. In concert with the thermostats this changes the whole dynamics of a heating system saving energy. In ground source heat extraction Hydromx dramatically increases efficiency.
Mark continued:
“It would have been extremely difficult, if not impossible, to fulfil the orders without the help of Ultimate Finance.
“Mark Bennett and his team were quick to respond, having seen the potential of the product. He identified that we needed a facility to purchase the stock, as well as enabling us to receive cash for our invoices as soon as they are issued rather than having to wait up to 45 days for them to be settled.”
Mark Bennett, regional director of Ultimate Finance, said:
“Mark and his fellow directors have worked tirelessly to communicate the energy saving properties of Hydromx.
“It is a great product which is now being used by leading companies. They have a tremendous success story on their hands and we are delighted to provide the funding to help them build on that success.”
Photo caption: Mark Bennett, regional director of Ultimate Finance and Mark McGavin, managing director of Energy Effective
