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Your one-stop
financing resource

Upgrading your lighting has never been easier

Upgrade. Grow.
Stay competitive.

 

You want to upgrade, modernize, and grow your company. But big plans often require a cash outlay that isn’t readily at hand. Our team of lighting and financial experts can help you overcome investment hurdles by designing the perfect lighting system and crafting a financial plan that fits your budget.

Lighting Capital Financing

Why finance your project with Philips Lighting Capital?

Providing 100% financing for all equipment and project related costs, with no upfront investment

Upgrade your lighting system today
No upfront investment, 100% financing for all equipment and project costs

Providing 100% financing for all equipment and project related costs, with no upfront investment

Enjoy a net positive cash flow
Your monthly payments are completely covered by your energy cost savings

Providing 100% financing for all equipment and project related costs, with no upfront investment

Preserve cash and credit lines
Access the capital you need through our global network of financial partners

Providing 100% financing for all equipment and project related costs, with no upfront investment

Get the perfect lighting system for your business
We work with you to design a solution that meets your specific business needs and objectives

Which one suits you best?

Our perfect-fit financial services accommodate your business needs, protect your cash flow, and enable your business to grow. We can arrange the right financial structure for your organization—from a small-scale lighting retrofit to upgraded street lighting for an entire city, from a managed services contract to a complex public-private partnership.
1. Why does Philips introduce finance options to their customers?

To enable them to take advantage of new, more energy efficient Lighting technology without having to make an upfront investment.

2. Why should I lease equipment rather than purchase it outright?

When acquiring a car or a forklift-truck, it is very common to spread the investment over a certain period in which the vehicles will be used. Why should it be any different for assets like office equipment or LED technology? Leasing (or ‘financing’) lets you pay as you use the equipment, not on day one.

3. How do I know if financing is the right choice for my business?


If any of the following apply to your situation, we recommend talking to your local Philips Lighting Capital contact about a financing option that fits your company’s budgetary requirements:


a. The equipment you need will last for many years

b. You’d like to find a more efficient way to manage cashflow

c. You’re looking for off balance sheet financing and possible tax advantages

d. You want to finance 100% of the project costs

4. What is a finance lease?


Finance lease is a contract for the use of specific equipment for a specific period of time (generally 24-72 months) against fixed monthly payments that are agreed upon in advance. A finance lease generally combines spreading the investment over this time period, with the transfer of ownership upon making the final payment. The user (“lessee”) has the intention to become owner of the equipment at the end of the financing contract.

 

5. I understand the value of financing, but we cannot afford to incur additional monthly expenses


The Pay as you save plan is specifically designed so that your periodic payments will not exceed energy savings. We do this by matching the financing period with your payback period.

 

6. In case my house bank can offer better/comparable interest rate - what’s the added value that Philips can bring? Why shouldn’t I go directly to my bank, but to Philips Lighting Capital?


a. Will your bank finance these projects?

b. Will your bank allow non-hardware costs to be included?

c. Is there a down payment requested by your bank?

d. Is there any additional security required by your bank (e.g. personal guarantee)?
 

Philips cooperates with a number of financing partners, has a very good insight into market offerings and can probably achieve scale benefits from a large portfolio of projects. Lighting financing is on top of the existing working capital facilities (credit lines) with your bank, so that these remain untouched by the new lighting project. Still, if a customer prefers to arrange his own financing solution via a house bank, that is fine as well.

 

7. What are the criteria for the finance lease?


a. Minimum transaction size

b. Minimum and maximum financing period

c. Customer specifics like legal name, location, etc.

d. Financial health of the customer

 

8. Can I also spread payment over a longer term e.g. 8 years?

For most lighting projects such a tenor would be too long. Case-by-case it can be investigated for larger transactions/ lighting projects with long technical lifetimes.

9. How do I know if I will qualify for a lease? What are the criteria used for a credit decision (evaluating the financing application)?


a. Our financing partners make credit decisions based upon the customer’s ability to pay and their credit history

b. Our financing partners prefer to consider established businesses with a good credit record that have been in existence for a minimum of 3 years.
 

10. How long does the credit process take?


Provided we have all the required application and financial statements, credit decisions are generally taken within a week.

 

11. Do I need to submit financial statements with every application?

It depends how fast the customer’s financial situation is changing. If it is stable then there’s generally no need for additional submissions within the same operating year.

12. What happens at the end of the lease term?

That depends on the details of the contract. Our lease agreements include clear end-of-lease options that vary depending on the type of financing your customer requested. In general, a customer has three options at the end of the contract: buy the equipment (at an agreed price or at “Fair Market Value”), extend the contract by another year, or return the equipment. In a finance lease situation, it is common that the customer buys the equipment for a small/ symbolic amount.

13. Is the lease cancellable?


The lease contract is in general not cancellable for the term of the lease (24-72 months), unless there is a clear “early termination” clause including financial consequences agreed.

 

14. Can I add or upgrade products during the lease term?


Yes, equipment can be added on or upgraded at any time during the term of the agreement. Depending on the customer’s needs, this can be done using an “add-on” schedule structured to end at the same time as the original term or a different term.

 

15. Does equipment leasing provide tax benefits to my business?


Leasing is advantageous to most businesses in that monthly lease payments can be deducted as an operating expense, reducing your taxable income.*

(*Check with your financial advisor)

 

16. Who are your financing partners?


We work with several global banks and lease companies, who can provide a full range of financial products including standard leases. In addition, we can work with strong players in local markets.

 

17. What happens if the customer defaults on the lease?

Our financing partner will pursue legal remedies that are in the lease contract, repossess the equipment, and/or commence collection activities. Philips is not a party to these proceedings, since the financing arrangements are between the customer and the financing partner.
 
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