Leading the charge on renewable energy solutions, Optama Ltd is an installation provider working to help homes across Scotland drop running costs and make the green transition. Graham and Steven, both directors since 2020, have driven the business with exceptional customer service, cutting-edge technology, and the idea that everyone should have access to clean, affordable energy. Innovative services, however, require innovative financing. Read below to discover how this green-collar company has leveraged Lenkie’s credit facility for the last two years, ensuring that no home goes without clean, low-cost heating.

The cost of energy for all

Since 2013, government grant schemes such as the Energy Company Obligation (ECO) have driven a boom in work for installers. Designed both to improve energy efficiency in homes and tackle “fuel poverty”, these schemes funnel a consistent stream of projects towards businesses like Optama. Demand has only escalated with the global energy crisis, with heat pump sales almost doubling in 2021, and the government declaring to install 600,000 units by 2028.

And yet, the funding and cash flow gap has only worsened for SMEs in recent years. Between purchasing kit, installing on site, and running all checks through scheme compliance, businesses like Optama face high up-front costs but are forced to wait up to 4-6 weeks before they see any return on a single job. Without the funding to purchase more equipment and labour, installers can find it difficult to invest in growth and take on new projects.

How Lenkie helped

Grow Now Pay Later - Lenkie’s revolving credit facility - has resolved the cashflow problem over the last two years for Optama, providing a platform to pay suppliers instantly. Instead of waiting for customer payment to come through the door, Optama has been able to effectively tackle more jobs and build turnover. Repayments, in the meantime, are baked easily into the existing cashflow cycle, stretching as far as 12 months if needed. In an increasingly competitive industry, this ability to capitalise on volume opens the door to success.

Alongside revenue, reputation is just as important. Moving quickly on projects doesn’t just impress the customer, but also electricians, plasterers, joiners - all of which may need to be subcontracted through third-party providers on a regular basis. Able to pay these providers on time or ahead of schedule, Optama gains a competitive advantage in securing those relationships using Lenkie’s credit facility, ensuring that each job is completed to the highest standard.

Green futures

The winds of change for renewable energy are not expected to slow any time soon. The International Energy Agency has projected that renewable electric systems like heat pumps will completely outsell fossil fuel boilers by 2030, growing to a 50% share in the global electricity mix. Now more than ever, installers like Optama need continuous funding to drive this mission for reform, changing how we use energy for the better. We take pride in supporting this growth and look forward to what bright (and warm) achievements Optama has yet to reach.