LED lighting retrofit finance
Funding for LED lighting upgrades across warehouses, factories, retail units and car parks, where fittings, controls and installation are bought together.
Whole-of-market — 60+ lenders searched, including
Can you finance an LED lighting retrofit?
Yes, and lighting retrofits are financed frequently, but the fixture problem is acute. Once fittings are installed into ceilings, roof structures and external columns, they belong to the building and a funder is never going to send anyone to take light fittings down. On top of that, roughly half the cost is typically access equipment and electrician time. The decision rests almost entirely on the trading business and on whether you own the premises. Tenants need enough lease term left and usually a landlord waiver.
Used kit: No. There is effectively no second-hand market in commercial luminaires and funders will not lend against reused fittings.
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What would an LED lighting retrofit cost per month?
Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).
How lenders treat it
Lighting is the clearest case of value walking into a building and not coming out. LED fittings are cheap individually, become part of the structure once installed, and have no resale market whatsoever — nobody buys used luminaires. A large proportion of the invoice is labour, access hire and disposal of the old fittings, none of which is an asset. Funders accept this and simply underwrite the company: accounts, sector and payment history do the work. Property tenure is the second question, because a tenant with a short unexpired lease is asking a funder to back an improvement to someone else’s building. A landlord waiver is typically required. Where the retrofit produces an evidenced drop in metered consumption, that can support affordability.
Makes and models we fund
Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.
| Machine | What it is |
|---|---|
| Thorlux high bay LED fittings | Warehouse and factory high bay lighting |
| Thorlux SmartScan controls | Wireless monitoring and lighting controls |
| Zumtobel CRAFT LED high bay | Industrial high bay luminaires |
| Philips CoreLine high bay | Volume industrial LED high bay |
| Philips CoreLine LED battens and panels | Linear batten and panel retrofit |
| Philips CoreLine Waterproof fittings | IP rated wash-down luminaires |
| Zumtobel Scuba wash-down luminaires | Food and wet area rated fittings |
| Tamlite LED panels and battens | British supplied LED retrofit fittings |
| Tridonic DALI lighting controls | Daylight and presence control system |
| Thorn Areaflood Pro floodlights | External column and floodlighting |
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Who buys one
Distribution warehouses running high bays around the clock, food factories where lighting also has hygiene implications, multi-site retailers refreshing store estates, car park operators, and gyms and leisure centres. The trigger is commonly a maintenance burden from failing fittings that need a scissor lift every time, or a refurbishment where scaffolding is already going up and the access cost can be shared.
Get a quoteor call 07581 364281
How it is treated for tax
Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.
LED lighting retrofit finance questions
Is the installation labour financed as well as the fittings?
It generally has to be, since access equipment and electrician time often exceed the cost of the luminaires. Funders will fund the project as a package from one contractor invoice, understanding that they are lending against the business rather than against anything they could recover.
Can a tenant finance a lighting retrofit?
Yes, provided there is enough lease term left to make sense of the investment. Funders will ask for the unexpired term and usually want a landlord waiver. A short lease is a genuine problem here, because the fittings stay in the building when you leave.
Do funders rely on the promised energy reduction?
They take it into account rather than relying on it. Where metered consumption data before the works exists, a reduction is credible and helps the affordability argument. Suppliers’ headline figures are viewed sceptically, and no funder will approve a case on a projection alone. Your own bills are the most persuasive document you can send.
What about disposal of the old fittings?
Old luminaires containing lamps must be disposed of properly and contractors normally price this in. It is a cost with no asset behind it, so some funders discount it. Ask for it to be shown separately on the quote so there are no surprises at underwriting.
Can lighting controls be included?
Yes. Presence detection, daylight dimming and emergency lighting testing systems are usually part of the same installation and funded within the same agreement. They are fixtures like the fittings themselves, which does not change how the application is assessed. Controls are usually the part that delivers most of the benefit in daytime spaces, so they are rarely worth removing from the quote.
Get a quoteor call 07581 364281
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Not an offer of finance. All finance is subject to status, affordability and lender approval.
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Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 07581 364281 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.