An increasing proportion of financial managers are incorporating "frozen capital" into total cost of ownership (TCO) calculations, according to Siemens Financial Services (SFS).
A previous SFS study showed that £2.4bn was "frozen" or tied up in assets, particularly in the healthcare and industrial sectors, leading to cash flow issues. Meanwhile other SFS studies have shown that businesses in industry, commerce and healthcare could often make savings of up to 25% through taking energy efficiency measures.
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The company says as a result, TCO models should take into account how to acquire and use equipment in a financially efficient way, as well as the full up front cost of ownership.
Darren Rive, head of energy efficiency financing for SFS UK, said: "The new TCO mindset, in our view, increasingly recognised the importance of incorporating frozen capital and energy efficiency in the TCO calculation.
"As a result of those calculations, many organisations are turning to asset finance techniques in order to liberate ‘frozen’ capital and afford efficiency equipment upgrades."
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