Danfoss Solutions has specialised in energy-saving solutions for manufacturing firms. Under its performance guarantee, Danfoss Solutions refunds clients if the savings are not realised.
The challenge for the Danish firm is that the customer is not required to pay until the savings are realised. In this way, Danfoss Solutions runs a high risk of non-payment.
In early 2010, Danfoss Solutions sold a utility cost saving project to a Mexican paper plant worth a total of USD 4.4 million.
The project promises large-scale utility cost savings and comprises hardware, software and training, including a utility management system with consumption metering. The large order value made it necessary to guarantee the firm's debts.