Sustainable financing practices for SMEs

Last reviewed on March 25, 2024

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Sustainable financing is all about including ethical and environmental standards in your business and financing decisions. Taking into account environmental, social, and governance (ESG) factors can help you achieve better organisational stability and resilience in the long term. You’ll be better equipped and ready for changes in market conditions, state regulations, and societal expectations. If SMEs adopt sustainable financing practices as early as today, they are bound to reap the rewards in due course.

Sustainable financing options for SMEs

The key is to seek funding options and align your financial interests with environmentally responsible practices. The following funding options are a good place to start:

Sustainability-linked loans

You can enter into sustainability-linked loan agreements with financial institutions that tie interest rates to specific ESG performance targets. This incentivises companies to achieve their sustainability goals.

Impact investing funds

There are impact investing firms that focus on providing patient capital to organisations that address poverty and promote sustainable development. Impact investing is one of the innovative ways the private sector can contribute to sustainable development.

Green loans and energy efficiency financing

Green loans are financing options that allow borrowers to acquire funding for projects that make a significant contribution to the environment. If you’re looking to use the proceeds for technologies or equipment that can improve energy efficiency, minimise environmental impact, or achieve more sustainability in your supply chain, green loans could be the best fit for you.

Government grants and subsidies

There are numerous government subsidies and grants designed for sustainable projects. It could be in the form of financial incentives to businesses following sustainable practices. Make the most of available grants that you’re eligible for or get matched using sites like Swoop.

Access funding with Swoop

Swoop offers a simplified way of getting into sustainable finance. Based on your profile and objectives, the platform allows you to access tailored funding without any hassle. All you have to do is sign up to get matched! Whether it’s business loans or grants, Swoop makes financing quick and easy for SMEs. Get started with Swoop today

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Disclaimer: Swoop Finance Pty Ltd (ABN 52 644 513 333) helps Australian firms access business finance, working directly with firms and their trusted advisors. We are a credit broker and do not provide finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance Pty Ltd can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness, we may receive a commission or finder’s fee for effecting such introductions. Swoop Finance Pty Ltd does not provide any kind of advice and in giving you information about providers products, we are not making any suggestion or recommendation to you about a particular product. Offers of finance are subject to a separate assessment process by the provider and subject to their terms and conditions. If you feel you have a complaint, please read our complaints section which is contained within our terms and conditions.