Sustainable financing practices for SMEs

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