Green finance

Iulia Popescu

James has been absolutely fantastic throughout the entire funding process. He guided us with clear, straightforward advice and was always quick to respond to any questions we had. Thanks to his support, we were able to secure the funds we needed swiftly and without any unnecessary complications. His professionalism, efficiency, and deep understanding of the funding landscape made what could have been a stressful experience feel smooth and manageable. I would highly recommend Swoop—and especially James—to any business looking for reliable, expert support in securing finance.

Aug 5, 2025

Mr B

Simple- Helpful - Accurate

Aug 5, 2025

Jodie Marshall

At a time when I needed some extra funding for my business, I went to SWOOP. They were absolutely amazing. My business is a social enterprise, we so have a not for profit clause which often means mainstream lenders don't like to lend. But these guys found me a company willing to lend at an amazing rate and with amazing terms (better than any social investor I've come across). I gave them what I thought was an impossible task on the off chance, and they delivered! So impressed with their professionalism, friendliness and super quick turn around! Thank you SWOOP!

Aug 5, 2025

Neil Jones

Just when you need that additional business boost, Swoop have you covered. Fantastic turnaround from Adrian and team. They kept me fully informed from start to finish, and with a follow up to make sure everything went well and all is good. Fantastic, highly recommended.

Aug 4, 2025

susan allan

had an amazing experience with BEN nicest taxi driver ever . helped us with a stressful end to the night and couldn’t thank him enough staying with us until we were all safe . if anyone needs a taxi i would recommend ben with swoop .

Aug 3, 2025

Jack

Absolutely brilliant company to deal with. Farhan was extremely helpful, friendly and very efficient from start to finish and have helped us get funding with minimal interest rates which will help the company repay quicker and expand faster. Thanks so much Swoop

Jul 21, 2025

Canada Business Leasing

Love working with this group.

Jul 17, 2025

Lindsay

Cynthia made the process really easy, the customer service was great through out the whole process. Would definitly recommend talking with Swoop and Cynthia!

Jul 11, 2025

Jamal Ogungbola

Great experience from start to finish, helped us secure funding for a new dryer for an independent care home. Very grateful to Adrian and Nichola for their support throughout.

Jul 8, 2025

Darpan

Awesome Service! Very professional and quick processing .Thank you !

Jul 6, 2025

Add a header to begin generating the table of contents

Page written by Chris Godfrey. Last reviewed on December 11, 2024. Next review due April 6, 2026.

Decarbonising your business to make it more sustainable, efficient and environmentally-friendly can be a win/win for everyone, but it will usually require upfront investment. Green financing can help you manage the costs.

Add a header to begin generating the table of contents

What is green finance?

Green finance is essentially a business loan or investment that’s used to support environmentally-friendly activities such as moving to renewable energy, improving energy efficiency, reducing pollution, increasing conservation, and building climate resilience. Available from government sources, traditional banks and online lenders, green financing functions similar to standard business loans and investments, but it may come with lower interest rates and improved terms and conditions if the borrower can demonstrate positive environmental impact.

What can you use green finance for?

Green financing can help to make your business greener in a variety of ways:

Vehicle fleet electrification
Transition to renewable energy (e.g., solar, wind, and hydropower)
Incorporation of energy-efficient technologies
Switching to sustainable agriculture and waste management
Supporting green infrastructure projects such as eco-friendly transportation systems, green buildings, and urban climate adaptation strategies
Funding biodiversity conservation, reforestation, and water resource management
Reducing your organisation’s carbon footprint and adopting sustainable practices

What are the different types of green financing?

There are many types of green financing available for UK SMEs. Popular options include:

Green small business loans: Buy electric vehicles, energy-efficient technologies and more. You receive a lump sum upfront and repay the loan with regular instalments. Borrow up to £5million and repay over 2 to 25 years. Collateral may be required.
Green revolving credit facility: A loan that functions like a high value credit card. Cover the costs of decarbonising your business without hurting cash flow. Withdraw as much as you need when you need it up to the limit of your credit facility. Repay in regular instalments or according to your income stream.
Green start-up loans: Get your new green business up and running. Borrow up to £25,000, repay over 1 to 5 years. Collateral may be required.
Green finance leasing: Move to electric vehicles, invest in better, greener plant and machinery. This type of financing uses the asset you’re leasing as security for the loan. No additional collateral is usually required. You may have the option to buy the vehicles or machinery outright at the end of the contract – in some cases, for as little as £1.
Green business grants: Whether you use them for environmentally-friendly innovations, sustainability projects, the development of smart, green technologies or other carbon-reducing activities, green business grants are effectively free money – you don’t have to repay the funds if you use them properly. Available from the UK government, foundations and commercial organisations, green business grants can be a good option for businesses that may struggle to obtain a regular business loan. However, be aware that most grants are highly competitive and can often take months to fund. Additionally, you may only receive some of the cash you need, so be prepared to look for additional funding sources.

What are the benefits of green finance?

The benefits of green finance are manyfold:

At the macro level, green finance supports the UK’s transition to a low-carbon economy and can help to mitigate climate change
Economically, green finance can attract investment in innovative green technologies, create jobs, and foster long-term growth
For businesses, green finance can enhance organisational reputation, reduce regulatory risks and improve efficiency – all of which can improve the bottom line
Socially, green finance can improve public health by reducing pollution and encouraging resilience against climate-related challenges

Green finance vs. sustainable finance

Some observers may confuse green finance with ‘sustainable finance’, but there are distinct differences between these types of funding.

Green finance focuses on funding projects and initiatives with positive environmental impacts, such as reducing greenhouse gas emissions and promoting renewable energy. In contrast, sustainable finance encompasses a broader approach, incorporating environmental, social, and governance (ESG) factors into investment decisions to foster long-term economic growth, social well-being, and environmental sustainability.

Both green and sustainable finance share the common goal of mobilising capital toward activities that drive positive change, support sustainability, and mitigate negative environmental impacts.

Eligibility criteria for green finance

Obtaining green finance for your business is similar to applying for a regular business loan – although you may have to prove positive environmental impact to qualify for lower interest rates and fees. In most cases lenders will consider the following when assessing your eligibility for green financing:

How long your business has been in operation – typically more than 2 years, but some lenders may accept less
Personal credit score – usually a minimum of 600
The type of business you operate
Where your business is located – some areas of the UK may have preference for green finance
Business financial history – bank statements, cash flow, balance sheet, tax returns, etc
Use of funds – what will the loan pay for? Is it a qualifying green purchase or activity?
Your business plan – how will green financing help decarbonise and improve your business?

Please note: some lenders may have specific criteria unique to their funding programme.

How long does it take to receive funds with green finance?

Depending on the type of loan or grant you have applied for, it can take anywhere from a couple of days to several months to receive your funds. However, in most cases, you should allow up to 6 weeks from your loan application to receive money in your business bank account.

Get started with Swoop's business funding platform

The UK may be looking to 2050 to achieve a net-zero economy, but that doesn’t mean you shouldn’t start preparing now. Moving to a more sustainable and environmentally friendly business may put you ahead of your competitors- and that’s where Swoop can really help. Contact us to discuss your green financing needs and to see the best green deals from a range of lenders. Don’t wait until it’s too late. Get the funds you need for a brighter future now.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy.