Green finance

Jackie Escartin

I had the pleasure of working with David from Swoop, and I couldn’t be more grateful for the support he provided throughout my loan application process. From the very beginning, David went above and beyond to guide me through every step with clarity, patience, and professionalism. He made what could have been a stressful experience feel smooth and manageable. David truly understood my business needs and worked tirelessly to ensure I got the best possible outcome. His dedication, prompt communication, and honest advice made a huge difference. Thanks to his help, I was able to secure the funding I needed — and I felt fully supported the entire way. If you’re looking for someone who genuinely cares and knows how to get things done, I highly recommend working with David at Swoop!

Jun 30, 2025

Joseph

Really good experience from start to finish. Our needs were fairly specific with the requirements of a specific maximum APR with unsecured terms and Predrag put us in touch with the perfect lender for our needs. Would highly recommend using Swoop as they were able to find us lending options that we simply wouldn't have been able to find on our own.

Jun 26, 2025

Syma Aurangzeb

Excellent customer service with a personal touch. Made the whole process easy from start to finish. Highly professional and efficient 10/10

Jun 14, 2025

London Elite

Outstanding service start to finish

Jun 11, 2025

Niki Still

Predrag was very helpful and suppportive through this process. He kept things on point and helped me to get what I was after. Incredibly appreciative of all he did to get me to this point.

Jun 9, 2025

Alun

With Ann Marie Swift, I experienced probably the most succinct, clear and helpful financial advice phone call I have had in many years. She listened and explained clearly, making the process very simple. Highly recommended!

Jun 8, 2025

Healthcare Company

Shane from swoop was very professional and patient. The service was fast and efficient. Highly recommend swoop funding.

Jun 6, 2025

Barry Chapman

Really couldn't fault the service. Adrian was highly efficient, going above and beyond to make sure everything was done and all boxes were ticked in time for the process to continue to completion. Thank you.

Jun 5, 2025

Jonno Bennett

The process was fast and efficient. They did everything that they said that they would with minimal fuss. Very friendly staff kept us informed along the way and once the facility was established a follow up welcome phone call detailed the process for drawing down the funds. I couldn’t be happier

Jun 4, 2025

Tyler Panayi

I had Ikhar from the beginning and she has been absolutely amazing and got the deal over the line. She was on point and I can’t thank her and he company enough! Highly recommend this company and Ikhar!! Thank you so much!

May 30, 2025

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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.

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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.

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