An Introduction to Eco/Green Financing for Your Business

Every day in the media, you hear debates on environmental conservation and concomitant issues such as climate change. As a business entrepreneur, it is highly likely that you ignore such talk to concentrate on your day to day operations.

However, research shows that environmental conservation affects your business more than you thought. In fact ignoring environmentally friendly business practices is akin to killing your venture. A Green Gauge survey by GfK in 2012 showed that 93% of consumers are personally aware of the need to conserve the environment and this has changed their lifestyles including shopping.

Welcome to Eco-financing

Now that you understand your customers are more aware, it is time to integrate environmentally friendly practices in your business. Truth be said, this is an expensive undertaking but with eco-financing you can easily implement your green projects.

Eco-financing is also called green financing and it is a funding tool provided to make your business more energy-efficient or adhere to environmentally friendly practices. Through financial leverage you will be able to adapt technology and business practices that will meet your financial obligations while not impacting on the environmental ones.

Using Eco-financing as a Trump Card

Contemporary business environment is viciously competitive and only the innovative can survive. Now that most businesses are focusing on expansion and adoption of technology, you can walk the road less taken and invest in going green.

Eco-financing is an effective investment related tool because ultimately the gains will be plain to see in your bottom-line. To appreciate how this funding can act as your ace-up-your-sleeve in stiff market consider:

  • More productivity: It may be hard to notice but once you adopt green practices in your business your staff will become more productive. A report by Green Business Bureau reports that healthier business environmental lead to 20% reduction in sick employees.
  • Enhance your bottom line: Once you have environmentally friendly practices in place you can improve your bottom line by capitalizing on the 2009 tax credit stimulus plan which provides your business with incentives.
  • Brand recognition: A study posted on environmentalleader.com indicates 53% of global consumers prefer to buy from companies with good green rep. This means you can utilize eco-financing to revolutionize your business and make it a trademark in your market.

In short your business will greatly benefit in terms of public relation and also sustainability.

Eco-Financing options

With this hindsight, it is obvious that your business needs to adopt green practices. This can happen if you apply for financing from the main eco-financing vehicles in the market. These include:

  • Lending and investment funds: There are numerous financial companies that focus on green financing. They offer loans and guarantees or quasi-equity depending on what your business needs.
  • Government subsidies: There are many benefit programs associated with green energy adoption. They include the tax credit stimulus plans among others. They are offered at both national and federal levels.
  • Kyoto protocol mechanisms: Most governments adopted this plan and in their policies they have programs that reward or finance businesses to help them reduce their carbon foot print.

 

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