Increasing number of SMEs seek funding to improve sustainable practices
An increasing number of businesses are looking for funding to take practical steps to further enhance and improve their sustainability credentials, according to Allica Bank, the digital relationship bank dedicated to serving established British SMEs.
Its latest survey of asset finance brokers showed almost two thirds (65%) have seen a rising demand in the number of businesses requesting funding specifically to improve sustainability. Of those, a fifth (20%) described the increased demand as ‘large’.
Allica Bank said it has seen applications from businesses and their brokers to fund a range of green projects, including the installation of solar panels and biomass boilers, the electrification of vehicle fleets, or adding double glazing.
Demand is principally being driven by clients looking to upgrade to more modern and energy efficient equipment (67%) while more than half (54%) are seeking funding to shift to electric vehicles. Two fifths said they had supported clients who were after finance to improve the green credentials of their business premises, while 17% said clients were hoping to transform their products or services to be more sustainable.
Arshad Miah, senior business development manager at Allica Bank, said it’s encouraging that so many businesses are looking to boost their sustainability: “There’s plenty of reasons for a business to focus on sustainability alongside the benefits it has for the planet. It can improve perceptions of the business, reduce costs, make operations more efficient, or make you a more attractive supplier for other businesses trying to meet their own sustainability goals.
“It’s important that banks match this ambition. At Allica Bank we’re keen to support businesses hit these goals. We’ve also been using the Recovery Loan Scheme to support those businesses with finance for green projects that would otherwise sit outside of our credit appetite.”