Sustainability is no longer a buzzword but a strategic priority. From switching to low-emission vehicles and upgrading to energy-efficient systems, to investing in circular supply chains, more UK businesses are turning their focus to green initiatives.
But making the transition often requires upfront capital and that’s where finance can play a crucial enabling role. Here’s how finance can support a business’s green goals.
- Green asset finance
Many sustainability upgrades, from solar panels to energy-efficient machinery, can be funded using asset finance. This enables businesses to invest now and pay over time, while potentially cutting operational costs in the long run.
- Hire purchase for ownership at the end of the term
- Lease options to avoid asset depreciation
- Ideal for – EVs, heat pumps, smart lighting and low-carbon equipment
Green asset finance can often be structured with seasonal payment plans or aligned to energy savings.
- Electric vehicle (EV) fleet finance
Electric vehicles come with lower running costs and tax benefits, but higher upfront costs can slow the upgrade process. Tailored vehicle finance spreads these costs and makes the switch more manageable.
- Contract hire or finance lease options
- Access to government EV grant schemes
- Arrangement of fleet upgrades with minimal disruption
Whether a business is switching one van or an entire fleet, a finance provider will build a funding solution that supports a transition to cleaner transport.
- Sustainability-linked loans
A growing number of lenders now offer loans with rates or terms linked to a business’s sustainability performance.
- Preferential pricing if targets (e.g. carbon reduction) are met
- Can cover general business use, not just green projects
- Encourages measurable progress on Environmental, Social and Governance goals (ESG)
- If a property has a good EDP rating (for example it is less carbon heavy with good energy performance) then better pricing options are available.
If a business uses a finance provider, they will help to navigate the criteria and align funding with the company’s sustainability roadmap.
- Refinance for green projects
If a business already owns high-value equipment or property, then refinancing these assets can unlock cash to reinvest in sustainable upgrades.
- Release working capital for ESG improvements
- Consolidate existing finance for efficiency
- Ideal for businesses aiming to fund multiple changes without new borrowing
Green investments are clearly good for the planet, but they also make commercial sense. Lower utility bills, improved efficiency, and enhanced brand credibility are just a few of the returns. With the right finance in place, a business doesn’t need to delay these benefits.
At NGI Finance, we understand that sustainability isn’t one-size-fits-all. Our team works with businesses to build finance solutions that are smart, flexible, and fully aligned with its green ambitions.
Want to explore finance options for your next sustainable investment? Call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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