Whether you plan to perform enhancements on the business you have or choose to start a new firm from the ground up, financing will rapidly become a serious issue. A select few possess enough equity to pursue self-funding, and therefore a broad series of other measures must be considered and taken.
Government-generated awards and grants may suit, though the vast majority will also come with a strict need for documented progress and budgetary reporting. Grants will also prove less than useful for any ongoing costs incurred over the long term, which speaks well for a loan. Loans will also be much faster to request and receive, and although they will have to be paid, the amounts accessible may more than cover any change-over period in question. The idea of breathing room for repayment is perhaps the most attractive feature of borrowing from a high-street institution.
Important considerations in forming a business plan that successfully addresses a loan application will be the answers to a series of questions. Does the plan meet an environmental need the loan provider might construe as indirectly or even directly beneficial to its own concerns? This might be the basis for reduction in rates of interest for repayment. Can you provide a clear and coherent list of steps the business will be taking to address becoming sustainably greener, whether through simple recycling or by means of a total production overhaul? The answer to this one will determine the amounts of money the firm can logically lay claim to in the request.
And might waste reduction and higher energy efficiency factor into your plans? If so, that would place the eventual application for a loan among the majority, meaning more readily granted. The funds may then be used to retrofit aging and inefficient equipment, for starters, and this money is available from several reliable sources, from the level of local authority all the way up to national groups like the Carbon Trust. Depending on the nature of the changes and the way in which they support local economy, you will need to match the need to the proper institution. This is, in fact, the most important effort of the process.
Another aspect worth notice is competitiveness, both in the public sector economy and for the actual financial support desired. If one business in the neighborhood has achieved financing, it will pay to observe their process, while also determining whether your venture offers productivity in another area or not. Applying to a different bank, authority, or public-sector source may also be the best course of action. A further mandate for successful action involves doing a significant amount of research on your sources. Some offer interest-free financing, for instance, and others are most likely to invest in energy projects. Others still, you will learn, offer awards or prizes that may accompany a successful loan application.
Get organized, then, on paper and in person, and present your plans for “greening” your business. These may well produce the effect needed.
Written by James AKA Firespin Jay a writer with Business and Eco Interests. Come and say hi @FirespinJay