Want to make your business more sustainable? Find out how to finance the investment

Which financing option is right for your sustainable investment?

The type of financing that suits your investment depends on your financial situation and the amount you need. Take a look at the table below for the options:

Using your own funds

You can pay for an investment in making your business more sustainable either entirely or partly with your own funds. This means you will need to borrow less, and your monthly costs will remain lower.
Many business owners combine their own funds with a loan. This allows you to keep part of your financial headroom available for other expenses and unexpected costs.

Features

• No interest or arrangement fees

• Can be easily combined with a loan or grant

When is this a good option?

If you have enough financial flexibility and want to minimise your financing costs.

Borrowing money for sustainable investments

1. Qredits SME Sustainability Loan (€1,000 to €50,000)

For smaller investments, the SME Sustainability Loan (in Dutch) from Qredits is a suitable financing option. The loan is intended for small and medium-sized businesses who want to invest in sustainability. You can use the loan, for example, for solar panels, insulation, a heat pump, or other energy-saving measures. Thanks to a government subsidy, the interest rate is currently 2% per annum.

Features

• loan amount: €1,000 to €50,000
• fixed monthly repayments for interest and capital
• for sustainability investments

When is this a good option?

For business owners looking to finance a relatively small investment in sustainability.

2. Business loan from a bank (€25,000 to €5,000,000+)

For larger sustainability investments, a business loan from a bank is often a suitable option. Banks finance, for example, solar panels, sustainability upgrades of commercial premises, energy-efficient equipment, or other sustainable business assets.

The bank will assess, among other things, your investment plan, your financial situation, and the security you can provide.

Features

• loan amount: from approximately €25,000
• interest rates and terms vary by bank
• for larger or long-term investments

When is this a good option?

For entrepreneurs who want to finance a larger investment in sustainability.

Using the BMKB-Groen scheme as an extra option

For sustainable investments, the lender can make use of the BMKB-Groen scheme. This is a government guarantee scheme. Under this scheme, the government guarantees part of the loan. This means the lender faces less risk and it may be easier for you to secure financing. You cannot apply for BMKB-Groen yourself. Your bank or other lender will assess whether the scheme can be used.

Key features

• for loan amounts up to €1.5 million
• for SMEs with up to 250 employees
• applications are made via the bank or another participating lender
• the scheme runs until 1 July 2027

When is this a good option?

For entrepreneurs who want to make their businesses more sustainable but do not have enough collaterol to finance the investment entirely through a standard loan.

3. Energy funds (€5,000 to €2,500,000)

Many Dutch municipalities and provinces have an energy fund through which entrepreneurs can finance sustainable investments. The conditions vary by fund. Municipal energy funds are often intended for smaller projects. Check your municipality’s website to see if there is an energy fund or sustainability loan available. Provincial energy funds (in Dutch) are usually meant for larger investments, such as making buildings or installations more sustainable.

Features

• municipal funds: loan amount from €5,000 to €50,000
• provincial funds: loan amount from €25,000 to several million
• interest rates and conditions vary by fund

When is this a good option?

If your municipality or province has a fund that suits your investment.

4. Leasing (from €5,000)

With a lease, you pay a fixed monthly amount for the use of a business asset. This means you do not need to have the full investment amount available immediately. With a financial lease, you usually become the owner of the asset. With an operating lease, the leasing company remains the owner. You can use a lease for items such as solar panels, charging points, heat pumps, equipment, and electric company cars.

Features

• for investments from €5,000
• fixed monthly payment
• term usually 3 to 7 years
• choice between a financial lease or an operating lease

When is it a good option?

If you do not want to pay for the investment all at once and want to keep your business funds available for other investments.

What should you look out for when choosing a financing option?

Do not just look at the interest rate. Also consider:

• the total cost of the financing
• the term and monthly payments
• the option to make early repayments
• the security required by the lender
• the impact on your cash flow

A financing option with the lowest interest rate is not always the best choice if its terms are not right for your business.

Prepare your funding application carefully

A lender will want to know whether your sustainability plan is feasible. So make sure you provide:

• a clear description of the investment
• an investment budget
• an overview of the expected costs and returns
• information about the energy savings or other benefits

A well-prepared plan will make it easier for a lender to assess your application.

Help with business financing

Not sure which financing option suits your sustainability plans? The Financing Guide helps you compare the options. Do you still have questions after reading this? Call the KVK Advice Team on 088 585 11 11 or ask a financing expert for advice.