Businesses are realising more than ever that 'going green' is not just a good thing to do for the environment, but a smart business decision.
Making more environmentally-friendly choices can offer significant commercial advantages for small business owners. And with Australian Government support — like the Temporary Full Expensing (TFE) incentive and tailored asset finance from the Clean Energy Finance Corporation (CEFC), there's never been a better time to think about making the switch to more sustainable equipment and finance solutions for your SME business. Here's why.
1. Government incentives and tax benefits
Governments are increasingly offering incentives for businesses to adopt more sustainable business practices. For example, the CEFC invests on behalf of the Australian Government in technologies and projects to cut emissions across the Australian economy. This finance has seen a number of financial institutions provide sustainable financing options for eligible SME businesses looking to invest in equipment — such as solar systems, green vehicles, irrigation and agricultural equipment — to reduce their energy costs and lower their emissions.
2. Lower costs, greater profitability
Research suggests that more sustainable businesses tend to perform better financially because more energy-efficient solutions can help to reduce operating costs, increase productivity and improve profitability. The trend towards investment in clean-tech innovation also means that the more sustainable choice can often be the better option in terms of quality.
3. Reduced risk
Investing in cleaner energy sources — such as solar, wind and water hydro power or renewable fuels — can give you greater control over your energy supply and reduce the risk of exposure to unexpected fuel price hikes.
4. Customer demand
Consumer demand for greener products and services is rapidly increasing. A recent report by Harvard Business Review highlighted that savvy customers want to know what the environmental costs of products and services are. So, businesses who adopt sustainable practices and market them well, have the opportunity to attract new customers and build loyalty amongst existing ones.
From a business-to-business perspective, the increasing focus on environmental issues means that businesses are more inclined to do business with those that have similar values to their own.
It's also an important issue for export businesses as big markets such as the European Union have started introducing higher sustainability standards for products sold within their region.
5. Attracting and retaining staff
Research suggests that sustainability practices are a prime driver in attracting and retaining staff with job seekers increasingly attracted to companies that care about the environment. Employees of businesses that promote sustainability are also more likely to have a higher sense of purpose and are more satisfied with their jobs.
Talk to your broker about sustainable financing solutions to suit the needs of your business.
This information is for general information purposes only. The information contained herein does not constitute financial or professional advice or a recommendation. It has not been prepared with reference to your financial circumstances or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice as to whether or not this information is appropriate for you.
Original post by Bank of Queensland