SMEs are displaying a heightened focus on finding finance to boost their sustainability, new research by Allica Bank has suggested.
This comes as a study found that 65% of commercial mortgage brokers and 76% of asset finance brokers said they have seen an increase in the number of “green loan” enquiries.
Allica’s quarterly broker survey indicated that the trend is being driven by SMEs prioritising the upgrade of inefficient machinery, with 48% of commercial mortgage brokers and 72% of asset finance brokers saying their clients sought finance to help fund these projects. Behind this came buying electric vehicles, 26% and 70%, respectively, followed by improving the green credentials of their existing premises, at 35% and 28% respectively.
Around a fifth of commercial mortgage brokers also said they’d seen a growing number of clients reach out to them for help specifically to move their business to a more energy-efficient property.
Allica stated that this focus on sustainability is partly to help combat rising costs, with 88% of asset finance brokers and 66% of commercial mortgage brokers saying they have impacted their SME customers’ 2022 business plans.
“While there are serious challenges ahead for business owners, this could be a catalyst for some significant jumps forward in the UK’s efforts to achieve net-zero,” Allica chief commercial officer, Nick Baker, commented. “The combination of a worsening climate crisis and soaring energy costs will make improving energy efficiency a no-brainer for many businesses.
“Whether it’s better insulating your premises, electrifying your fleet, upgrading machinery, or moving to new premises altogether, it can all help cut monthly outgoings in the long run.
“However, due to the significant upfront cost of many of these projects, brokers are going to play a pivotal role, as a growing number of clients seek the finance to fund them. Those brokers well-versed in how to make a strong funding application for green energy projects will be able to add significant value.”
Latest News
-
Chancellor revives ISA allowance reforms
-
Titan Wealth agrees acquisition of Blacktower Group
-
SIPP withdrawal requests jump 33% ahead of Autumn Budget
-
Savers increasing allocations to fixed accounts, research shows
-
Average mortgage rates creep up for first time in eight months
-
Air warns older borrowers could be in for mortgage shock
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories