Sustainability is a future business for companies.
Before taking the step to sustainability, you should know the financial alternatives existing in the market for renewable energy projects. We are going to summarize them for you, so that as a company you know the most popular modalities.
Do you need equity participation?
It is possible to obtain financing through a capital increase, that is, issuing new shares or increasing the value of the initial ones. This strategy is possible if the promoter of the project is a company.
The Business Angels, are the most common option for capital increases.
This type of financing is done by private investors, who support a business idea. In addition, of the capital bring industry experience, since they are specialized in green energies.
Therefore, they can offer orientation to know if the business idea will be successful or not.
Business Angels invest in the initial phase of the project, providing capital and experience. They are usually attracted to innovative projects, such as renewable energy.
Is your renewable energy project small?
When looking for financing, one of the alternatives available is the crowdfunding.
This practice consists of collecting money from a large number of private investors. There are different types of crowdfunding, but they all aim to provide financing solutions.
This type of financing is carried out through a fintech, which provides its electronic services, to achieve the objective of collective financing.
Is your renewable energy project not small?
We recommend you 3 alternatives:
- forfaiting. Financing is achieved by advancing pending customer collections, where the financial company assumes the risk related to possible customer defaults.
By opting for Forfaiting, business growth is observed, because the company is free of past customer debts and can continue investing in the new renewable energy project.
- Factoring. This financial tool works by selling promissory notes or bills of payment to a financial institution for an amount of money that will be used to finance the new sustainability project. TO difference of the ski pass the responsibility of claiming the collection is assumed by the financed party.
- green bonds. They are debt issues in the stock market for sustainable projects. Investors who buy these bonds want to support the financing of projects such as: the construction of a wind farm, photovoltaic installation projects by a company. Currently, there is a great appetite in the market to participate in renewable energy projects.
When you decide to bet on renewable energy projects as a company, You must assess the different options and opportunities offered by external financing.
The different types of financing such as Business Angels, Crowdfunding, Factoring, Forfaiting and Green Bonds, can help in decision-making regarding the choice of financing for a company's sustainable energy projects.
In Alter Finance we offer a wide variety of financial advisory services In case you need great professionals to help you manage and make decisions about your company. So don't hesitate to contact us. We will wait for you!