The trend toward environmental sustainability grows stronger every year, as more businesses recognize the value of going green. Unfortunately, the upfront costs of retrofits, new builds, and equipment purchases can often prevent businesses from making the switch to sustainability. To bridge the gap between cost and benefit, many companies may turn to invoice factoring. Here are some of the benefits of sustainability investments and the reasons to use invoice factoring to secure capital.
Edge Out Competitors by Going Green
Customers prefer spending money at companies that go green or that sell green products. For example, Michelin recently announced a zero-deforestation policy to harvest rubber responsibly and completely changed the way the world sees their brand. Ninety percent of the world’s natural rubber is harvested from a specific tree in Southeast Asia. Rubber producers have stripped hundreds of millions of acres of forest in that area. Michelin’s program involves responsible rubber production in place of deforestation.
Customers care about brands aligning with their personal ideals. If one company carries on business as usual, but a competitor commits to making positive social or environmental changes, customers tend to buy from the one that makes the eco-friendly changes, even if their product costs more.
Going Green Creates Long-Term Benefits
Investments that make a business more environmentally-friendly are typically aimed at reducing energy consumption and waste, which can lead to huge savings over the long term. One report found that hospitals could save $15 billion over ten years by reducing energy consumption and waste.
Investing in going green may have other unforeseen benefits as well: A study out of UCLA’s Institute of the Environment and Sustainability found that eco-friendly companies had employees who are better trained and formed stronger workplace relationships, making them 16 percent more efficient than average.
Furthermore, other studies have shown that businesses that are socially and environmentally responsible typically cultivate a positive, empathetic work culture and garner more trust in leadership, which can also increase productivity and employee retention.
Going Green Costs Money
It’s likely that many businesses would like to reap the benefits of energy-efficient upgrades and make a positive impact on the environment, but don’t have the capital to invest in improvements. Invoice factoring is one way to secure cash.
Invoice factoring involves selling accounts receivables to an invoice factoring company. If a business has delivered goods or services to customers but is still waiting on payment, a factoring company can purchase the invoices for a large percentage of their value so that the client no longer has to wait on customers’ payment to have working capital.
Here’s why invoice factoring with Bay View Funding is helpful to businesses wanting to invest in upgrades:
- Get cash quickly instead of waiting 30-90 days for customers to pay (in some cases, businesses receive capital in as little as 24 hours).
- Invoice factoring is not a loan, so there’s no debt accrued.
- Funding depends on your accounts receivable, not strictly on the credit rating of your business.
Get the working capital you need to invest in sustainability: Contact Bay View Funding today.