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 turn to invoice factoring. Here are some of the benefits of sustainability investments and the reasons to use invoice factoring to secure capital.
Gain a Competitive Advantage by Going Green
Customers prefer spending money at companies that go green or that sell green products. In fact, a survey showed that roughly 77% of consumers are more willing to purchase from a company that has a Corporate Social Responsibility pledge.
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. For example, one report found that Procter & Gamble save $2 billion through waste and energy savings between 2007 and 2015.
However there are other benefits to going green. One example is tax credits. These incentives reward companies for making the switch by allowing companies to claim certain deductions on their taxes. For example, you could claim a 30% credit for investing in solar or wind.
Furthermore, research has shown that businesses that are socially and environmentally responsible typically cultivate a positive, empathetic work culture and attract key job seekers. This fosters loyalty, garners more trust in leadership, and increases job satisfaction, which in turn boosts 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.