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Challenges When Securing Financing for Eco-Friendly Projects

Financing for Eco-Friendly Projects

Getting an eco-friendly project off the ground is exciting, but don’t be fooled into thinking that it is going to be an easy ride. Along the way, you’re going to face quite a number of hurdles; and, in particular, you will find that you face several challenges in securing the financing you need as capital for the project.

Procuring secured financing is always challenging, but when it comes to eco-friendly projects, it becomes even more challenging. That is due to the simple fact that several aspects of eco-friendly projects invariably make it more difficult to get green finance.

Increased Costs


Being eco-friendly is the most responsible and the right thing to do; but, unfortunately, in many cases, it is also more expensive. Sourcing eco-friendly materials, developing eco-friendly alternatives, or even using more eco-friendly manufacturing methods all add costs to your project – which means that you will need to secure more financing than with a similar project using conventional means.

As you can imagine, having to secure more financing is a challenge in and of itself, as many investors will inevitably question the profitability and costs of the project. Because eco-friendly projects are attracting more interest, there are lenders and investors who will be...

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