HSBC has launched a Green Loan scheme aimed at small and medium-sized businesses who want to grow their commitment to sustainability.
The minimum HSBC Green Loan starts at £300,000 with the scheme out of a wider initiative by the bank to help British companies meet their sustainability objectives
The thinking is that small businesses will be able to demonstrate that a portion of their funding is green finance.
Although there is no price difference between a Green Loan and regular borrowing, HSBC UK commercial banking head of sustainable finance Rob King says that he will try to make draw-down as quick as he can.
King said: “We’ve worked hard to make sure the process of getting the loan is as straightforward as possible. We’ve tried to avoid a lot of paperwork.”
Small businesses will also be able to finance green assets through a Green Hire Purchase, Lease and Asset loan product.
HSBC began trialling Green Loans to larger corporates last November and news of Edwardian Hotels’ Londoner hotel, due to open this year, securing a £125m green loan hit the headlines last month.
King added: “We have seen strong demand from businesses since launching the Green Loan pilot last year, so we are confident this suite of products will continue to support our customers to meet their sustainability agendas. Our customers are asking for more green finance products to support their ambitions.”