I run an energy, clean-tech or environmental business or project
Grants, public investors, community shares and equipment finance for energy and environmental work, cheapest first.
Energy and environmental projects often need large sums upfront, for panels, turbines, heat pumps or plant, and then earn steadily for many years. That suits long-term loans, equipment finance and investors who are happy to wait.
Public and regional investors, grants and local schemes are more active here than in many sectors. Community energy projects can also raise money from local people, through community shares or crowdfunding, which keeps the benefits close to home.
14 routes to look at, cheapest first
Compare the first 4 side by side- L0
Free or nearly free
Little or no cash cost, though most take time and admin. Some bring money in, and a few have small fees.- Grants, tax reliefs and prizes
Capital allowances, Patent Box and creative-industry reliefs
Tax reliefs that cut your tax bill when you buy equipment, earn profits from patents, or make films, TV, games or shows. They do not bring in new money, but they leave more of your own cash in the business.
Months - Grants, tax reliefs and prizes
Local, regional and sector grants
Grants from councils, combined authorities, the devolved governments and sector bodies, often for equipment, jobs, energy saving or exporting. You do not repay them, but they are usually small and come and go.
MonthsUp to £315k - Crowdfunding and community finance
Reward-based crowdfunding
People pay in advance for a reward, often the product you plan to make, through an online platform. You give up no shares and repay nothing, but you must deliver what you promised.
Months
- Grants, tax reliefs and prizes
- L1
Very cheap or subsidised
Borrowing on better terms than the market, usually because a public body, community lender or large buyer is involved.- Government-backed and community lending
Community development finance (CDFI) loans
Loans from Community Development Finance Institutions, lenders that exist to support small businesses, start-ups and sole traders that mainstream banks often overlook.
DaysPersonal guarantee likely - Government-backed and community lending
Growth Guarantee Scheme
A British Business Bank scheme that gives accredited lenders a 70% government guarantee, so they can offer loans, overdrafts, asset finance and invoice finance to smaller businesses they might otherwise turn down.
Weeks£1k to £2mPersonal guarantee likely - Government-backed and community lending
Social investment for charities and social enterprises
Loans and blended grant-and-loan packages for charities and social enterprises, from social investors that want a social return as well as their money back. Often unsecured, and usually only for organisations with a social purpose.
MonthsFrom £5k
- Government-backed and community lending
- L2
Mainstream secured debt
Standard borrowing from banks and mainstream lenders, often secured on assets or backed by a personal guarantee.- Government-backed and community lending
British Business Bank regional investment funds
Government-backed funds for smaller businesses in each nation and region, offering loans from £25,000 to £2 million and equity up to £5 million through local fund managers. Terms are commercial, not subsidised.
Weeks£25k to £5mLoans, or shares if you choosePersonal guarantee likely - Government-backed and community lending
Development Bank of Wales
The Welsh Government's own development bank, offering loans from £1,000 to £10 million and equity investment to businesses based in Wales or moving there. Loans are priced on risk.
Weeks£1k to £10mLoans, or shares if you choosePersonal guarantee likely - Government-backed and community lending
Invest NI loan and equity funds
Loan and equity funds backed by Invest NI, Northern Ireland's economic development agency, from small business loans of £10,000 to equity rounds of up to £2.5 million. Each fund is run by a private fund manager.
Weeks£10k to £2.5mLoans, or shares if you choosePersonal guarantee likely - Government-backed and community lending
Scottish National Investment Bank
Scotland's public development bank, which invests £1 million to £50 million of long-term debt or equity in businesses and projects that serve its missions: net zero, places and innovation.
6 months or more£1m to £50mLoans, or shares if you choose - Bank and mainstream debt
Asset finance (hire purchase and leasing)
Spread the cost of equipment, vehicles or machinery over time through hire purchase or leasing, instead of paying for it all up front.
Weeks - Bank and mainstream debt
Bank term loan
A fixed amount borrowed from a bank or other mainstream lender and repaid in regular instalments over an agreed term, with interest.
WeeksPersonal guarantee likely - Bank and mainstream debt
Commercial mortgage
A long-term loan secured on business property, to buy premises you will use yourself or rent to another business.
Months
- Government-backed and community lending
- Equity rungs. These routes cost no interest, but you give up part of the ownership and control of your business. They are ranked by how much you give up, not by a made-up interest rate. Over time, equity can be the most expensive money of all.E1
Light dilution
You sell a small share of the company, usually to many small investors or people you know, and keep control of how it is run.
Worth knowing
- Lenders look closely at contracts for the energy or service you will sell. Have them in place, or agreed, before you apply.
- Check grant and scheme windows in your nation: England, Scotland, Wales and Northern Ireland run their own.
- Read the risks on any investment offered to the public, such as community shares, before you promote it.