1. Green microcredits, ecological awareness
More and more people join sustainable development, creating a ecological awareness getting deeper.
For this same reason, the sustainable finance are spreading progressively and specifically, the green microcredits They are gaining great importance. Therefore, we would like to introduce them to you and help you understand them.
2. Green microcredits, concept and characteristics
Within sustainable finance, the first important concept that you should know is that of green loans. These allow you to anticipate money for a while, in exchange for interest, as long as the financing received is used for ecological and sustainable projects.
As we have mentioned, the plans that support these investments are directed at the ecological field and will suppose environmental improvements. In this way, the recipient of the loan benefits individually and thanks to his ecological awareness provides an additional service to the planet and its inhabitants, which fosters a collective improvement.
Among the purposes of these sustainable finances are updating infrastructures, installing renewable energies or reducing the carbon footprint. A company, even an individual, is in a position to obtain these green loans to renew its fleet with electric vehicles, invest in solar panels, etc.
Now, for it to be considered as such, it must have been so qualified by an external body.
3. What are green microcredits?
Microcredits, for their part, are loans of not much money aimed at vulnerable people or with financial difficulties.
They are provided with reduced interest and they have a social purpose, since their objective is to boost an economy that is damaged or in danger.
In general, the period set for the return is also short. Its importance in certain areas of the planet, such as Asia, Africa and Latin America, has been decisive.
Thanks to them, thousands of people have been able to undertake and try to make their personal projects come true. In parallel, they have contributed to the economic advancement of their environment.
The green microcredits, are inspired by that ecological awareness to which we were referring. The purpose of this individualized and accessible economic support is to promote good environmental practices. In any case, the investment that you are going to make after receiving that money in favorable conditions will always be good, in ecological terms.
4. Microcredits, are they quick credits?
It is important to differentiate both concepts. Although the agility in assigning financing is high, microcredits are not minicredits.
The mini-credits are contracted, normally online, in a very short time, they have to be returned in a minimum period and include large commissions and interest.
The green microloans, however, they shy away from that approach. Pretending to be supports, financial backing focused on the common good and the ecological awareness.
Their goal is to feed sustainable finance that benefit everyone. Thus, their conditions are usually much more accessible than in mini-credits. The interests are low, the commissions null —or almost— and the personalized expiration.
5. Alternative financing and green microcredits
Green loans are presented as a formula for environmentally responsible financing that supports people. Public institutions are promoting these initiatives and granting, directly, different financial supports.
In addition, individual investors with ecological awareness are reinforcing these initiatives. A good number of them come from alternative financing. If something characterizes this area, it is flexibility, the ability to understand new financial needs and to adapt to them.
In fact, one of the most common investment fields of alternative financing is sustainable development and ecological updating. It is not surprising, therefore, that you find a greater empathy in alternative investors when you try to obtain microcredits or green loans.
In formats like Crowdfunding, Those who lend the money do not seek profitability, but generate a positive impact in your enviroment. They are collaborative investors, often in solidarity, especially sensitive to the conservation of the planet.
Other figures, like the Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking or confirming, are also consistent with this modality of sustainable finance.
Therefore, if you are interested in obtaining ecoliquidity and loans or green microcredits, trust Workcapital.
We are specialists in alternative financing and we are personally involved with each client.
We will help you get the best option!
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