Royal Bank of Scotland has launched green loans, and through Lombard, green asset finance propositions, for qualifying small to medium-sized enterprises (SMEs).
Following the announcement of the group’s ambition to provide £100bn of Climate and Sustainable Funding and Financing to customers by the end of 2025, green loans and green asset finance are due to be open for applications from 18 February.
Together, these propositions aim to help qualifying SMEs finance things like solar panels, electric vehicles, or heat pumps on commercial buildings that fall within the eligible list developed by the bank on an ongoing basis.
Non-RBS or Lombard customers can apply, with relationship managers checking eligibility.
Lombard, as part of NatWest Group, is a provider of asset finance across multiple business sectors and has been financing sustainability assets for many years. Its Green Asset Finance proposition has no arrangement fee.
Asset finance provides businesses with an efficient way to finance a wide range of business assets, including assets that customers use to make their businesses more sustainable, like electric vehicles.
Lombard Vehicle Solutions, a contract hire solution provided through ALD Automotive, also lets customers flexibly lease new electric and hybrid vehicles with the additional services they need to meet their needs.
RBS has also committed an investment of £1m for SMEs across the next four years, in collaboration with the Edinburgh Climate Change Institute, the University of Edinburgh's low-carbon hub.
Judith Cruickshank, regional managing director for Scotland at NatWest Group, said: “While SMEs want to help by reducing emissions, they face many barriers doing so such as [limited] access to information, funding and training.
“We’re working to remove these barriers with concrete actions - providing incentives, such as loans and asset financing that aim to support sustainability ambitions, and aim to benefit businesses whether they bank with us or not.”
Information on how to apply for a green loan or green asset financing is available on the Royal Bank Climate Hub, which features tips, insights and tools aiming to help all UK SMEs act now to tackle climate change, by reducing emissions and unlocking green growth opportunities.
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