Fifo Capital has partnered with Givvable to open sustainability-linked options for small businesses and reward them with better finance rates by leveraging their ESG credentials.
The partnership will provide what is believed to be an Australian first - a sustainability linked finance option providing SME supply chains with eligible sustainability or ESG (Environmental, Social and Governance) credentials.
Eligible customers can unlock better rates on early payment of invoices and be rewarded with up to a 25% discount.
Fifo Capital CEO Wayne Morris (pictured) said this partnership would reward businesses with the opportunity to monetise their sustainability efforts.
“There’s plenty of lenders looking to see how to connect ESG with finance but this initiative will be an Australian first and a much-needed breakthrough for the SME sector,” Morris said.
“We anticipate this new offer will be far reaching as sustainable finance options have previously been largely out of reach or very limited for micro, small, and medium-sized businesses.”
Under the new initiative, SMEs can leverage sustainability practices around environmental, ethical, diversity and inclusion, social, community and governance to access better rates on Fifo Capital’s cash-flow finance model.
Morris said with the climate crisis deepening, Fifo Capital wanted to create a platform designed for a more sustainable future which requires an all-hands-on deck approach.
“We always see SMES going out of their way in this area and often they aren’t recognised for doing so,” he said. “This partnership gives SMEs the ability to register their ESG accreditations and by doing so they qualify for Fifo Capital discounts on our finance facilities.”
Eligible third-party validated certifications, accreditations, ratings, or action-based commitments will go toward sustainability credits on the Givvable platform.
Morris said brokers can help their SME clients secure a better cost of finance through ESG and Givvable.
“Fifo Capital will consider a client’s application if a brokerage is accredited,” he said. “We are not expecting brokers to learn all the different accreditations, however brokers can benefit through sustainability and help recognise these businesses are booming.”
Morris said brokers can secure more clients from a slightly different angle and this opened up another conversation with those clients who were cautious about their impact.
Givvable CEO and co-founder Frances Atkins said she expected the partnership to be a game changer for Australian SMEs.
“We know businesses are wanting to do more to improve their sustainability credentials, so rewarding them through reduced rate finance takes it to another level,” Atkins said.
“With cash flow being critical for business survival, it made Fifo Capital a logical partner to bring this new offer to market.”
The sustainability-linked finance model comes into effect this month via the Givvable platform, with eligible businesses able to access discounted rates on early payment invoices and instant working capital for business expenses and investments.
