Initial investment costs can discourage SMEs from choosing to pursue sustainability as a business strategy; the vague long-term benefits and payback on the investment might not seem worth it. And the green sector is vulnerable to changes in government policy, which could adversely affect ongoing sustainability efforts, leading to uncertainty.

Financing a business’s environmental project through external sources can provide the required fiscal security for a successful transition to sustainable practices. Businesses not only get funding in terms of financial aid, but also the technical knowledge and support to help implement future sustainability measures. Many financing schemes also provide evaluations of possible improvements.

In the field of sustainability, governmental institutes, companies and NGOs provide assistance through programmes, funds, grants, loans, and support schemes. Other funding possibilities are provided by the European Union and inter-governmental organisations.

Within the EU's Horizon 2020 programme, for example, SMEs can get up to € 2.5 million each in funding. On the national level, the German government has been providing support for innovative SMEs; ZIM offers a range of funding opportunities and cooperation. The Plug-In Car Grant in the UK is another example, granting businesses up to 25 % of the costs for ultra-low emission vehicles, up to around € 5 635 (£ 5 000). The Dutch government has similar incentives, which results in savings of up to € 19 000 for corporate owners over five years. 

Many suppliers of sustainable technologies have partnerships with financing bodies and can then recommend flexible funding options for SMEs to start their transition to sustainable operations.