When products are sold via alternative business models, financing becomes an important issue. In many alternative business models the user is not always the owner, and the producer has to finance the product, or find a bank that finances it. In this video Colin Fitzpatrick explains in this video the finance of alternative business models and gives various examples.

Main takeaways

• This lesson considers circular  economy  business  model  and  financing  schemes for these models
• With  the circular  economy,  you  need  to  take  an  integrated  approach. You  cannot  consider  the  issues in isolation or  adopt a  one  size  fits  all  approach any more.
• The  Value  Hill  is  a  tool  to  position businesses in  a  circular  context  and  develop  future strategies  for  doing  business  and  creating  value  in  a  circular  economy
• The  move  from  the traditional linear economy  model  to the  circular  economy model  is  a  challenge for both  businesses and those who fund  them.  

Some extra reading, in case you’d like to explore this topic further:

Financing the Circular Economy

ABN AMRO, ING and Rabobank launch finance guidelines for circular economy

Finance – The Ellen MacArthur Foundation

3 Essential Steps to Financing Circular Business Models

How to finance the circular economy