A. M. 
Circular finance is an economic model that seeks to maximize the value of resources by extending their useful life cycle, minimizing waste and promoting sustainability. Small and medium-sized enterprises (SMEs) can adopt this approach to improve their profitability and contribute to environmental stewardship.
Here are three recommendations for applying circular finance in your business.
First, optimize the use of your resources. Conduct an internal audit to identify materials that can be reused or recycled. In this way, you will be able to reduce costs in the purchase of inputs, make better use of what you already have and, at the same time, reduce your environmental impact. Investing in recycling or reuse technologies can be key to transform these processes.
Second, it fosters the collaborative economy. SMEs can partner with other companies to share resources or services. For example, you can exchange useful waste or by-products with companies in other sectors that can take advantage of them, generating additional income or reducing operating costs. This type of collaboration strengthens value chains and creates synergies that boost profitability.
Third, it implements service-based business models. Instead of selling single-use products, evaluate the possibility of offering maintenance or recycling services for your products. Not only will this allow you to build customer loyalty, but it will also open up new revenue streams by extending the useful life of what you offer. Thus, your customers will perceive added value by opting for more sustainable and economical solutions.
Adopting circular finance in SMEs not only benefits the environment, but also boosts operational efficiency and long-term profitability.
