Since the UK government announced plans to phase out petrol and diesel cars by 2030 to businesses who own fleets of vehicles, business owners are under pressure to replace their fleets with electric cars. This move will be costly because as well as buying the cars, they will also need to invest in recharging facilities. So, how will companies afford the investment required, and what help can charging solutions manufacturers give customers so they can make the sales? This blog explores different solutions to help fleet owners afford electric charging solutions.
How can companies afford electric vehicle charging solutions?
The transition from fuel to electric cars requires a collaborative effort from business owners, electric charging solutions manufacturers, and lending institutions. Lease finance can be an effective way of enabling businesses to upgrade to electric vehicles.
Lease finance is a contractual agreement between the owner of an asset and another party who uses said asset in return for a periodic payment. In most cases, the owner is a finance company who rents the asset for an agreed-upon period of time. When a company enters into this agreement, they have operating control over the asset. They are also responsible for all the risks and rewards associated with the ownership of the asset. Lease financing is the best way to acquire an electric charging solution from a financial standpoint. It offers several benefits, including:
• Manageable budgets
Small monthly budgets make this very expensive purchase accessible to all interested companies. The payments are also fixed, making them easy to account for.
• Corporate tax relief
The cost of leasing an asset is deductible as a business expense, which means that companies can enjoy corporate tax relief. Ultimately, finance leasing allows you to retain more profit in your business.
Finance companies such as Tower Leasing need partners to provide equipment finance to SMEs and small businesses. If your company sells recharging facilities, lease financing can be an excellent opportunity for you to increase sales and grow your client base. Your company will appeal to a wider audience with affordable payment plans, therefore increasing sales. The long payment period also gives you enough time to build customer relationships that could potentially last a lifetime.
Electric vehicle charging solutions – find out more
In 2014, we started financing EV chargers, we were one of the first companies to do so and have gained valuable experience about your industry. Coupling this experience with our knowledge of our own sector, we can provide a service that is tailored to you and remove any confusion you may have. Whether we are providing finance to the public or commercial sector, brand new start entities or established organisations, Tower are here to guide and support you every step of the way.