White Oak launches Green Fleet offering to power EV transition for UK SMEs
Independent business lender White Oak has announced a new Green Fleet product to support UK businesses looking to electrify their commercial fleets. The new financing option will allow businesses to invest in cars, vans, LCVs and HGVs that are either fully electric or hybrid vehicles.
With the COP26 conference dominating the business agenda, White Oak has recognised and responded to the key role that SMEs must play in the electric vehicles (EV) transition and the move towards net zero. The Government has also signalled support as UK businesses can now utilise the super deduction scheme which allows companies to cut their tax bill by up to 25p for every £1 they invest in green assets.
The upfront investment in electric vehicles has often been quoted by business leaders as a significant hurdle to transitioning fleets, but White Oak’s Green Fleet offering enables businesses to acquire qualifying assets with as low as a 0% deposit. On top of that, businesses are able to take advantage of both the tax, congestion charge and fuel savings which come from transitioning to a fleet of electric vehicles, further boosting cash flow. The new product is targeted at all businesses utilising vehicles for business purposes from hospitality to haulage.
Green Fleet – key product terms:
- Finance any vehicles which qualify for the UK Super Deduction scheme
- Benefit from deposits as low as 0% and spread payments over up to five years
- Structured as a Hire Purchase Agreement to allow customers to own the asset in full at the end of the scheme
In addition to financing green assets, White Oak is committed to supporting businesses who are driving the reduction of carbon emissions in the UK. For example, Nottingham-based renewable energy business FDG Group accessed a £237,000 loan to expand its business, providing a solution to the rising energy bills caused by increased remote working. The loan has been critical in allowing FDG, which installs heating and solar systems, to take on a substantial commercial project in London and helped them grow their business.
White Oak recently announced a new HQ office in Chester to support continued growth for the business. With offices in London, Glasgow, Southampton, and Chester, White Oak benefits from national coverage, and its team of over 100 lending specialists have provided loans and asset finance for SMEs and mid-sized corporates right across the country, with 79% of lending so far deployed to businesses outside of London.
James Felton,chief operating Officer of White Oak Europe, said: “We are extremely excited to launch this product at a critical time for UK SMEs, which account for 99.9% of UK companies, and therefore who must play a central role in supporting the UK economy meeting its net zero emissions target. As businesses begin to recover and rebuild from the Covid-19 pandemic, it is an opportune time for businesses to invest in electrifying their fleets not only to meet their wider social responsibilities, but also to benefit from the lower running costs and generous tax breaks available. This new product is part of our broader ESG strategy and policy and demonstrates White Oak’s commitment to enabling SMEs to make critical investments by providing flexible financing solutions which work for them.”
