Independent business lender White Oak has announced a new Green Fleet product to support UK businesses looking to electrify their commercial fleets, designed to enable SMEs to transition to EVs and move to net zero. The product is available for any vehicles which qualify for the UK super deduction scheme, and addresses the issue of upfront investment in EVS which has been identified as a significant hurdle to transitioning fleets.
White Oak’s Green Fleet offering enables businesses to acquire qualifying assets with as low as a 0% deposit and payments can be spread over up to five years. The lender says businesses are also in line 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. It is 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 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 COIVD-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.”