Independent lender White Oak has developed a new Green Fleet product to help the UK’s SME fleets go electric.

White Oak’s new Green Fleet hire purchase agreement will enable businesses to invest in a full range of greener vehicles; from cars and vans to HGVs and encompassing both fully electric and hybrid vehicles

The new financing option will enable businesses to invest in a full range of greener vehicles; from cars and vans to HGVs and encompassing both fully electric and hybrid vehicles.

The Green Fleet offering enables businesses to acquire qualifying assets with as low as a 0% deposit and payments spread over up to five years.

It’s structured as a hire purchase agreement, giving customers the option to own the asset in full at the end of the scheme.

The funding will also enable businesses to take advantage of the accompanying tax, congestion charge and fuel savings from switching to electric vehicles.

Businesses can also use the offering to finance any vehicles which qualify for the UK super deduction allowance; following the announcement of the scheme in the 2021 Spring Budget, the Government confirmed that brand-new commercial vehicles meeting qualifying conditions are included, although cars are exempt.

In addition to financing green assets, White Oak is continuing its work to support businesses driving carbon emission reduction through loans.

James Felton, chief operating officer of White Oak Europe, said: “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.”