Net Zero and the Asset Finance Industry: Have We Come to a Roadblock?
Many businesses are under ever-increasing pressure to make the transition to an EV fleet. However, the lack of government assistance has left many businesses apprehensive and wondering whether we are on track to reach the set net zero goals.
What Is Holding Businesses Back?
From financial and infrastructure challenges to lack of education, businesses have a number of things to consider before they can commit to running an EV fleet.
Financial Challenges
Despite the improvements to the financial aid that supports EV fleets, this help is not available to everyone, meaning that many businesses have been left weighing up whether the financial burden is worth the change.
As many businesses have gone into survival mode due to the current economic situation, this, coupled with the lack of financial support, has led to businesses being much more hesitant.
Leasing an EV fleet is a much larger financial burden than they’re used to, so unlike other businesses, who can spend without thinking, they have to decide whether or not it will aid or hinder their business in the long run before they can commit.
Range and Infrastructure Challenges
As a standard, many logistics companies have to travel long distances to get to their customers. At times this can be through quite remote locations, so having to rely on an EV fleet can pose a highly time-consuming issue…
The lack of charging infrastructure, particularly in the more remote areas, can cause major delays for drivers who consistently travel long distances. Although there have been more improvements and investments in charging infrastructure as of late, not all stations are equipped to support larger vehicles, such as HGVs, and even if they were, there is still the possibility they are all unavailable or out of order.
As well as this, most EVs have a lower range per single charge, which can make travel even more inefficient. By needing to stop and charge every 200 – 300 miles, or having to take a detour to reach a charging station in time, it can cause significant and costly increases not only to delivery time but also in the drivers’ hours.
These inconveniences are something businesses will have to keep in mind prior to deciding their routes, potentially having to extend routes just to accommodate the needs of an EV.
Lack of Knowledge
Despite the many industry experts out there providing advice and sharing what knowledge they can, you can never know for sure if this new vehicle type will suit your business needs.
Most businesses already know which type of van or HGV works for them and what they need to do to maintain their fleet. However, working with EVs is an entirely different ball game, so a business will have to learn and adapt as they go, something not everyone has the time or money for.
There are also concerns surrounding the technical training required to support an EV fleet. As not all technicians are trained to work on EVs, businesses will need to invest further time and money they may not have into training or recruiting new staff.
Although the industry has seen a large number of improvements, such as installing more charging stations and breakdown covers now supporting EVs, these concerns are still prevalent and viable, despite the numerous changes and tips offered by experts.
Where Does Asset Finance Come In?
Asset finance has been aiding businesses with their growth for many years, particularly with businesses who want to change their fleet entirely, without excessive cost, or those who want to invest in green initiatives.
The finance industry also supports businesses with a well-established ESG plan through funding and sourcing the assets they need, even if they may not be the most popular asset at the time. By providing them with the necessary support to invest even more in green fleets and assets, the industry is indirectly encouraging other businesses to do the same.
Despite all these issues, making the transition to an EV fleet could benefit your business and attract new, potential customers because you are investing in green initiatives. So, if you’re still hesitant to make the move, why not give asset finance a try?
At Dawsongroup Finance, we can support your business by sourcing and funding the assets you need, from electric vans to HGVs and even power solutions, with much less of a risk. Get in touch with our team and let us help you make the move!