Electric vehicle and charger finance for businesses

“EV loans” is the everyday name for any finance a business uses to get electric vehicles or the equipment to charge them. Most of it is not a loan in the strict sense. Vehicles are usually funded by hire purchase, a finance lease or contract hire, where the vehicle itself secures the agreement. Charge points are funded by asset finance, a business loan or the installer’s own payment plan.

The finance works the same way as it does for a petrol or diesel vehicle. What changes is the price, the grants and tax allowances, and a few EV-specific questions about batteries and charging. Our guide to business vehicle finance covers the products themselves in more detail.

The main options are the same as for any business vehicle:

The choice affects tax. Under hire purchase you are generally treated as the owner for capital allowances, while under contract hire the finance company owns the vehicle and you deduct the rentals. Our guides to hire purchase and contract hire explain each one, and our comparison of hire purchase and leasing sets them side by side.

For vans specifically, our van finance guide covers deposits, balloon payments and VAT.

The government’s plug-in van grant is a discount taken off the price by the dealer. GOV.UK says you do not apply for it yourself: the seller takes it off the purchase price. Only government-approved vehicles qualify.

• Small vans under 2,500 kg gross vehicle weight: GOV.UK says the maximum discount for some small vans is £2,500.
• Large vans from 2,500 kg to 4,250 kg: the maximum discount for some large vans is £5,000.
• Both must produce zero tailpipe CO2 and travel at least 96 km (60 miles) without emissions.

GOV.UK says there is a limited number of grants, so check availability with the dealer. When you finance a van, ask the provider to show the grant deducted from the price before the finance is calculated, so you are not paying interest on money you were never charged.

Workplace charge points can be funded in three ways, and they can be combined with a grant:

• Asset finance. Hire purchase or a lease over the charging hardware, sometimes including installation.
• A business loan. Useful when installation, groundworks and electrical upgrades make up much of the cost.
• Installer or supplier payment plans. Some providers bundle equipment, installation and maintenance into a monthly fee. Read who owns the equipment and what happens at the end.

GOV.UK’s Workplace Charging Scheme gives eligible businesses, charities and public sector organisations up to £500 per socket towards installing chargepoints at workplaces, for up to 40 sockets across all sites. GOV.UK says its chargepoint grant schemes have been extended for a final year and are available until 31 March 2027.

GOV.UK lists two first-year allowances that matter here. A business can claim a first-year allowance on new and unused electric or zero-CO2 cars bought before April 2027, and on equipment for electric vehicle charging points bought before April 2027. The same page shows the first-year allowance for zero-emission goods vehicles applied to purchases before April 2025.

Vans can still qualify for other allowances, such as the annual investment allowance, which our guide to capital allowances explains. How you finance the asset matters: GOV.UK says you cannot normally claim on items you buy to lease to other people, which is why a leasing company, not you, claims on a leased vehicle.

This is general information, not tax advice. Capzy does not give tax advice, so check the treatment of your purchase with your accountant before you choose a finance product.

Ask every provider these in writing before you sign:

• Is the grant deducted from the price before the finance is worked out?
• What is the total amount payable, including fees, and any balloon or final payment?
• On a lease or contract hire, what are the mileage limit and the excess mileage charge?
• What battery warranty comes with the vehicle, and does the finance agreement say anything about battery condition at return?
• What counts as fair wear and tear at the end of a lease?
• Can the charge point installation be included in the same agreement?
• Can I settle early, and what will that cost?
• Is a personal guarantee required?

Most finance for a limited company is not regulated consumer credit. Under the Regulated Activities Order, credit over £25,000 entered into wholly or predominantly for business purposes is exempt, and sole traders and small partnerships borrowing less may have more protection. Ask the provider whether your agreement is regulated.

It makes sense when the vehicle’s running pattern suits charging and the monthly cost fits your cash flow. Electric vans and cars suit predictable daily routes that return to a base with a charger. Long or unpredictable routes need a look at public charging along the way.

A few points help lenders and help you:

• Finance vehicles and chargers on terms that match how long you expect to use them, so you are not still paying for a charger after you have replaced it.
• Keep the grant, warranty and installation paperwork together, because a lender may ask for the invoice and the vehicle details before paying out.
• If you are replacing a vehicle that is still on finance, get a settlement figure first and include it in your sums.

Compare the total monthly cost, including finance, insurance, charging and maintenance, with the vehicle you would otherwise buy. More guides for particular trades are in our industry guides.

Capzy is a credit broker, not a lender, and the lender pays us when a facility completes. You can check your funding options with a soft search that does not affect your credit score. A lender’s full application may use a hard search, and all finance is subject to status and lender criteria. Our page on asset finance explains how lenders assess vehicle and equipment finance.