Financing EV Chargers for Business: A Practical Guide

Electric Vehicle (EV) chargers are becoming more common – and it’s happening fast.

They serve as the power source for electric vehicles, which are taking center stage in the global push for cleaner and more sustainable energy use. The boom in the EV market is not just a wave—it's a seismic shift that businesses cannot afford to ignore.

Why should you care? Its all because of the growing influence of eco-conscious consumers and the increasing prevalence of electric vehicles on the roads.

As more people switch from traditional gas-powered cars to electric ones, the demand for convenient charging options also grows. Therefore, installing EV chargers at business locations can be a smart move.

However, the installation of these chargers requires a significant up-front investment. That's where financing comes into play.

Businesses have several options for funding these installations, ranging from loans and leases to grants and partnerships.

So… we'll show you the benefits businesses stand to gain from EV charger installation, explore various financing options, and go through a step-by-step guide to securing funding.

Let’s get started…

Understanding the Benefits of EV Chargers for Business

Installing EV chargers can transform a business in surprising ways, offering advantages that extend beyond the obvious environmental impact.

For example... 

Attracting Eco-Conscious Customers and Serving Employees

One of the most significant benefits of installing EV chargers is their appeal to an increasingly eco-conscious consumer base.

As society becomes more environmentally aware, consumers are making conscious choices to support businesses that align with their values.

Having an EV charger on-site acts as a beacon for these customers... signaling your commitment to sustainability and clean energy. Not only does this attract customers to your business, but it also fosters loyalty and encourages repeat visits.

But the benefits aren't limited to your clientele. If your company employs people who drive electric vehicles, providing charging facilities is not only a convenience but can also be seen as a valuable employee perk. This could aid in attracting and retaining top talent, particularly those who value companies that take active steps towards environmental sustainability.

Long-Term Cost Savings

While the initial cost of installing EV chargers may seem high, it's important to consider the long-term savings. The cost of electricity is significantly lower than traditional fossil fuels, meaning running an EV charger is cheaper over time. Additionally, many regions offer incentives or rebates for businesses that install EV charging stations, which can offset the initial installation costs. Over time, these factors can lead to substantial savings for your business.

Aligning with Corporate Social Responsibility Goals

More and more businesses are recognizing the importance of corporate social responsibility (CSR). By taking steps to minimize their environmental impact, they're not only improving their public image but also contributing positively to the world. Incorporating EV chargers into your business operations can be a key part of your CSR strategy.

Installing EV chargers reduces reliance on fossil fuels, a major source of greenhouse gas emissions. This aligns directly with many companies' goals to reduce their carbon footprint and contribute to a healthier planet. Furthermore, it sends a powerful message to stakeholders - including employees, customers, investors, and the wider community - about your commitment to sustainable practices.

Different Financing Options for EV Chargers

As the world transitions to cleaner energy solutions, businesses are presented with an array of financing options to install electric vehicle (EV) chargers. Each option offers its unique advantages and challenges. Let's take a closer look at four primary finance sources: leasing, loans, grants, and partnerships.

Leasing

Leasing is similar to renting property. In this case, you pay monthly installments to use the charging equipment owned by another company. This option provides flexibility as it allows you to upgrade the chargers easily when newer models become available. However, long-term costs may be higher since you never own the equipment outright.

Financing

Financing is another viable option. Financing involves borrowing a lump sum to purchase and install the EV chargers, which is then repaid over time. This option might be suitable if you have a good credit rating and want full ownership of the chargers.

We offer financing for all types of EV Chargers for business. Click here to get started now. 

Grants

Grants are essentially free money given to promote initiatives like green energy. Various government bodies and organizations offer grants to businesses willing to switch to more sustainable practices. The main advantage of a grant is that it doesn't require repayment. However, they can be hard to qualify for, often require detailed (and lengthy) applications, and may come with stipulations on how the funds are used.

Partnerships

Partnering with an EV charging provider could be another way to finance your charging stations. In such arrangements, the partner typically covers the upfront costs, and the revenue generated from the charging services is shared. This approach can help spread the cost and risk, but it also means sharing control and profits with another entity.

In choosing a financing option, consider factors such as your budget, business goals, and risk tolerance. Remember to weigh the pros and cons of each method carefully before making a decision. Ultimately, the best choice will depend largely on your unique circumstances and long-term strategy.

Steps to Secure EV Charger Financing

Securing financing for EV charger installation might seem daunting at first, but with the right strategy and approach, it can be a smooth process.

The first step is to understand your options and start researching possible lenders and grant programs.

Researching Potential Lenders and Grant Programs

There are various avenues you can explore when looking for financing.

The federal government is going all-out on green energy - so don't overlook the potential of grant programs. $5 billion dollars over 5 years was allocated in 2022 for a national EV charging network. 

These could be offered by government bodies, non-profit organizations, or even some corporations. 

You also might try your bank - although this often only works if you have a sizable business.

(Banks claim to lend to small businesses... but rarely do...)

If your goal is to find financing fast, an equipment financing company like ours could be your best option. Click here to get started. 

Preparing a Compelling Business Case or Proposal

After identifying potential sources of funding, you'll need to convince them to invest in your project. This is where a strong business case or proposal comes in. Your proposal should clearly articulate the benefits of the EV chargers for your business, such as attracting a larger customer base or reducing your carbon footprint. It's also essential to include a detailed breakdown of costs and anticipated return on investment. Providing clear and well-researched financial projections can significantly enhance the persuasiveness of your proposal.

Fulfilling Requirements and Criteria for Funding

Lastly, be aware that securing funding will likely involve meeting certain requirements or criteria. These may include demonstrating the financial stability of your business, showing proof of ownership of the location where the chargers will be installed, and providing a solid business plan that demonstrates the profitability of the charger installation. In some cases, there might also be technical or environmental criteria to meet. For example, some lenders might require that the charger installation adheres to certain energy efficiency standards. Therefore, it's crucial to understand these requirements upfront, so you can prepare accordingly.

By carefully researching your options, crafting a compelling proposal, and ensuring you meet the necessary criteria, you can position your business successfully to secure the financing needed for EV charger installation. Remember, this is not just an investment in technology; it's an investment in the future of your business and the planet.

Conclusion and Next Steps

The various financing options available, including leasing, loans, grants, and partnerships, offer businesses the flexibility to navigate their unique financial landscapes. Each option comes with its pros and cons, but they all pave the way for businesses to embrace this burgeoning market. Remember, the process of securing financing may initially seem daunting, but with careful planning and a compelling proposal, it can be made achievable.

If you'd like to get a quote for EV Charger Financing, fill out the form below or call (866) 631-9996.