2 min read
Why EV charge-point firms need working capital
Installing EV charge points across car parks, commercial properties, and fleet depots is a sector with strong tailwinds but demanding cashflow requirements. Equipment — chargers, cable management, switchgear, and metering — must be procured and often held in stock to meet short lead times on commercial contracts. Labour costs, including OZEV-registered electricians, are payable weekly even when project invoices run on 30- to 60-day terms.
For firms winning framework agreements with local authorities or property management companies, the gap between mobilisation and first payment can run to several months, making working-capital finance a practical necessity rather than an optional extra.
Equipment and van fleet investment
A growing charge-point installation business needs dedicated vans, cable-drum trailers, and specialist cable-pulling and testing equipment. Funding these via a business loan or asset finance spreads the capital expenditure and preserves cash for day-to-day trading. Directors should discuss the tax treatment of these assets with their accountant, as the availability of capital allowances can influence whether a loan or a lease structure is preferable.
Scaling to meet framework contracts
Winning a place on a public or private sector framework for EV infrastructure is a significant commercial milestone, but frameworks often require a firm to demonstrate financial standing before award. A committed credit facility can serve as evidence of capacity and may help secure larger framework lots.
Once on a framework, rapid mobilisation across multiple sites simultaneously can require a significant short-term injection of working capital, which a revolving facility can provide without the delays of a new loan application at each project.
How lenders assess EV installers
This is a young, growing sector, so lenders will place particular emphasis on the quality of contracted pipeline, the experience of the management team, and the technical accreditations held. OZEV registration, NICEIC or NAPIT membership, and ISO certification are positive signals.
- Signed framework or project contracts
- Management team track record in electrical contracting
- Accreditations: OZEV, NICEIC/NAPIT, DNO approval
- Two or three years' accounts or strong management accounts
Frequently asked questions
Can a newly incorporated EV installation company access commercial lending?
Start-up or early-stage businesses face more scrutiny, as lenders typically rely on trading history. Strong signed contracts, experienced directors with industry backgrounds, and personal guarantees where appropriate may help, but each case is assessed individually.
Are there grants we should explore before borrowing?
Certain EV infrastructure programmes and Innovate UK schemes may reduce the capital requirement. It is worth exploring these with your adviser before committing to the full amount of a commercial facility, as grant funding does not require repayment.
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.