Allica Bank has launched a new £10m fund to support businesses with the purchase of electric vehicles (EVs).

This is part of a wider initiative to help businesses reduce their carbon footprint and achieve sustainability targets.

The new fund has been introduced following Allica’s latest broker survey of its asset finance brokers, in which 54% of respondents stated the main reason for their clients seeking sustainability-based finance was to purchase electric vehicles.

Allica has also discounted rates to fund electric vehicles, with the bank offering a 50-basis point (bps) reduction on its standard hard asset pricing, available for a limited time from the 1st of November through to the 31st of December this year.

Brandon Hall, head of sales – asset finance at Allica Bank, said: “Our latest survey of the broker community highlighted the growing demand from UK businesses looking for funding support to help improve sustainability, with making the switch to EVs top of the agenda.

“We hope that the new fund and rate reduction on electric vehicles will give brokers and their clients more opportunities to do that, along with the support of our award-winning business development team.”