Proterra Inc. announced it entered into an agreement with Key Equipment Finance to offer a simple, straight-forward financing package for transit agencies, corporations and other commercial entities seeking to purchase Proterra buses.
The new partnership is designed to provide transit agencies with an additional method of funding the local portion of Federal Transit Administration (FTA) supported bus purchases. With many federal grant programs no longer available and many transit properties unable to secure the local match dollars needed to supplement their FTA funding, this new option will be attractive to agencies of all sizes looking to upgrade or expand their fleets.
Under terms of the deal, purchasers can finance up to 100% of the cost of each bus, allowing them to spread their payments over time and provide for a capital cushion in an uncertain economic environment.
With the growing movement toward more sustainable transportation, Proterra and Key Equipment Finance also believe that this financing option will generate interest from commercial buyers, including corporations and colleges and universities, who are more accustomed to equipment financing.
Because Proterra buses have been proven to dramatically reduce fleet operating expenses through significant fuel and maintenance cost savings, Proterra predicts that many agencies and corporations will be able to pay for the bus financing with these savings.