Vans, trucks, HGVs and fleets
Business van, truck and car finance
Finance a works van, a tipper, an HGV or a whole fleet, with the vehicle itself as the security.
Vehicle Finance at a glance
- Amount
- £10,000 to £500,000
- Term
- 12 to 60 months
- Security
- The vehicle. The lender owns it under hire purchase, lease purchase or contract hire. A personal guarantee may be requested. No property security needed.
- Time to funding
- Dealer sales are quickest; private sales take longer while the seller is verified.
- Typical use
- A van for a trade, a fleet of delivery vans, a tractor unit and trailer, company cars, replacing an ageing fleet
- What you'll need
- The vehicle details and a quote or invoice, your Companies House number or trading details, photo ID, and recent bank statements
What it is
What is business vehicle finance?
Business vehicle finance is asset finance applied to something with a number plate. The vehicle secures the agreement, which keeps the rate below unsecured lending and lets the term stretch to several years. Three structures do most of the work: hire purchase, lease purchase (hire purchase with a larger final payment) and contract hire, where you rent the vehicle and hand it back.
The vehicle has to be used for the business. That is what makes it commercial finance rather than consumer car finance, and it is why the assessment reads your business and its bank statements rather than your payslips. VAT treatment differs between buying and leasing, and between vans and cars, so ask your accountant before you choose.
Worked example
A worked example
- A plumbing business buys a £40,000 panel van (plus VAT) from a dealer on lease purchase over 60 months with a £12,000 final payment.
- The final payment is due at the end of month 60, and the van is the business's once it is paid.
- At the end of five years the business pays the final amount, refinances it, or part-exchanges the van and puts any equity into the replacement.
A final balloon lowers the monthly figure and raises the total cost. Set it at or below what the van will genuinely be worth in five years.
Is this right for you?
Is business vehicle finance right for you?
Good fit if…
- The vehicle is used for the business and the business is trading.
- You want to keep your cash for wages and stock rather than sink it into a van.
- You want a fixed monthly cost you can plan around.
- You are replacing a vehicle that is costing you more in downtime than a payment would.
Probably not if…
- The car is for private use. That is consumer finance, assessed on your personal income under different rules.
- You are buying an unusual import or a Category S or N write-off. Most lenders will not touch it and the ones that do price it accordingly.
- You cannot cover the final payment and have no plan to refinance or sell.
- You need cash for something other than the vehicle. This money goes to the seller, not to you.
What it costs
What business vehicle finance costs
Vehicles price better than most equipment because the resale market is deep. Where you buy moves the rate as much as anything.
- Interest rate
- Rates are set by the lender for your deal, not by us, and depend on your trading, your credit file and the product. Vehicle finance generally prices below unsecured lending. New from a dealer prices sharpest, private sales price highest.
- Documentation fee
- A one-off documentation fee at the start of the agreement is common.
- Ongoing and end fees
- Hire purchase and lease purchase often carry an option-to-purchase fee with the last payment. Contract hire can carry excess mileage and damage charges at hand-back.
- Paying it out early
- Most of these are fixed rate agreements, so an early settlement is a calculated figure rather than the remaining balance. Get a written settlement figure before you agree to part-exchange the vehicle.
Bizzloans is a commercial finance broker, not a lender. The lender that funds your deal pays us a commission, which we disclose to you. You pay us nothing to compare.
Eligibility
Who can apply
- A UK business: limited company, LLP, partnership or sole trader
- Photo ID (passport or driving licence) for each director, partner or owner
- Bad credit considered
- The vehicle must be used for the business
Don’t meet these? Talk to us. We have lenders for most situations, and we’ll tell you straight if we don’t.
Contact usWhat you'll need
What you’ll need
No documents
To get a quote
- Nothing. The vehicle, the price, whether it is new, used or private, and your turnover is enough.
- No credit file is pulled to compare.
Once you pick a lender
To settle
- The dealer invoice, or the seller's details on a private sale, showing the registration and VIN
- Your Companies House number, and photo ID and proof of address for each director
- Recent business bank statements
- Proof of insurance for the vehicle
- For private sales: a vehicle history and finance check, and the seller's bank details
How it works
How it works
Same day
Send the vehicle details
Make, model, year, mileage, price, and whether it is coming from a dealer or a private seller. Those five things shape the pricing before anything else is assessed.
Once your details are in
We match lender to vehicle
Lenders have very different appetites for age, mileage and private sales. We go to the ones whose criteria the vehicle fits, so you are not declined on the vehicle after being approved on the numbers.
Complete and collect
The lender pays the seller directly and confirms insurance. Then you collect the vehicle. Money never goes to a private seller before the checks clear.
This vs the alternative
Hire purchase vs lease purchase vs contract hire
Three ways to finance the same van. The monthly payments can look similar; the ownership and the VAT treatment do not.
| Hire purchase | Lease purchase | Contract hire | |
|---|---|---|---|
| Who owns the vehicle during the term | The lender, until the final payment. | The lender, until the final payment. | The lender. You rent it. |
| At the end | It is yours once the last payment and any fee are made. | It is yours once you pay the larger final payment. | You hand it back, subject to mileage and condition. |
| Monthly payments | Higher, because there is little or no balloon. | Lower, because a slice is deferred to the end. | Often lowest, because you only pay for the depreciation you use. |
| VAT | Treated as a purchase. | Treated as a purchase. | Charged on each rental. Recovery differs between vans and cars. |
| Who it suits | A business keeping the vehicle for the long run. | A business wanting ownership with lower monthly payments. | Fleets that cycle vehicles and want predictable costs. |
General information only. VAT recovery and capital allowances on vehicles depend on the vehicle type and how it is used, and HMRC rules change. Your accountant should confirm the treatment before you sign.
New, used or private sale: what actually changes
| New from a dealer | Used from a dealer | Private sale | |
|---|---|---|---|
| How fast | Fastest. Invoice in, agreement signed, vehicle collected. | Much the same, once the dealer issues the invoice. | Slower, while the lender verifies the seller and runs a finance check. |
| What the lender checks | Dealer invoice and VIN. | Invoice, VIN, mileage, and sometimes an inspection. | Outstanding finance check, seller identity, seller bank account, often an independent inspection. |
| Watch out for | Delivery delays pushing completion past the approval expiry. | Warranty and service history: the lender checks the security, not whether it is a good buy. | Never pay the seller yourself before the lender's checks clear. If you are being pushed to, stop. |
Age limits on the vehicle
Almost every lender works to an age-at-end-of-term rule rather than an age-today rule. A 7-year-old van on a 5-year term is assessed as a 12-year-old van.
- Cars and vans have a maximum age at the end of the term, which varies by lender.
- Trucks and HGVs often run longer, because the working life is longer.
- An older vehicle usually means a shorter term, a higher rate, or both.
- Ex-rental, ex-fleet, written-off and imported vehicles are treated differently by every lender. Tell us up front.
FAQ
Vehicle Finance questions
Can I buy from a private seller?
What is a balloon or final payment?
How old can the vehicle be?
Can a sole trader get business vehicle finance?
How is VAT treated?
Do I need insurance before I collect?
Can I finance more than one vehicle at a time?
What if I want to sell the vehicle mid-term?
A person reads this, not a scoring engine
A named advisor takes your file to the lenders on the panel that fund your industry and your turnover, and tells you plainly when business vehicle finance is the wrong answer and what to use instead.
Ready when you are
Compare Vehicle Finance today
Comparing is free, you’re never locked in, and checking won’t affect your credit score. If we can’t help, we’ll tell you that too.
