Horsebox finance for yards, transporters and equestrian businesses

This page covers finance for horseboxes used in a business, by companies, partnerships, sole traders and transport operators. Finance for an individual buying a horsebox for their own horses and leisure riding can be regulated consumer credit, which follows different rules and protections. If the box will be used partly or wholly for personal use, tell us at the outset so it can be handled correctly. Borrowing of £25,000 or less by sole traders and small partnerships can be regulated consumer credit, which brings additional protections.

An asset finance lender's first question is what the horsebox would be worth if it had to be sold. That depends on two things that age differently: the chassis, which is a commercial vehicle with a mileage, service record and annual test history, and the coachbuilt body, which is valued on the builder's reputation, the quality of the living area and the condition of the floor and ramp. A well-built box on a mainstream chassis from a recognised coachbuilder has a steady used market, and lenders are comfortable with it. One-off conversions, home builds and boxes on unusual or very old chassis are harder to fund and may need a larger deposit.

Weight class matters too. Boxes up to 3,500kg can be driven on a standard car licence and suit yards moving one or two horses. Boxes from 3,500kg to 7,500kg carry more horses and a larger living area. Larger lorries suit transporters and big competition yards. Each has its own buyers, and lenders know which hold their value.

A lender financing a horsebox for a business wants to know it can be used legally for the work you plan, because a box that cannot earn cannot be paid for. GOV.UK's guidance for horsebox and trailer owners sets out the main points:

• Operator's licence. A horsebox, or a vehicle and trailer combination, over 3,500kg maximum authorised mass used for commercial purposes generally needs a goods vehicle operator's licence. GOV.UK treats payment for transport, prize money from competitions and use for business purposes as commercial use. A restricted licence covers carrying your own goods; carrying other people's horses for hire or reward needs a standard licence. See being a goods vehicle operator.
• Driving entitlement. A category B car licence covers vehicles up to 3,500kg maximum authorised mass. Category C1 covers vehicles between 3,500kg and 7,500kg, and larger lorries need category C. Drivers who passed their car test before 1 January 1997 usually have wider entitlement, so check the categories on each driver's licence. See driving licence categories.
• Testing, tachographs and hours. Boxes over 3,500kg need an annual HGV test and a tachograph, and drivers' hours rules apply to boxes over 3,500kg or used commercially.
• Animal transport. Drivers carrying horses for commercial reasons on journeys of 65km and over need an animal transport certificate of competence.

If you are adding a lorry to an existing operator's licence, check that your authorisation has room for another vehicle before you sign. Our HGV finance page explains how operator licence financial standing works alongside vehicle finance.

A horsebox costs money when it is parked: insurance, testing, tax and servicing carry on whether or not it is earning. Test the payments against a quiet season, not a busy one. Floors and ramps need regular inspection, and repairs to an older box can be costly at the same time as finance payments. A balloon payment that falls due when the box is worth less than expected can leave a shortfall. If the box will only be used a few times a year, hiring one may cost less than owning one.

Before committing, check how capital allowances such as the Annual Investment Allowance apply to your box and your business with your accountant, since the treatment depends on the vehicle and how it is used.