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Asset finance
Van finance for tradespeople, sole traders and businesses
Finance a new or used van, or a small fleet, on hire purchase, lease purchase or contract hire. What self-employed buyers need, VAT and tax points, and costs.
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- Amount
- From £10,000 to £10 millionLarger amounts through secured, property and asset-based finance
- Security
- Secured or unsecuredOptions compared for your case
- Suitable businesses
- Sole traders to limited companiesPartnerships and LLPs too
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In short
The best way to finance a van depends on how long you will keep it.
Hire purchase suits a van you will run for years and fit out with racking or livery; lease purchase lowers the monthly cost with a final balloon; contract hire suits replacing vans every few years with fixed costs. Self-employed buyers usually need bank statements and tax returns, and a larger deposit helps newer businesses.
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About van finance
Van finance lets tradespeople, sole traders, delivery firms and companies get the van they need and pay for it monthly rather than upfront.
For most of these businesses the van is the business: without it, jobs and deliveries stop. Smart Funding Solutions is a broker, not a lender; we search our panel of 300+ lenders, including vehicle finance specialists, for van finance that suits you, whether it is a single used panel van or a fleet of new ones.
If you are still weighing up the agreement types for cars, vans and trucks together, our guide to business vehicle finance compares them side by side.
Replacing older vans to meet London or city clean air rules? See ULEZ compliant vehicle finance. For 3.5 tonne tippers and larger, see tipper truck finance.
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Not ready for the full application? Leave a few details and a broker will call you to talk it through. It is free, with no obligation.
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- Whole-of-market search across 300+ lenders
- Or call us on 01244 267694
Types of van finance
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Hire purchase
Learn moreYou pay a deposit, then fixed monthly instalments, and own the van after the final payment. Because it becomes yours, you can fit racking, add a tow bar or sign-write it freely. It suits trades that keep a van for many years.
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Lease purchase with a balloon
Similar to hire purchase, but part of the cost is deferred to a larger final balloon payment, which lowers monthly payments. You own the van once the balloon is paid, so plan how you will cover it, such as from savings, by selling the van or by refinancing.
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Finance lease
Learn moreThe lender owns the van and leases it to you for most of its working life. At the end you can usually sell it on the lender's behalf and receive most of the proceeds, or keep renting at a reduced rate.
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Contract hire
You rent the van for a fixed term and mileage, then hand it back, often with maintenance included. Costs are predictable and upgrades easy, but excess mileage, damage and removal of fitted racking or livery can bring charges on return.
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Business loans
Learn moreA secured or unsecured loan lets you buy the van outright and own it immediately. Unsecured loans usually need a personal guarantee.
Explore this section
In this section
More detail on specific needs within this topic.
Choosing the right van to finance
- Size and payload: match wheelbase, roof height and payload to what you carry, and consider access in towns and cities.
- New or used: new vans bring warranties and full history but lose value faster; used vans cost less but may need more maintenance. Lenders often set a maximum age at the end of the agreement.
- Electric or diesel: electric vans can cut running costs and help in clean air zones; see electric van finance.
- Conversions: tippers, Lutons, refrigerated bodies and racking can often be included in the finance if they are on the supplier's invoice.
Budget for the whole cost of running the van, including insurance, fuel or charging, servicing and tyres, not just the monthly payment.
Tax and VAT on vans
- Buying outright or on hire purchase: vans can generally qualify for capital allowances, including the Annual Investment Allowance.
- Leasing: rental payments are usually treated as a business expense.
- VAT: VAT-registered businesses can usually reclaim VAT on a van bought for business use, and on the VAT element of lease rentals.
- Private use: if a van is also used privately, only the business proportion is deductible, and employees may face a van benefit charge.
Rules change and depend on your circumstances, so speak to your accountant and see GOV.UK guidance on capital allowances.
Underwriting
What lenders look at
01
Trading history and income
bank statements, accounts or tax returns.
02
Credit profile
personal credit for sole traders; business and director credit for companies. Lenders use their own scoring, so there is no single minimum score.
03
The van
age, mileage, value and whether it comes from a dealer.
04
Deposit
a larger deposit can widen options, especially for newer businesses or adverse credit.
05
Affordability
whether income covers repayments alongside other commitments.
Finance of £25,000 or less to a sole trader or small partnership can be regulated consumer credit, which brings additional protections. Lending to limited companies and larger agreements are generally unregulated.
Checklist
Documents to have ready
- Proof of identity and address.
- Recent bank statements.
- Accounts or, for sole traders, tax returns or SA302s.
- The dealer's quote or invoice, including any conversion or racking.
Side by side
Compare your options
How the main business finance structures work. Lenders set their own terms, so treat this as a guide to the questions to ask.
| Option | How you repay | Security | Often used for |
|---|---|---|---|
| Unsecured business loan | Fixed instalments, usually monthly | No charge over assets; a personal guarantee is usually required | Growth, stock, tax bills and cash flow |
| Secured business loan | Fixed instalments, often over a longer term | A charge over property or other assets | Larger sums, property and refinancing |
| Revolving credit facility | Interest on what you draw; repay and redraw | Varies by lender and case | Recurring or uneven cash flow gaps |
| Merchant cash advance | A share of future card takings | No charge over assets | Card-taking businesses with uneven months |
| Asset finance | Regular payments over the life of the asset | The asset being financed | Equipment, vehicles and machinery |
| Invoice finance | Settled as customers pay their invoices | Your unpaid invoices | Businesses waiting on customer payment |
General information only. Every lender has its own criteria, and all finance is subject to status.
Comparing van finance quotes
- Total amount payable, including interest and fees.
- Deposit and any balloon payment.
- Term length: longer terms lower monthly payments but increase total cost.
- Early settlement terms and what happens if you want to upgrade early.
- Mileage limits and return conditions on leases.
You will also need commercial vehicle insurance that reflects how the van is used, and many trades need goods in transit and public liability cover.
The broker’s view
How we arrange van finance
Tell us about the van, the supplier and your business. We approach lenders suited to your trading history and the vehicle, and go through the offers with you before you commit. Once you accept, the lender issues the agreement for signature, pays the dealer directly and the van can be registered and collected. Decisions can come within a few working days once a lender has everything it needs. It is free to enquire, and any broker fee is disclosed separately before you proceed. Van finance is part of our wider asset finance service, and you can explore funding options online when you have found the van.
Calculator
Run the numbers first
Illustrative figures from the numbers you enter, before you speak to a lender.
FAQs
Questions clients ask
Can I finance several vans at once?
Yes. Fleet finance lets businesses fund several vans under one agreement or facility, which simplifies administration. Lenders look at your trading history, accounts and existing commitments to decide how much they are comfortable funding. Contract hire is popular for fleets because it fixes costs and simplifies replacement cycles.
Can I get van finance with bad credit?
Often yes, because the van itself is the lender's security, which makes van finance one of the more accessible options for businesses with adverse credit. Lenders use their own scoring, so there is no single minimum score, but recent defaults or unsatisfied judgments narrow the choice. A larger deposit or a guarantor can widen your options. Our guide to bad credit asset finance explains what lenders look for.
Can a new business or start-up get van finance?
Yes, some lenders will fund a van for a new business, usually with a larger deposit and sometimes a guarantor, because there is little trading history to assess. They look at personal credit, bank statements and any experience in the trade, and starting with a used van keeps borrowing modest. Finance of £25,000 or less to a sole trader or a partnership of two or three partners can be regulated consumer credit. Government-backed Start Up Loans are another route; see start-up business loans.
Can I get finance on a van from a private seller?
It can be harder, because many lenders prefer vans supplied by a dealer, where the invoice, history and title are easier to check. Some lenders will fund a private sale, usually with checks on outstanding finance, the registration document and the van's condition. Expect fewer lender options and possibly a larger deposit. If you already own a van outright and need cash rather than another vehicle, asset refinancing can release money against it.
How long does van finance take to arrange?
A lender can make a decision within a few working days in straightforward cases, once it has everything it needs. Having proof of identity and address, recent bank statements, accounts or tax returns and the dealer's quote ready speeds things up. Conversions, racking or bodywork from a separate converter can add time, because the lender needs the full invoice. Some lenders may use a soft search at the early stage, with a full credit search usually carried out on application.
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- DiscussTell us what the funding is for.
- Explore the marketWe search 300+ lenders and compare offers.
- Compare offersWe explain the options clearly.
- Move forwardChoose the right facility for your business.
What our clients say
“Simon was fast, kept us updated at all stages and was a real pleasure to work with on our asset finance. I highly recommend this company: excellent service all round.”
“Spoke with Simon, who managed to get me the loan I needed promptly. The whole process was very smooth and was completed within a few days.”
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail. Will use again in the future!”
“Simon was a pleasure to deal with and helped us find a business loan that matched our growth goals and future expansion plans.”
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours. Fantastic service, and I would definitely use them again.”
Why businesses choose Smart Funding Solutions
- Access to 300+ lenders
- Personal broker support
- No obligation discussion
- Free to enquire