Van finance for your business

Your van is how you earn. When it dies, or the business outgrows it, you need a replacement fast and on terms that make sense. We find van finance from lenders who understand trades, delivery and service businesses, and we get it sorted while you keep working.

Can I finance a van through my business?

Yes. Limited companies, partnerships and sole traders can all finance a van through the business. The van can be new or used, from a dealer or a private sale, depending on the lender.

The main options:

Hire purchase. A deposit, then fixed monthly payments. The van is yours after the final payment. The most popular route for owners who keep vans for years.

Lease or contract hire. Lower monthly payments, and you hand the van back at the end. Good if you like to change vans every few years and want predictable costs.

Refinance. Already own your van outright? You can release cash from it and pay it back monthly.

How hard is it to get van finance?

Easier than most finance, because the van itself is the security. Lenders will look at your bank statements, your trading history and the van. Sole traders, newer businesses and owners with a less-than-perfect credit file can often still get approved, though the terms will vary. Every application is subject to status.

Are vans tax deductible?

Vans can qualify for the Annual Investment Allowance, which currently lets businesses deduct up to £1 million a year of qualifying plant and machinery, including vans. VAT-registered businesses can usually reclaim the VAT on a van used for business. Cars are treated differently. How this applies to you depends on the type of finance and how the van is used, so check with your accountant before you buy.

New or used van?

A new van comes with a warranty, the latest safety kit and lower running costs, and lenders will happily fund it over four or five years. A used van costs less up front and loses value more slowly, though repairs can creep in. Lenders usually want a used van to be no more than ten years old by the end of the agreement. If your work depends on the van starting every morning, newer is usually worth it. If it's a second van for lighter jobs, used often makes more sense.

What you'll need to apply

That's usually it. Your Lending Expert will tell you if a particular lender wants anything else.

Should I pay cash for a van instead?

Sometimes it makes sense. Often it doesn't. A van loses value from the day you drive it away, while the cash you spent could have covered three months of wages or a tax bill. Spreading the cost keeps your buffer intact and lets the van pay for itself as it works. Paul wrote about this in Never pay cash for a depreciating asset.

How it works with Flite

Tell us the van you want, or the budget, and whether you want to own it. Your Lending Expert checks 120+ lenders, comes back with real monthly figures side by side, and deals with the lender and the dealer for you. Many clients have a decision within 24 to 48 hours.

Flite is free to you. We are paid by the lender when your deal completes.