No matter if your business is a limited company, PLC, partnership, or sole trader, there’s a business car finance deal for you.
Financing one company car or a whole fleet of company cars makes good business sense. Instead of putting strain on cashflow and tying up hard-won capital in your vehicles, spread the cost out over time. Pay for your cars as you use them to make money for your business. Choose from purchase or lease options, secure the tax advantages of electric cars, even free up liquid cash from vehicles you already own. Whichever route you choose, car finance for business puts you in the driving seat.
Protect your business cashflow. Spread the cost of buying new or used vehicles over time. Use the vehicle(s) as you pay for the vehicle(s). Just put down a modest deposit, then repay the balance of the purchase price with equal monthly payments. Never worry about rising interest rates, unseen costs, or mileage charges. HP payments remain fixed for the term of the loan, and you own the vehicle(s) outright when your last payment is made.
Keep your monthly payments extra low. Spread the cost of buying new or used vehicles over time but repay some of the purchase price at contract end with a lump sum known as a ‘balloon’. Use the vehicle(s) as you pay for the vehicle(s). Never worry about rising interest rates, unseen costs, or mileage charges. Payments remain fixed for the term of the loan, and you own the vehicle outright at contract end when you pay off the balloon.
Benefit from low monthly payments and maximum contract flexibility. Lease used or new vehicles and reclaim up to 100% of the VAT charged on your monthly payments – including maintenance, mileage, and service costs. Choose to buy the vehicle(s) at the end of the contract, opt for an operating agreement that could pay you back a surplus, or simply rent the vehicle(s) on long-term hire and hand them back at contract end.
Do more with the cash that’s tied-up in your vehicles. Sale and leaseback is like equity release. Recoup the cash value of your vehicles by selling them to a lender, then rent the vehicles back for business use. Stop sitting on a depreciating asset. Improve your balance sheet. Use the freed-up funds for working capital, investment, or to repay other debt. Pay a low monthly sum to use the vehicle(s), then return them to the lender when your contract ends.
Gain maximum economic advantage from your business vehicles. Buy, lease, or rent multiple vehicles on terms that support your business’ financial position. Tailor your fleet agreement to match your vehicle, price, mileage, and length of contract choice. Roll fleet support and servicing into the contract. Provide company cars as employee perks in the most tax advantageous way.
Make the world a greener place. Join the 40% of UK businesses who already choose electric vehicles. Save thousands in tax relief. Benefit from low running costs and high residual values when you sell the vehicle. Purchases of new and unused electric vehicles get 100% tax relief in the year of purchase, and users of full-electric company cars are not liable for Benefits in Kind taxation.
|Type of finance||Upfront deposit?||Balloon payment?||Do you own the car at end of contract?||Maintenance included?||Excess miles charges?|
|Hire Purchase with balloon|
|Sale and Leaseback||Possibly|
|Operating lease||Possibly, or you may collect a surplus|
It’s quick and easy to apply for car or van finance online and our support team are on hand if you have any questions.
Have your financial statements and equipment quote ready.
Tell us about you and your business with our simple application.
If approved, you’ll receive a no-obligation, personalised quote.
Once you accept, we run some final checks to process your loan and deposit the money straight into your account.
Tom Floodgate was extremely efficient in arranging the finance for 4 vans for our business. Tom dealt with the dealers for us and made the process very smooth, he took care of everything for us. Tom is very polite and friendly and extremely helpful; he kept us up to date throughout.
Yes, it is possible to finance a car through a business, although you may be liable for a tax known as Benefits in Kind, (BiK). This imposes income tax on the user for their personal use of the car.
Buying a car through a limited company is much the same as personally buying a car, except the business is the vehicle owner and the user is only the registered keeper. Does it make sense to buy a car through your business? This depends on what you will use the car for, the type of vehicle, the purchase price, the type of finance scheme you use, and the vehicle’s CO² emissions. The correct balance will bring advantageous tax benefits, an incorrect balance may make you liable for added taxes.
Business car finance rates start as low as 3%.
In most cases, if the vehicle is purchased, businesses can only reclaim VAT on car finance payments if the vehicle is used solely for business purposes. (This does not include your daily commute). If the car is used as a mix of business and personal use, you cannot reclaim the VAT. In most cases, if the vehicle is leased, businesses may reclaim 50% of the VAT on car finance payments, as well as on included charges for maintenance and excess mileage. See HMRC's guide on VAT rules for business car financing for details.
Business car finance can be cheaper than personal finance, depending on the tax advantages you can claim by using the vehicle for business purposes. Interest rates and fees and typically the same for business and personal car finance schemes.
Yes, you can still get car finance with poor credit history. although you many be asked to pay a higher deposit or higher interest rate and fees. Even if you have been turned down elsewhere, it may still be possible to secure the business car finance you need.
Even though key interest rates are edging upwards, they are still very low in historic terms. This means borrowing money is cheap, especially if you lock in a low rate now. Instead of tying cash up in the value of depreciating assets and putting strain on cashflow, finance your business vehicles to spread the cost and make the most of low interest rates on business car finance deals.
It can be. Leasing a car instead of buying with HP may create tax advantages for your business. However, lease options typically include a mileage allowance that you must stay within, or you will pay extra for every mile you use above the pre-agreed limit. Very high mileage costs can negate the tax advantages of leasing.
Yes. Lenders will usually conduct a credit check on your limited company, as well as the director(s). If you are asked to provide a personal guarantee for the loan you are liable for any defaults that may occur. Late or non-payments will be recorded on your personal credit report.
To obtain the best business car finance deals, UK businesses will typically need a credit score above 700, (although you may still be able to lease a car with lower scores). Not sure what your business score is? Check your business credit report and discover the best ways to improve your score now.
To apply for business car finance, you will typically need:
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