Business van finance

No matter if your business is a limited company, PLC, partnership, or sole trader, there’s a business van finance deal for you.

Read this article to me

Looking to finance a single company van or fleet of company vans?

Financing one company van or a whole fleet of company vans 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 vans as you use them to make money for your business. Choose from purchase or lease options, refinance an existing commercial vehicle, even free up liquid cash from vans you already own. Whichever route you choose, van finance for business puts you in the driving seat.

Types of finance available

Hire purchase (HP)

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.

Hire purchase with balloon

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.

Finance lease

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.

Sale and leaseback

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.

Van refinance

Pay off the lump sum payment at the end of a HP w/ balloon purchase scheme without putting strain on cashflow. Simply keep the vehicle and repay the lump sum over time. Alternatively, choose van refinance to secure a better rate of interest from a different lender, or sell the van to raise liquid cash and then rent the vehicle back.

Which is the best type of finance for your business?

Type of finance	Balloon payment?	Do you own the van at end of contract?	Maintenance included?
Hire Purchase
Hire Purchase with balloon
Sale and Leaseback			Possibly
Finance Lease		Optional	Possibly
Operating lease	Possibly, or you may collect a surplus
Contract hire
Van refinance

Why use Swoop?

A dedicated funding manager will help find a tailored solution to your needs

Swoop is fully authorised and regulated by the Financial Conduct Authority

Swoop's technology paired with our funding managers networks means you'll have access to deals only available through us

Get funding fast - we can help you get finance in as little as 48 hours

How do I apply?

It’s quick and easy to apply for van or car finance online and our support team are on hand if you have any questions.

Quickly check if you qualify

Have your financial statements and vehicle quote ready.

Apply online in 10 minutes

Tell us about you and your business with our simple application.

Get your decision

If approved, you’ll receive a no-obligation, personalised quote.

Your loan is funded

Once you accept, we run some final checks to process your loan and deposit the money straight into your account.

Testimonials

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.

Lisa Quinton,

Avenue Flooring

Prefer to talk?

Contact our asset finance team if you have any questions

0203 868 0364

FAQs

Can I get a van on finance through my business?

Yes, you could get a van on finance as long as your business has sufficient income to repay the loan.

What are the rates?

Business van finance rates start as low as 3%.

Can I get business van finance with bad credit?

Yes, although you may 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 van finance you need.

Can my new business get van finance?

Yes. Lenders will usually ask to see one to two years trading figures before providing a loan, but there are special business van finance deals for new businesses and startups. Note that you may be asked to provide a personal guarantee and/or pay a higher rate of interest on your loan.

Can I finance a used/second-hand van?

Yes. Business van finance can be used to buy or lease new and used commercial vehicles.

Is a van 100% tax deductible?

Yes. A significant advantage to buying or leasing a company van over purchasing a company car is that 100% of the van’s cost can be claimed as a capital allowance. This means that the full value of the van is offset against your company profits, which reduces the amount of corporation you may pay. Additionally, you can usually reclaim 100% of the VAT element of the van’s purchase or leasing cost, and van operating costs, such as fuel, MOT and repairs are also tax deductible.

Can I claim my van lease payments on tax?

Yes. Lease payments and HP payments for commercial vans are 100% tax deductible.

Can a sole trader buy a van?

Yes, although they will buy their commercial vehicle in the same way that they would buy a car - as a private citizen, not a limited company. Van costs are 100% tax deductible for sole traders and if they are registered for VAT, they may reclaim 100% of the VAT element of the lease or purchase cost.

Can I get a business van without a deposit?

Yes, although you may be required to pay a higher rate of interest and fees.

Will buying a van reduce my tax bill?

Yes, if your business makes a profit. Van purchase, lease and operating costs are 100% tax deductible. These costs may be set against annual profits, which will reduce the net income liable to corporation tax for limited companies, or income tax for sole traders.

Can I lease a van if I’m self-employed?

Yes, although you may be required to pay a higher deposit, and/or rate of interest and fees.

Is it better to lease or finance a work van?

This depends on your business’ financial circumstances and what your long-term intentions for the van are. If you wish to eventually own the van, then a finance deal may be best for you, but keep in mind that this will usually mean higher monthly payments than leasing. If you only want the van for the term of the contract and do not wish to ever own it, and you want lower monthly payments, leasing may be the better option for you.