Rates from 8.9% APR. Representative Example: Borrow £12,000 over 5 years with a £0 deposit. Representative 19.8% APR fixed rate. Monthly payment: £306.04. Option to purchase fee £10 payable. Total cost of credit: £6,372.40. Total amount repayable: £18,372.40.
Car Finance 247 Limited is a credit broker, not a lender.
Looking for a new van for your business? Whether you’re self-employed or run a small company, business van finance could be what you need to get on the road in a new van while spreading the cost over a timeframe that works for you.
At Car Finance 247, we work with thousands of business owners every year, matching them with one of our trusted lenders. We’re here to guide you through the process and help make getting your next van as stress-free as possible.
Choosing business van finance could make it easier to manage costs and keep your company’s cash flow healthy. Instead of paying for a van outright, van finance for businesses lets you spread the cost over time, which could give you more flexibility and certainty of monthly payments.
There are plenty of benefits of van finance, including:
There are a few main commercial van finance options to choose from, and each has its own pros and cons. At Car Finance 247, we work with lenders who could offer Hire Purchase (HP) and Personal Contract Purchase (PCP).
Here’s how business van finance works with these two options:
Hire Purchase (HP): With HP, you may pay a deposit upfront, then make fixed monthly payments until the end of the contract, plus interest. Once the final payment is made, you own the van. As you’re paying off the full cost of the van over time, HP is generally more expensive monthly, but you don’t have any mileage limits or damage fees to worry about at the end.
Personal Contract Purchase (PCP): With PCP, you may also pay a deposit and monthly payments, plus interest. But when the agreement ends, you’ll have three choices: hand the van back, pay a final lump sum (known as the balloon payment) to own it, or trade it in for another one. PCP is usually cheaper monthly but you’ll have to pay a large fee if you want to keep the van, and you could incur fees at the end if there’s any damage to the van or you go over the mileage limits.
Here’s a side by side comparison of HP, PCP and leasing:
|
Feature |
HP |
PCP |
Lease |
|
Ownership at end |
Yes (after final payment) |
Optional |
No |
|
Monthly payments |
Higher |
Lower |
Lower |
|
Mileage limits |
No |
Yes |
Yes |
|
Deposit required |
Usually |
Usually |
Usually |
|
Flexibility at end |
Limited |
High |
None |
Ultimately, your payments can depend on the deposit you put down, the interest rate, and the length of your agreement. It’s important to think about your long and short term budget when making your decision.
For illustration purposes only. The rate and payment you may be offered will be based on your individual circumstances.
Dedicated account manager – If provisionally approved, you’ll have a dedicated account manager, who will help you with everything from choosing your car to finding you the best business car finance deals for your circumstances.
Wide lender panel – We work with a large panel of trusted lenders across the UK, and we aim to to find the best deals for you.
Experience helping businesses – Many of our lenders accept applications from small business and self employed people, even if you need van finance with bad credit, subject to status.
No deposit options – If you’re a small business owner or sole trader and are struggling to save up for a lump sum, some of our lenders could offer no deposit car finance options.
High Trustpilot rating – We’re proud of our high Trustpilot rating, which shows you can trust us to help you every step of the way.
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