Commercial vans are a staple for British businesses across the nation, used for any function from a sole-trader plumber to a delivery van for the UK’s largest distribution firms.
Businesses of all sizes are attracted to the benefits of financing their vans, to easing the burden on cash flow, possible business tax relief, and the ability to upgrade to more advanced vehicles more regularly.
There are many ways to finance a van for your business. Here’s a guide to help you:
How to finance a van:
Van Hire Purchase
Your business pays an initial deposit followed by fixed monthly payments. At the end of the agreement you have the option to purchase the van, and your business will own it once the final payment has been made.
Van Operating Lease
An operating lease involves your business renting the van for a short time period. Maintenance and service are often included and provided for you. The leasing company owns the vehicle, and it’s returned to them at the end of the lease term.
Van Finance Lease
With a business finance lease, your business rents the van for an agreed period. At the end of the lease, your business either returns the van, or continues leasing it.
Business Loans
Your business can take out a loan to pay for a van outright. Your business will have full ownership of the vehicle from day one and can therefore qualify for capital allowance tax benefits (if applicable).
Our panel of lenders have an appetite for commercial van finance due to their residual value and their usability for commercial activity. Set up a call with Mill Wood so we can guide you through the various van finance options available to your business.
What are the tax implications if you finance a van?
There are a number of tax incentives available if you wish to finance a van for your business.
From capital allowances, VAT relief, and benefits-in-kind, there are tax relief schemes designed to ease the burden of acquiring a new van for your business.
If you’d like to learn in detail about the various tax implications, have a look at our blog which will guide you.
For over 25 years, we have been helping UK businesses to access finance solutions they wouldn’t be able to find on the high street.
We believe in excellent, honest, straightforward business. By working with us, you’ll have your own broker on the end of the phone rather than going through endless call centres.
Our specialty is in putting together compelling business cases for your van finance requests. We take the time to understand your business, as well as your financial objectives.
Lenders trust our judgement and commitment to sensible, responsible lending. This reputation provides us with enviable access to competitive repayment terms and potentially wider affordability multipliers compared to the high street lenders.
If you want to speak to a broker who understands asset finance, get in touch.