Business vehicle finance - Fund vans, cars and fleets for your company
Whether you need one van for deliveries or a fleet of cars for your sales team, business vehicle finance helps you spread the cost of purchasing or leasing vehicles. Instead of tying up capital, you can pay monthly while keeping cash free for growth.
Funding Options by Tide works with 80+ UK lenders, supporting over 17,000 businesses and securing £1bn+ in funding. Compare vehicle finance options and find the right deal for your business.
What is business vehicle finance and how it works
What is business vehicle finance?
Business vehicle finance covers different ways of funding company cars, vans, and fleets. Instead of paying upfront, you finance the vehicle through hire, lease or purchase agreements.
The main options include:
Hire purchase – Pay monthly and own the vehicle at the end.
Finance lease – Pay to use the vehicle for a fixed period, then sell or extend the lease.
Operating lease / contract hire – Long-term rental with no ownership at the end.
Chattel mortgage or secured loan – Borrow against the vehicle as security.
See our full guides to hire purchase vs finance lease and asset finance.
How does business vehicle finance work?
Choose the vehicle(s) you need – cars, vans, or specialist vehicles.
Decide if you want ownership or long-term leasing.
The lender buys the vehicle, and you make regular repayments.
At the end, you may own the vehicle, return it, or upgrade.
Repayments are tailored to your budget and trading history, with fixed or variable terms.
Benefits of business vehicle finance
An overview
Pros | Things to consider |
Spread the cost over time | Total cost is higher than paying upfront |
Preserve working capital for growth | May require a deposit or balloon payment |
Flexible options: own, lease or rent | Mileage and wear limits apply for leases |
Upgrade vehicles regularly | Vehicles may depreciate faster than expected |
Tax-deductible repayments in some cases | Late payments can affect credit rating |
Vehicle finance vs other options
Van leasing
Van leasing is great for businesses needing commercial vans without ownership costs.
Asset finance
Asset finance is used to fund vehicles, machinery and equipment.
Business loans
Business loans are best for one-off investments with fixed repayments. You borrow a lump sum and repay over months or years.
Commercial mortgage
A commercial mortgage essentially lets you spread the cost of purchasing a property, whether that’s a company headquarters or a warehouse. The loan uses the property itself as security and these loan types often come with lower interest rates when compared to something like a short-term business loan.
Eligibility criteria for business vehicle finance
Lenders usually look at:
Time trading (12+ months preferred)
Turnover and profitability
Credit profile (see bad credit loans)
Security (vehicles may act as collateral)
Purpose of the vehicles (delivery, operations, fleet management)
Example scenarios
A courier company finances three vans through hire purchase.
A consultancy leases cars for consultants, upgrading every 3 years.
A tradesperson uses a finance lease to access a specialist vehicle without a large upfront cost.
How does Funding Options work?
Tell us how much you need
We’ll ask a few questions about your business and the reason for your loan.
Get quotes instantly
Our smart technology will compare quotes from up to 80+ lenders to help you find the ideal business loan.
Apply for a Business Loan 🎉
We'll be there to guide you through every step of the process.
Trusted by over 17,000 customers
Why choose Funding Options by Tide?
Funding Options by Tide helps UK SMEs find fast, tailored business finance by connecting them with over 80 trusted lenders. Backed by Tide and FCA-regulated, the service is free and easy to use.
Compare 80+ UK lenders in minutes
We scan the market so you don’t have to, finding the right option for your business.
Trusted by 17,000+ UK businesses
From startups to established SMEs, we’ve already helped secure over £1bn in funding.
FCA-regulated and Tide-backed
We operate as a credit broker, not a lender, giving impartial access to multiple finance products.
Excellent customer experience
Our Trustpilot rating is 4.8 out of 5, based on 1,300+ independent reviews.
Personalised support
Our team can guide you through the process and help you choose the finance that fits your needs.
What can I use a commercial vehicle lease for?
HGV
You could use a commercial vehicle lease to gain access to essential Heavy Goods Vehicles for your business.
Cars
Whether you’re seeking a Range Rover lease, or looking to lease a smaller vehicle, a commercial lease could help.
Fleet
A commercial vehicle lease can also be used to gain access to more than one car, motorbike, or truck.
Find out more about commercial vehicle leasing
What is the difference between hire purchase and leasing?
Hire purchase leads to ownership at the end. Leasing is rental – you return or upgrade the vehicle. See hire purchase vs finance lease.
Can I get vehicle finance with bad credit?
Yes, but options may be limited. See bad credit business loans.
Is VAT included in repayments?
Leasing may allow VAT to be reclaimed, while hire purchase spreads VAT upfront. Always check with your accountant.
Can startups apply?
Yes, but lenders may require a deposit or director guarantee. See business loans for new businesses.
What happens at the end of the agreement?
It depends on the product: you may own, return, or upgrade the vehicle.
Estimate your costs today
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
Monthly payments
-
Monthly interest
-
Total interest
-
Length of loan
-
Total cost of loan
-
Financial product information
Representative example*
• 9.7% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,291.56. The total amount payable is £54,997.44
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 8.2% APR
Repayment period
1 month to 30 years terms
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
Vivek Seda
Business Finance Manager
Vivek is the Asset Based Lending Manager at Funding Options by Tide. Vivek has been in the industry for over 10 years, working for both lenders and brokers. His product specialisms cover Asset Finance, Invoice Finance, Property Finance and structured transactions.