Van finance for UK businesses
Van finance helps UK businesses acquire, upgrade or expand fleets without large upfront costs. Compare hire purchase, finance lease and contract hire from 80+ lenders - options from £1,000–£20m. Check eligibility in minutes with no obligation.
Last updated: October 2025, edited by Joe Morley, reviewed by Vivek Seda
Van finance vs van leasing: which is right?
Key takeaways
Choose van finance (HP or finance lease) if you plan to keep and use the van long-term; choose van leasing/contract hire if you want lower monthly costs and to upgrade regularly.
Amounts & terms: typically from £5k–£500k+, over 24–60 months (case-dependent)
Ownership: possible with hire purchase; no ownership with operating lease/contract hire
Mileage: leasing usually has mileage limits; HP/finance lease typically doesn’t
Speed: some providers can approve and fund in days (subject to valuation and documents)
Van finance vs van leasing:
Van finance usually means hire purchase (own the van at the end) or finance lease (use it long-term with options at term end). Van leasing (operating lease/contract hire) is a long-term rental with no ownership. If you want predictable low payments and frequent upgrades, leasing is often best; if you want control, customisation and potential resale value, HP/finance lease fits better.
Key differences between van finance and van leasing
Product | Best for | Ownership | Mileage limits | Upfront costs | Notes |
Hire purchase (HP) | Keep the van long-term | Yes (after final payment) | None | Deposit + VAT (often upfront) | Fixed repayments; straightforward path to ownership. More detail: /knowledge/hire-purchase/ |
Finance lease | High usage / customisation | No (you don’t take title) | None typical | Initial rental | Long-term use; you can often sell on behalf of lessor at term end. More detail: /knowledge/finance-leases/ |
Operating lease / contract hire | Lowest monthly cost & new vans | No | Yes (excess charges if exceeded) | Initial rental | Maintenance often included; return van at end. More detail: /knowledge/operating-leases/ |
Benefits of van leasing
Lower monthly payments
Often cheaper than financing
Access to new vans
Upgrade regularly without ownership risks
No depreciation worries
Return the van after the lease ends
Optional maintenance packages
Reduce upkeep costs
Tax advantages
Lease payments may be deductible as a business expense
Common use cases
Van finance is ideal for businesses that:
Want to own their vehicles long term
Have high mileage needs
Need specific customisations (e.g., refrigeration, branding)
Plan to keep vehicles for over 3–5 years
Van leasing is best for companies that:
Prefer new vehicles every few years
Want fixed costs and lower upfront payments
Don’t want the hassle of selling vehicles later
Need flexibility or operate under mileage limits
What affects your eligibility?
Lenders or lease providers will look at:
Business trading history (typically 6–12 months minimum)
Company or director credit score
Annual turnover and affordability
Type of van and contract length
Whether the agreement is secured or requires a personal guarantee
Having clear records and forecasts can help secure better rates.
Alternatives to van finance and leasing
Asset finance
Asset finance spreads the cost of multiple vehicles or equipment
Business loan
Business loans use funds to purchase a van outright
Hire purchase
Hire purchase is a popular form of van finance with ownership at the end
Operating lease
Operating lease is like leasing but includes maintenance and return options
Line of credit
Line of credit draws funds as needed to purchase vehicles or equipment
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.
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Our smart technology will compare quotes from up to 80+ lenders to help you find the ideal business loan.
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We'll be there to guide you through every step of the process.
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.
Trusted by over 17,000 customers
Benefits of van finance
Asset ownership
Option to own the van at the end of the term
No mileage restrictions
Ideal if your usage is high or variable
Customisation allowed
You can brand or modify the van
Potential resale value
Retain or sell the asset later
Fixed repayments
Easier budgeting over time
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
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Monthly interest
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Total interest
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Length of loan
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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
How to apply for van finance or leasing
1. Assess your needs
Decide whether ownership or flexibility is more important
2. Compare options
Use a broker like Funding Options by Tide to find the best deal
3. Choose a contract
Decide on van type, term length, and monthly budget
4. Submit documents
Provide bank statements, ID, and financials
5. Get approved
Many lenders respond in 24–72 hours
Frequently asked questions
What’s the difference between van finance and van leasing?
Van finance (e.g., HP/finance lease) spreads the cost to own or use long-term; van leasing/contract hire is a rental with lower monthly cost and no ownership.
Can I finance a used van?
Yes—many lenders support used vans from approved dealers; rates/terms depend on age, mileage and condition.
Are there mileage limits?
Leasing usually sets an annual mileage allowance (with excess charges). HP/finance lease typically have no mileage caps.
Do I need a deposit?
HP often needs a deposit (and VAT upfront); finance/operating leases typically start with an advance rental.
Can I customise the van?
Yes for HP/finance lease (check restrictions). Contract hire usually limits modifications.
EV vans: can I finance them?
Yes—HP, finance lease and operating lease are available for electric vans; total cost depends on price and residuals.
Will I need a personal guarantee (PG)?
Often for SMEs, especially on unsecured elements. Security and business profile can reduce PG requirements (case-by-case).
Will applying affect my credit score?
Initial eligibility checks can be soft; proceeding with a specific offer usually involves a hard search.
What happens at the end of each product?
HP: you own the van after the final payment. Finance lease: continue leasing or sell on the lessor’s behalf. Contract hire: return the van (charges may apply for damage/excess mileage).
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.