Compare Van Finance Types

How to fund a van through your limited company

At Van Finance Limited we arrange vehicle finance for UK limited companies. We are specialists in used van finance, and we place deals across a panel of trusted UK lenders. From newly formed companies to established fleets already running a dozen vans.

We fund amounts from £10,000 to £500,000. New or used vans, single vehicles or a full fleet. Most business owners run into the same wall on the high street: a young limited company, a used van, maybe a decline already on file, and a mainstream lender that says no before it has looked at the business behind the application. Our job is to skip that. One short enquiry, the whole panel, a real answer.

Which product fits depends on whether you want to own the van, reclaim VAT, keep the monthly low, or release cash from vans you already own. Here is a plain-English guide to the four ways, and how they compare on the numbers that matter.

The short version

Want to own the van and cover high mileage? Hire purchase. Want lower cost and VAT-efficiency while keeping cash in the business? Finance lease. Want the lowest fixed cost and to hand it back? Business van leasing. Already own vans and need cash? Asset refinance.

To make the trade-offs easier to see, here’s the same picture side by side.

How to choose the right one

Hire purchase is the classic own-it option. You put down a deposit (or none), pay fixed monthlies, and the van belongs to the company at the end. There are no mileage limits, so it suits high-mileage trades who plan to keep the van beyond the finance term. If you are a builder, plumber, sparks or courier who tends to run vans into the ground, this is usually the right pick.

Finance lease keeps more cash in the business and, for VAT-registered companies, reclaims VAT on the rentals. That makes it one of the most tax-efficient routes. You do not automatically own the van; at the end you sell it as the lender’s agent and keep the bulk of the sale proceeds, or extend for a peppercorn rental. Good fit if cash flow and VAT efficiency matter more than owning outright.

Business van leasing is a fixed monthly cost for a fixed term and mileage, with the van handed back at the end. Lowest monthly of the four, no depreciation risk, and you can bundle in maintenance for a predictable all-in figure. Suits companies that like to refresh vans every three or four years and have a reasonably stable annual mileage.

Asset refinance works the other way round. Instead of buying a van, you release cash from vans you already own. Either through a sale-and-HP-back or by refinancing an existing agreement onto better terms. You keep using the vehicles throughout, and the cash goes back into stock, tools, tax bills, or growth.

Not sure which to pick? Try the van finance calculator for a quick estimate, or send us a short enquiry and we will point you at the option that lines up best with your numbers.

Ready to see the numbers for your business?

Tell us what you want to fund and a bit about your company. We take one short enquiry to a panel of trusted UK lenders and come back with what is realistically possible for you. No hard sell, no full application to find out.

Amounts from £10,000 to £500,000. New & used vans, single vehicles through to fleets. Newly formed limited companies and previous declines are welcome. Decisions are subject to status.

Start the simple 3-step process below and we will come back to you, quickly.