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Van Finance Lease

Lower payments, and reclaim the VAT on your van.

A finance lease lets your company use a van for fixed monthly rentals, with a lower upfront outlay than buying.

You reclaim VAT on the rentals, and at the end you can sell the van and keep most of the proceeds.

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  • check A soft check that won’t affect your credit score
  • check Find your own van, or we’ll source it for you
  • check Limited-company specialists. Used or new
  • check A credit broker, not a lender, with a panel of trusted UK lenders

Subject to status and eligibility. Van Finance Limited is a credit broker, not a lender.

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Van Finance Lease for UK limited companies

Van finance for UK limited companies

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 and first-year businesses to established fleets that already run a dozen vans.

We fund amounts from £10,000 to £500,000. New or used vans, single vehicles or a full fleet. A finance lease is one of the four ways we do it, and this page walks through what it is, who it suits, and how the numbers usually look on paper.

What a finance lease is, in plain English

You choose the van; the lender buys it and leases it to your company over an agreed term. You pay rentals that cover the cost plus interest. At the end there’s usually a final “balloon” based on the van’s residual value, or you sell the van as the lender’s agent and keep the bulk of the sale proceeds.

It keeps more cash in the business than hire purchase, and the rentals are usually fully allowable against profits.

The VAT and tax angle

  • VAT: if your company is VAT-registered you can typically reclaim 100% of the VAT on a commercial-vehicle finance-lease rental (cars differ). See HP vs lease, tax treatment.
  • Profit & loss: rentals are generally an operating expense, which can be simpler than capital allowances.
  • Cash flow: lower initial outlay than HP frees up working capital.
  • Tax treatment depends on your circumstances. Confirm with your accountant.

Who a finance lease suits

It works well for VAT-registered limited companies that want lower monthly costs, plan to use the van for the medium term, and like the idea of recovering value at the end without the full cost of ownership up front. It’s popular where cash flow matters more than eventual ownership.

On balance, here’s what a finance lease gives your company and what to watch for.

✓ Upsides

  • Lower upfront cost and often lower monthlies than HP.
  • Reclaim VAT on the rentals (VAT-registered companies).
  • Rentals are typically allowable against profits.
  • You keep most of the sale proceeds at the end.

• Things to weigh up

  • You don’t automatically own the van. There’s a residual/balloon to manage.
  • You’re responsible for the van and its disposal at the end.
  • A final balloon payment or sale is required to close the agreement.

Example costs

Representative example: borrow £18,000 over 48 months at 9.9% APR representative. 48 monthly payments of approximately £456.

Total amount payable about £21,888 (excluding any deposit, option-to-purchase or documentation fees). This is illustrative only and not an offer. Your rate and payments depend on the lender, the vehicle and your circumstances, and are subject to status.

A finance lease usually shows a lower monthly than HP for the same van because a residual is deferred to the end. Get exact figures from the panel.

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.

We’ll Help You Every Step of the Way

Start the simple 3 step process to finance your van today.

Once you have completed the first step, we will arrange a call to answer any questions you may have and move quickly through steps two and three to get your vehicle successfully approved.

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  1. 01

    Complete the Form

    Complete the simple form below and apply online for the amount you need to grow your business

  2. 02

    Receive Fast Approval

    We will process your application and aim to get you approved for your desired amount in 24 – 48 hours

  3. 03

    Get Financed

    Congratulations! Now you’ve been approved for financing, you can acquire the vans you need to grow.

FCA-regulated credit broking Credit broker, not a lender Whole-of-panel lenders Limited-company specialists

FAQs

Straight answers to the questions we hear most, on eligibility, credit checks and how the process works.

How much can you finance?
We finance vehicle amounts from £10,000 to £500,000. We specialise in used van finance for UK limited companies, and we can arrange new van finance and fleet finance too, from single vans through to multiple vehicles at once. All finance is subject to status.
Can I reclaim the VAT on a finance lease?
VAT-registered companies can usually reclaim 100% of the VAT on commercial-vehicle finance-lease rentals, provided the van is used for business. Speak to your accountant about your specifics.
What happens at the end of a finance lease?
Typically you sell the van (as the lender’s agent) and keep most of the proceeds against the residual, or extend for a peppercorn rental. You don’t simply hand it back as with contract hire.
Is a finance lease better than hire purchase?
Neither is “better”, HP is for owning and high mileage; a finance lease keeps cash in the business and can be more VAT- and cash-flow-efficient. Our comparison lays it out.

Still have questions?

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Other finance options

Helpful guides

Plain-English guides on van finance, VAT and tax, written for UK limited companies.

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Tell us what you’re looking to finance and we’ll tell you what’s realistically possible across a panel of trusted UK lenders. One short enquiry, a soft check that won’t affect your credit score, no obligation. Subject to status.

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