Van finance for new and start-up businesses
Starting a new business and need a van? We work with lenders who specifically support early stage and new start businesses - including companies with less than 12 months' trading history.
What is new business van finance? New business van finance is commercial vehicle funding specifically designed for startups, newly incorporated limited companies, and sole traders with less than two years of trading history. Lenders typically require a larger deposit and may assess the director's personal credit profile or request a personal guarantee to mitigate the lack of filed company accounts. If you're unfamiliar with these terms, our Van Finance Glossary explains them clearly.
The reality of funding a van in year one
Try walking into a high street bank for van finance without two years of filed accounts. They probably won't even look at your application. That's incredibly frustrating when you need a van right now just to start trading.
Fortunately, we work with specialist asset lenders who look at things differently. They get that early-stage businesses need vehicles to grow. They're actually willing to underwrite companies that have only been incorporated for a few months. Yes, the criteria are slightly different, but the funding is definitely out there.
What underwriters actually care about
If your company doesn't have a trading history yet, lenders have to find other ways to assess the risk. Here's what actually moves the needle:
- Director credit profile: this is the foundation. A clean personal file makes everything easier.
- Industry experience: if you have worked in the trade for years before incorporating, tell us.
- Proof of work: contracts, letters of intent, or even informal agreements show forward revenue.
- Deposit size: putting more money down upfront reduces the lender's exposure.
- The van itself: newer, lower-mileage vehicles hold their value better and are easier to finance. (See our used van finance page for age and mileage limits).
Which finance products make sense
For most new businesses, hire purchase is almost always the more viable route. You are buying the asset over time, the van goes on the balance sheet, and at the end of the agreement you own it outright. It tends to be simpler for lenders to approve on a new company than a finance lease because the security structure is more straightforward. Finance lease is another option, though it can sometimes be a bit trickier to secure without an established track record. (Read our full comparison on hire purchase vs finance lease).
Expect to put a deposit down
Let's be honest: zero-deposit finance is incredibly tough to secure if your company is brand new. Typically, lenders want to see you put down somewhere between 10% and 30% of the vehicle's value upfront. The exact number will depend heavily on the director's personal credit profile, your sector experience, and the age of the van you're buying (vans under five years old from a VAT-registered dealer are much easier to fund). However, if the director's personal credit is very strong, no deposit van finance can sometimes still be achieved. (Use our van finance calculator to see how different deposit amounts affect your payments).
Limited company versus sole trader
If you're a limited company, finance generally starts from around £10,000. Sole traders, however, operate under slightly different rules. For sole traders, van finance is arranged on unregulated credit agreements, which kick in at £25,000. If you're a sole trader needing a cheaper van, it might be worth having a chat with your accountant about incorporating. We don't give tax or structural advice, but we can definitely tell you how it affects the finance options.
Why use a specialist broker instead of a van dealer?
At a dealership, the salesperson's main job is shifting metal. The finance packages they offer are usually just a means to an end. Most dealers are tied to a couple of mainstream lenders who specialize in personal car finance, not the messy reality of commercial funding. That's why they often hit a wall when faced with a new business, a limited company without accounts, or a director with a few credit hiccups.
Add to that the fact that dealer finance rarely offers essential commercial perks like VAT deferral. Being able to push back the upfront VAT payment until your next VAT quarter is a massive cash flow advantage. Because a dealer's lender pool is so limited, you'll frequently find their rates are noticeably higher than what a specialist commercial broker can find.
We take a completely different approach. By working with over 100 UK lenders, we match your specific business to the right funder, rather than trying to force you into whatever narrow criteria the dealer's system dictates.
New business? Let's talk.
Every new business application is different. Call us or apply online and we'll take the time to understand your situation before recommending the most suitable approach.
How it works
Apply online
Tell us about your business, the vehicle you want to fund, and the amount you need. Takes about 2 minutes.
We review your application
A dedicated specialist reviews your application, contacts you to discuss your needs, and identifies the most suitable lenders.
We present your options
We present the finance options to you. Once you're happy, we contact the dealer to arrange the invoice. No obligation to proceed.
Funds released to the dealer
Once approved and you've signed your documents, funds are released directly to the dealer or seller, so you can take delivery of your van.
Popular van makes we finance
We arrange finance for all major van makes and models. Don't see yours? Call us on 01730 777 736.
Apply for van finance
Complete the form below and a specialist will be in touch, usually within one business day.
If you'd prefer to call: 01730 777 736