Van finance can be beneficial for many people and businesses, whether you work in a trade, the beauty industry, events, or landscaping; vans can be useful for a range of different industries and careers – and van finance helps to make it accessible.
Some businesses rely on vans as their mode of transport to get from A to B, others rely on it as a mobile business – such as hairdressers or salons.
Whilst most people think of business vans, they might think of trades, but with mobile spas increasing throughout the UK, vans are becoming an important element to businesses in the beauty industry as well as industries which focus on the transportation of tools and equipment.
Whether you’re self-employed or run a business with multiple employees, there’s a van finance option to suit you. If you’re unsure what this is, then keep reading to find out which is best suited for you and your business.
Hire purchase (HP) is for those who want ownership at the end of the finance agreement. You can get business hire purchase finance, in this, you make monthly payments over an agreed amount of time with the finance company and own the vehicle at the end of the agreement. During this, you do not own the van, however, since you will own the van at the end of the agreement its likely you will be allowed to customise the van to have your logo, contact information etc.
Business contract hire is essentially PCP for businesses. You make monthly payments over a set timeframe, and at the end you can decide to return the van, lease another one, or pay a lump sum and own it. If you are planning on getting a business contact hire, you can get your van customised to suit your business, but if you’re returning it, it’s important to have any customisation removed so the van can be returned in good condition. This is something that you should clarify with the lender to ensure you don’t do anything to the vehicle which violates the contract you have with them.
When applying for business finance you may need to provide some extra documentation in order to be accepted by a lender. You’ll need to provide usual documentation such as proof of ID, bank statements, proof of address etc, but if you’re a limited company, you’ll have to supply additional information.
This can include your company registration number, tax information, and proof of your turnover and profit. If you’re self-employed, you may also be asked to provide this information.
If you’re a company in need of a van then van finance may be the best decision for you and your business. Not only does it allow you to spread the cost over a set period of time, but you can use the van to promote your business whilst doing so. It can help you get ownership of a van for your business without having to spend a large amount of money at once.
Spreading the cost over a number of months helps you to achieve both transport and advertising for your business at a set monthly price which is affordable to your business. If you need a van to support your business and want to spread the cost, van finance is the best option for you.