Business Loan Broker > Asset Finance > Commercial Vehicle Finance

Commercial Vehicle Finance

FinCred CF is a broker of many commercial vehicle finance solutions. Find out exactly what commercial vehicle finance is, and how we can help you use it to gain use of the commercial vehicles you need for your business, with the option to own the vehicles or lease them for a short or long period.

What is Commercial Vehicle Finance?

Commercial vehicle finance is a type of fixed asset funding, falling under a hire purchase or leasing agreement. It allows your company to purchase or lease a fixed asset, such as a new piece of machinery or a fleet of vehicles, without having to pay the total cost of the asset upfront. 

Your business will enter into an agreement whereby the commercial vehicle finance provider will purchase the new asset and your business will then pay for that asset over a set period of time and in accordance with your asset finance or lease agreement. 

This allows you to spread the cost of the purchase over a longer time, reducing the initial outlay and helping to sustain a favorable cash flow position.

Commercial vehicle finance is the common method of purchasing the following business assets:

  • Vehicle fleet, including cars
  • Trucks/HGVs & trailers
  • Buses/coaches
fleet of commercial vehicles

Is Commercial Vehicle Finance The Best Option for My Business?

Commercial vehicle finance as part of a hire purchase agreement can be an ideal solution if your business has capital expenditure on assets as part of your growth strategy. For example a fleet of vehicles in the transport and logistics industry, metal fabrication machinery, or industrial equipment. 

Commercial vehicle finance can be suitable for your business under a lease agreement if you are not looking to own the asset at the end of the agreement or you only need to use the vehicle(s) for a short period of time.

The total cost of purchasing a commercial vehicle, or fleet under a Hire Purchase Agreement can be spread over a long period, often 3 to 7 years but can be shorter or longer, allowing you to retain working capital in your business whilst meeting your growth targets.

There is also the option to lease commercial vehicles and fleets by way of a finance lease or an operating lease. If you need assistance determining which is suitable for your needs, please contact us.

Am I Eligible for Commercial Vehicle Finance?

 

Commercial vehicle finance providers will consider various factors when deciding your eligibility. 

These include: 

  1. The financial strength of your company
  2. Your ability to meet repayments
  3. The asset which you are proposing to purchase (often a commercial vehicle)

You will have to be a UK-registered private limited company, public limited company, or a limited liability partnership. Commercial vehicle finance agreements are available for businesses operating in a wide range of markets, including transport and logistics, manufacturing, automotive aftermarket, food and drink, and many more.

How Much Does Commercial Vehicle Finance Cost?

The cost of a commercial vehicle finance agreement can vary depending on the financial strength of your company, the period over which you require the asset to be financed, the type of asset you are financing, and whether you are opting to purchase or lease the asset.

There is usually a flat rate charged for financing the asset over the agreed period, but this will vary depending on the type of finance required and the circumstances surrounding your finance requirements

This can start from a 1.3% flat rate. There is usually an initial set-up or administration fee and final nominal payment for the transfer of the title of the commercial vehicle (or other assets) to your business.

Working with Fincred CF, Your Partner In Commercial Vehicle Finance

It can be hard to know what commercial vehicle finance solution is best for your business. As experienced brokers in the area of commercial vehicle finance, FinCred CF will guide you through the process and provide all the advice you need. 

Whether you are a sole trader, an SME, or a large multinational, we treat all businesses with care and attention. 

Commercial vehicle finance can be easy. Ready to find out what we can do for you? Contact us now

We work in partnership with our sister company FinCred IS. With their specialist surety bonding and trade credit insurance expertise, they can offer insurance solutions to complement and facilitate your commercial vehicle finance requirements.

UK Wide Industry Statistics

Total value off all sales financed in the UK - £bn

Domestic invoice discounting - £bn

Total number of asset based lending clients

Domestic invoice discounting clients

Please Get In Touch

If you wish to speak to a broker in commercial vehicle (and fleet) financing please fill out the form on the ‘Contact Us’ page by clicking the button below.