What Is Business Van Leasing?
Business van leasing is a flexible financing option that allows sole traders, small businesses, and corporations to lease vans for their commercial needs. Unlike personal van leasing, which is for individual use, business van leasing provides tailored solutions to support various business operations.
The process of business van leasing is similar to personal leasing, but there are some slight differences, mainly in the documentation required, such as your business details.
What Type of Business Lease Agreements Are There?
With leasing, you’ll get a new van which you’ll pay a fixed monthly amount for. The price of your leased vehicle will be determined by several factors including mileage, contract length, and contract type.
Contracts generally last anywhere from 3 to 5 years, or shorter-term agreements are available too if that suits your business more. After an initial payment at the start of the contract, it’s just making sure the agreed lease payments are paid in full every month until the end of your contract.
We at Van Leasing offer 4 types of leasing agreements for your business:
- Business Contract Hire – pay a fixed monthly fee for a van or fleet for a set period, then return the vehicle at the end of the contract.
- Hire Purchase – pay a fixed monthly fee for a van or fleet, and own the vehicle outright once the payments are complete.
- Business Lease – Pay a fixed monthly fee for a van or fleet, and make a final balloon payment at the end of the term, at which point you can sell the vehicle or pay a small annual fee to keep it on a lease.
How Does Business Van Leasing Work?
Leasing companies want to know that you can pay regularly and on time. This is subject to an application process that involves a credit check, both on the company and often (but not always) on you as a company director. The credit criteria applied will depend on the finance company approached for your new van. If you are unsure of your credit score, you can use free tools made available by ClearScore, Experian, and others to check. Some questions about your financial history will be asked.
What Type of Van Can I Lease For My Business?
• Small Vans. Ideal for urban areas and businesses with smaller cargo needs. These vans are perfect for delivery services, tradespeople who need to transport tools and equipment, or small businesses that require a compact vehicle for navigating tight city streets.
• Medium Vans. Offering a bit more space without being too bulky, medium vans are great for businesses that need to transport larger quantities of goods or equipment while still maintaining maneuverability. Often used by logistics companies, service providers, and small businesses that require a balance of capacity and efficiency.
• Large Vans. If your business involves transporting substantial loads or bulky items, large vans provide the extra space you need. These vans are suited for larger deliveries, moving companies, and businesses that need significant cargo capacity.
• Pickup Trucks. Perfect for businesses that need a vehicle capable of handling rugged terrains and transporting equipment or materials with ease. Pickups are often used by construction companies, landscapers, and outdoor enthusiasts. Their open cargo area is ideal for hauling bulky items and tools.
• Tippers. Tippers are designed for businesses involved in construction, landscaping, or any field where dumping materials is frequent. These vans feature a hydraulic system that allows the cargo area to be tilted, making it easy to unload materials like gravel, sand, or debris.
• Drop Side. With sides that fold down for easy loading and unloading, drop sides are ideal for businesses that need to transport items that are too large or awkward for standard vans. They are commonly used in the construction industry, by delivery services, and for transporting bulky items.
• Crew Vans. Designed to accommodate both passengers and cargo, crew vans are perfect for businesses that need to transport a team along with their equipment. These vans make them suitable for tradespeople, service teams, and group transportation needs.
