Business registrations are increasing all the time, with more people embarking on the exciting journey of going self-employed. For most of these businesses a vehicle is an essential asset to be successful, leaving many with the question - can I lease a van as a new business?
Here’s the good news - yes you can, and at vanleasing.com we specialise in helping new and small businesses get on the road with a brand new van.
A brand new van
Minimal Start-up costs
Low monthly payments
100% tax deductable*
Easy to setup
No VAT registration required*
No trading history required
No financial accounts required
No security against your home
No lengthy decision process
We have created some insightful guides to help you make the best possible choice when it comes to leasing a van for your business.
Yes, however with limited financial history, start-ups and new businesses often find it’s not quite as straightforward as it is for a well-established business with years of trading history under their belt.
This is because leasing companies want to know you can pay regularly and on time, but if you’ve only just started out, there’s no previous trading history to rely on. This is why it’s common for businesses to be turned down when applying for a van lease, often without explanation.
Yes, we know that many leasing companies are unable or unwilling to deal with newly incorporated limited companies or self-employed sole traders but that’s not the case at vanleasing.com. We take a different approach by helping companies get off the ground with a cash flow friendly and affordable leasing solution tailored to their budget. Here, we offer a unique experience by assigning a dedicated leasing advisor who will take the time to get to know your circumstances, reviewing each case individually.
So - if you’ve been up and running for a while, why are you still counted as a ‘new business’? What you think of as a new business vs what leasing companies see are often two different things. It’s generally to do with when your accounts are lodged on the government run Companies House database. If, for example, you are a Limited Company it will take one full calendar year to produce a set of accounts. You then get 9 months to lodge the accounts on Companies House, meaning it can be 21 months in total before your accounts are visible. Many providers look for two years of lodged accounts before they will count a business as ‘established’, so it’s not until you have been trading for 2-3 years before you are able to shake off the ‘new business’ tag.
At vanleasing.com we operate differently and look at things including; previous sole trader history, company bank statements and up-to-date management accounts as the basis for making a decision.
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When you lease a van, there are criteria that you have to meet. This will involve looking at the bank account and director’s information, so can be a concern for businesses who have very little or nothing to show in terms of revenue.
All businesses, new or existing will be asked to share:
On top of this, it’s almost certain that a start-up business, or certainly one who has been trading for less than two years, will be asked to provide further information, so being prepared with the following will help:
Documents aside, we will be interested to hear about you, your work background and how you plan to use your new van. This means we will ask things like the estimated mileage you think you’ll be traveling each year, the types of tools and equipment you’ll be carrying, and also what experience you have from previous roles. This is simply to build a picture of you, your business and how the van might be utilised, and it helps establish the associated risks with the lease. Remember, leasing a van is a long-term commitment and a contract is likely to be anywhere from 3 to 5 years. It’s important that you can commit to the repayment plan and are confident that you plan to be running your business for the full duration of the lease.
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