How To Finance A Business Van For Your Company
Business vans. A vital component of small and large businesses nationwide, but buying a business van outright can have a huge impact on cash flow and consequently your business. So when buying outright isn’t an option it can leave you with older van models that may not be serving you so well.
There’s an affordable alternative however. Business van finance allows you and your company to make use of a van with a finance agreement tailored to your needs, giving you access to a new vehicle in return for regular affordable payments.
Use our guide below on getting to grips with financing vans to support your business.
Preparing for commercial van finance
Before you jump straight into a finance agreement, you must make sure that you’re capable of committing to the terms of the contract. There are a few important things to take into account.
- Budget: One of the most important factors to take into account when looking to finance a van for business purposes is your budget. The cost of a lease agreement is based on the length of the agreement and the total mileage to be driven. Also consider how the van will be maintained and whether you want an inclusive maintenance package or pay as you go.
- Deposit: You should decide upon an amount to be paid as a deposit. As this amount can affect the amount of your monthly payments, it’s important to consider these two elements side-by-side.
- Finance partner: It’s also crucial that you choose a finance provider for your commercial van finance deal that is able to work according to your specific requirements in an open way. Choosing the right finance company with the right experience will offer you the necessary support to access new business vans and vital van accessories that will encourage business growth.
Choosing your commercial van finance method
There are a number of finance options when it comes to funding a van for business purposes, all of which work in slightly different ways. No single method is better than another; it simply depends upon what’s suitable for you and your business.
Commercial van contract hire
Commercial van contract hire allows you to hire a business van for a predetermined amount of time and mileage for the cost of agreed fixed monthly payments. When you choose a business van under a contract hire agreement, you don’t own the vehicle but get the use of it for the length of your rental agreement. Commercial van contract hire offers you guaranteed motoring at a fixed monthly cost, making it easy to update and replace vehicles at the end of contract – simply return and get a new van.
Contract and hire purchase
If you’re interested in contract hire but you wish to purchase your business van at the end of the contract, opt for a contract and hire purchase agreement. Contract and hire purchase van finance works in an almost identical way to commercial van contract hire, the main difference being that contract and hire purchase gives you the option to buy the business van at the end of the finance period.
Business van leasing
Business van finance is an effective way of sourcing and funding your essential business vehicles, particularly when it comes to managing cash flow. With an up-to-date van and a manageable payment plan, you can access the resources you need to grow your business – without spending large sums upfront