Having a company car can be a vital part of a business’ day to day success. Whether you’re looking for a few company cars or a fleet of branded vans, you’ll want to make sure that your team has some of the best vehicles available.
This can be a big expense to pay upfront, so you’ll be looking to find a suitable way to finance your fleet. Whether you’re looking for one company car or 20, limited car finance is a great option to consider for its affordability and flexibility.
How Companies Use Their Cars
Companies are likely to use their cars depending on the nature of their business. Those involved in roles such as businesses such as construction, manufacturing or logistics are likely to have a mixed fleet of commercial and heavy goods vehicles.
Who Qualifies for Business Car Leasing?
Business car finance is aimed at the following:
- Sole traders: provided you have a bank account in a sole trader name
- VAT registered companies
- A partnership: 2 or more partners working in a business partnership
- Limited Companies, Private Limited Companies (PLC’s) and Limited Liability Partnerships.
All those listed above are eligible to apply for Business Car Finance
What are the Benefits of Financing a Car for Business?
There are a range of benefits to getting business cars on finance. You might need to get an up to date business vehicle for visits to sites or clients and benefit from paying a monthly fee instead of all of the cost up front. Other benefits of business car finance include:
- You won’t pay tax on the monthly payments if it’s paid for by the company.
- If you opt for a contract hire loan, you’ll be able to keep upgrading your fleet at the end of the relevant contracts.
- There is no commitment to own the vehicle at the end of the contract.
Who Qualifies for Limited Car Finance?
If your business is less than 3 years old, you may be asked to produce additional paperwork more than what an established business may have to do. This is because the lender will want to make sure that you can be reliable in payments and to make sure they supply you with the correct loan.
It may also affect your APR or interest rates which may seem higher than normal to reflect your still a young business. Lenders are looking to look for a company which is reliable and stable and will request bank statements to prove this.
If you’re thinking about getting a business car loan, get in touch with our team of specialists who will be happy to help you find the right deal for you and your company. For more information, check out our blog post on ‘How to Fund Your Business Cars’ or ‘Business Car Finance FAQ’s’