Looking to expand your small fleet?  Here are some finance options

If you are considering expanding your small business fleet, then that is likely to be good news.

It suggests that your business is successful - and you can see new horizon opportunities that are achievable but only if you have an additional vehicle or vehicles.

In principle, expanding your fleet is no different from purchasing or otherwise funding access to your very first vehicle.  However, there are a few considerations to keep in mind and several different options that might be open to you under fleet expansion finance.

The building blocks

The good news is that specialist fleet providers are usually keen to try and help.  That’s because the potential funding is usually being discussed in the context of an existing successful company.

Even so, you will need to make sure that some of the basics are in place, including:

  • evidence, in the form of your company accounts, that your business is thriving and will be able to support the payments associated with expanding your fleet;
  • you can make available some contribution towards the cost of the purchase or purchases you are considering. The exact percentages may vary from case to case.

Assuming that’s the case, you will be able to move on to discussing the different types of financing options.


Fleet expansion finance might involve:

  • traditional hire purchase.  This is a very straightforward and familiar method for securing new vehicles for a fleet.

It essentially involves the funding provider purchasing a vehicle in their name, and they remain the owner.  You will be able to use the vehicle as if it were your own property, under the auspices of “registered keeper”.  Each month you will make an agreed payment, and at the end of the repayment schedule, the vehicle will transition to becoming the legal property of your company;

  • lease purchasing options.  There are several possibilities here that revolve around the vehicle being made available to you in return for a regular monthly payment.  At the end of that period, you may have options to purchase the vehicle in return for one final larger “balloon” payment or to return it to the facility provider;
  • direct commercial lending.  This might typically involve the lender providing you with the funds in the form of a loan which can then be used to purchase the vehicle of your choice.  The loan is then repayable over an agreed period.

This is just a very brief selection of the options that might be open to a company looking for fleet expansion finance.  There may be others.

Choosing your route

Selecting the form of fleet expansion finance that is suitable for you might not be straightforward.

There are many options and a lot to think about.  For many businesses, the advice of a specialist provider of fleet finance and an accountant will be essential. 

For example, the method you select for obtaining your fleet expansion finance might have a significant effect on how it is accounted for in your company’s books.  That, in turn, might affect your company’s valuation, asset to liability ratios and external perceptions of your gearing.

None of that is necessarily as complicated as it sounds though!  It is just important to make sure you understand the full implications behind the fleet car financing option you are considering.

In conclusion, take advice from professionals who know what they’re talking about and then you can start to expand your fleet and grow your business with confidence!