Guides
Van finance options
We typically arrange Finance Lease (FL) and Hire Purchase (HP) for business users. In short: HP = ownership at the end; FL = no transfer of ownership with VAT on each rental. If you need a deeper dive, see our Van leasing explained page.
Finance Lease (FL)
- Use the van for most of its life; legal title stays with the funder (lessor).
- VAT is charged on each rental — helpful for cash flow.*
- End of term: continue at a nominal rent or arrange a sale on the lessor’s behalf (per agreement).
- Optional balloon can reduce rentals — set sensibly with expected mileage.
Hire Purchase (HP)
- Designed for eventual ownership after the final payment (and any option fee).
- VAT usually payable up-front on the purchase price; deposit typically required.*
- Asset and finance liability recognised on your balance sheet.**
- Good when you’ll keep the van long-term or need extensive modifications.
FL vs HP — key differences
| Topic | Finance Lease (FL) | Hire Purchase (HP) |
|---|---|---|
| Ownership | No transfer — lessor keeps legal title. | Transfers to you after the final payment (and any option fee). |
| VAT & cash flow* | VAT on each rental — spreads VAT over the term. | VAT usually due up-front on the price; deposit typically required. |
| Balance sheet** | Lessee capitalises asset + liability; records depreciation and interest. | Asset + liability recorded; you charge depreciation and interest. |
| End of term | Continue at nominal rent or sell on lessor’s behalf and share proceeds per agreement. | You own the van outright. |
| Mileage & condition | No mileage penalty in the contract itself, but mileage/condition affect resale proceeds. | You bear resale value risk; higher mileage may reduce value. |
| Payments pattern | Initial rental multiple (e.g. 9x) then fixed rentals; optional final balloon can reduce rentals. | Deposit + fixed instalments over the term; no balloon required (some lenders may offer). |
*VAT treatment varies by circumstance (e.g. your VAT status and how the van is used). Always confirm with your accountant.
**Accounting depends on your reporting framework (e.g. IFRS 16 or UK GAAP/FRS 102) and materiality. This is a general overview, not advice.
Limited companies
- Trading history and filed accounts (or projections for newcos).
- Director/PSC details for credit checks and ID&V.
- Bank details for direct debit and affordability assessment.
Sole traders & partnerships
- Bank statements and income evidence may be requested.
- Proof of identity and address for all applicants/partners.
- Business use confirmation for the vehicle.
Individuals (personal use)
- Personal credit checks and affordability review.
- Proof of ID and address; employment/income details.
- Personal options available on request — ask our team.
What affects your monthly price?
- Initial payment multiple (e.g. 1x, 3x, 6x, 9x, 12x) — higher initial usually lowers monthly.
- Term length (30–60 months typical) and annual mileage (8k–20k+).
- Maintenance package (optional) covering servicing, tyres and breakdown.
- In‑stock vs factory order, lead time, and vehicle specification/options.
- Credit profile and the funder’s current rate card/fees.
Figures shown on site are examples and may change without notice. They do not constitute an offer.
Finance FAQs
Will there be a credit check?
Can I add maintenance?
Can I signwrite or fit racking?
Can I settle early?
Is insurance included?
Talk to our team
We’ll help you choose the right product, structure the deal, and secure live funder approvals.
E‑Van Leasing is a credit broker, not a lender. Finance subject to status. This page is for general guidance and does not constitute tax, accounting or financial advice. Please seek professional advice specific to your business.