Business car finance
Fund the cars you need for your business with our cash-flow friendly finance options.
How can car finance help your business?
Business car finance works in a similar way to financing a car for personal use but you can fund multiple cars at the same time. It means you can spread the cost over different time periods to suit your business instead of paying the full cost upfront.
Why finance business cars?
What type of car finance is right for you?
There are different ways to fund your car depending on whether you’re buying new or used, and if you prefer to hire it or want to own it at the end of the agreement.
Business Hire Purchase
Our most popular car finance option helps you spread the cost.
Option to own at end
New or used
Fund up to 90% of price
12 to 60 months
An affordable way to lease cars without owning them.
Extend or sell at end
New or used
Fund up to 100% of price
12 to 60 months primary lease
Vehicle Contract Hire
A cost-effective way to lease brand new cars without owning them.
Return vehicle at end
24 to 60 months
Let’s talk about Hire Purchase
As you look around your business you will see the things that are essential to its day-to-day success. Depending on what you do this might include machinery, vehicles, or IT equipment.
All these “assets “cost money and don’t last forever, so keeping things up to date and investing in new ones may often be on your mind.
In addition, if you are planning to grow, develop new products or services, or become more efficient and sustainable, this might also mean you need to invest more.
This is where asset finance can come in, a simple way to help you finance the assets you need to help your business thrive.
Asset finance can allow you to borrow the money you need to either buy or lease the assets you want and looks to the value of the asset as the security for the amount you need to borrow.
Hire Purchase, or HP, is one form of asset finance that can help you fund a new asset and ends with you owning it outright.
In simple terms, HP works like this: you identify the asset you want, pay us a 10% deposit, we then buy the asset on your behalf and “hire” it to you over an agreed term, usually between 12 and 60 months. We then charge you monthly “rentals” that cover the remaining cost and the interest on the amount borrowed.
When you have settled the total outstanding, you pay a small “option to purchase” fee and we transfer the asset to your ownership.
So, you Hire it first and Purchase it at the end, hence Hire Purchase. If you don’t want to own the asset at the end of the term, there are other options, including Finance Lease.
Lloyds Bank have been providing asset finance solutions for many years. We have a team of specialists on hand to ensure you get the right support and the help you need to choose the solution that is right for your business.
Other car finance options
Sale & Hire Purchase Back can help spread the cost of a recent car purchase and release funds back into your business.
If you’ve bought a car for your business using either cash or your overdraft in the last 6 months (if you live in England and Wales, or 3 months if you’re in Scotland), Sale & Hire Purchase Back could help you release cash flow by paying for it monthly instead.
You won’t need to pay a deposit and can choose to make repayments over 12 to 60 months. At the end of your agreed term, you’ll own the car again.
Discounted finance for electric and selected hybrid cars with Lloyds Bank’s Clean Growth Financing Initiative (CGFI)
Funding can support electric, selected hybrid and hydrogen cars. We also provide financing for the infrastructure you need to support low carbon transportation such as charging points.
The discount is available for 5 years on assets valued at over £25,000 and linked to our qualifying green purposes.
Manage risk and protect cash flow when buying cars from overseas.
Spread the costs of car purchases over £100,000 from overseas. The funds are only released when your supplier meets their obligations to help protect your investment.
Frequently asked questions
The cars you use to carry out your day-to-day operations are classed as business assets. Our business car finance is a type of asset finance that allows you to spread the cost of the vehicle over time. This helps you to manage cash flow as you won’t have to pay the full cost upfront and makes budgeting easier as you’ll pay monthly costs instead.
You can use Hire Purchase or Finance Lease for most types of new or used cars for your business, subject to qualifying criteria.
If you want to lease a new car through Contract Hire, you will need to check what your contract hire provider offers and their terms and conditions.
Car finance is used solely for the purpose of buying or leasing a specific agreed vehicle. It uses the value of the vehicle as the security for the finance you need to borrow in order to buy or lease it. At the end of your agreement, you will have different options including owning your vehicle, returning it, selling it or extending your lease.
Eligibility criteria and terms and conditions apply.
Important Legal Information
Lloyds Bank plc, Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England & Wales no. 2065. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278.
Lloyds UDT Leasing Limited, Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England & Wales no. 665240.
Lloyds Bank Asset Finance, part of Lloyds Banking Group, is a member of the Finance & Leasing Association (FLA) and complies with the FLA Business Code of Practice. Lloyds Banking Group is a member of the Lending Standards Board (LSB) and complies with the LSB Standards of Lending Practice for Business Customers (Asset Finance). Further information is available from the FLA at www.fla.org.uk and from the LSB at www.lendingstandardsboard.org.uk.
We are covered by the Financial Ombudsman Service (FOS). Please note that due to FOS eligibility criteria not all business customers will be covered.
The provision of our credit or leasing services by us is subject to you meeting our credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.