Business vehicle finance
Whether you need cars, trucks, Heavy Goods Vehicles (HGVs) or buses to keep your business moving, our vehicle finance options can help.
How can vehicle finance help your business?
Buying commercial vehicles is a significant investment for any business but you don’t need to pay the full cost upfront. Vehicle finance allows you to pay monthly over different time periods to suit your business. So, you get all the benefits of using new or upgraded vehicles straight away, without impacting your business’ cash flow.
Why finance commercial vehicles?
What type of vehicle finance is right for you?
There are different ways to fund your vehicle depending on what it is, whether you’re buying new or used, and if you prefer to hire your vehicle or want to own it at the end of the agreement.
Business Hire Purchase
Our most popular vehicle finance option helps you spread the cost.
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Option to own at end
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New or used
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All types of vehicles
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Fund up to 90% of price
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12 to 60 months
Finance Lease
An affordable way to lease vehicles without owning them.
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Extend or sell at end
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New or used
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All types of vehicles
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Fund up to 100% of price
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12 to 60 months primary lease
Vehicle Contract Hire
A cost-effective way to lease brand new vehicles without owning them.
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Return vehicle at end
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New only
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Vehicles up to 3.5 tonnes
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No deposit
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24 to 60 months
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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 vehicle finance options
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Sale & Hire Purchase Back can help spread the cost of a recent vehicle purchase and release funds back into your business.
If you’ve bought a commercial vehicle 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 vehicle again.
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Discounted finance for electric and selected hybrid vehicles with Lloyds Bank’s Clean Growth Financing Initiative (CGFI)
Funding can support electric, selected hybrid and hydrogen vehicles including cars, vans, buses, coaches, two-wheeled vehicles and HGVs. 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.
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Manage risk and protect cash flow when buying vehicles from overseas.
Spread the costs of vehicle purchases over £100,000 from overseas. The funds are only released when your supplier meets their obligations to help protect your investment.
Commercial vehicles we finance
Our team of experts can tailor a vehicle finance solution to fit your commercial transportation needs including:
- Vans, trucks and other Light Commercial Vehicles
- HGVs
- Commercial trailers
- Forklift trucks
- Buses and coaches
- Tractors
- Taxi cabs
- Hybrid and electric vehicles
Frequently asked questions
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The vehicles that you use to carry out your day-to-day operations are classed as a business asset. Commercial vehicle 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.
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You can use Hire Purchase or Finance Lease for most types of new or used vehicles for your business, subject to qualifying criteria, including:
- Cars
- Buses
- Coaches
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HGVs)
- Commercial vehicle trailers
- Tractors
- Forklift trucks
- Motor caravans
- Motorcycles
- Taxi cabs
If you want to lease a new vehicle through Contract Hire, you will need to check what your contract hire provider offers and their terms and conditions. Our partner, Lex Autolease, has relationships with all the leading vehicle manufacturers and can offer extensive leasing options on new vehicles up to 3.5 tonnes.
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Vehicle 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.