Business van finance can be a great way to get the transportation you need for your business without paying the full purchase price upfront. With business van finance, you can make low monthly payments tailored to fit your budget. This type of financing can also help you save money on interest and depreciation.
If you are considering financing your business van, contact a reputable lender to learn more about your options and to get started on the process.
Benefits of Business Van Finance
A number of benefits come with this type of financing, which can make it an attractive option for many business owners. Here are some of the top reasons why you should consider business van finance when shopping for a new van:
1. Get the van you need without a significant upfront cost
When you finance a van, you can spread the cost of the vehicle over a number of years, making it more affordable for your business. This can be especially helpful if you are looking to purchase a higher-priced van or one that is not currently in stock at your local dealership.
2. Build equity in your business
As you make payments on your business van loan, you will be building equity in your business. This can be used as collateral for other loans or lines of credit, which can give you access to additional funding in the future.
3. Improve cash flow
With business van finance, you can make smaller monthly payments, freeing up cash flow for other areas of your business. This can be helpful if you are in the early stages of starting your business and need extra funds to get things off the ground.
4. Get tax benefits
In some cases, business van finance can offer tax benefits. This can help offset the cost of the vehicle and improve your bottom line.
5. Flexible repayment terms
When you finance a van, you can typically choose from various repayment terms. This can allow you to find a payment schedule that works best for your budget and cash flow needs.
Types of Van Finance
The three main types of business van finance are Hire Purchase (HP), Lease Purchase (LP) and Contract Hire (CH).
-Hire Purchase: This is where you agree to purchase the vehicle outright at the end of the hire period. You make regular payments throughout the contract, with a final ‘balloon’ payment to cover the remainder of the cost. It’s important to note that if you opt for HP, you will be responsible for any depreciation in the vehicle’s value.
-Lease Purchase: This is similar to HP in that you make regular payments throughout the contract and pay a final ‘balloon’ payment at the end. The critical difference is that the vehicle’s depreciation is factored into your monthly payments with LP. This means that at the end of the contract, you will effectively own the van outright without worrying about its value decreasing.
-Contract Hire: With CH, you agree to lease the vehicle for a set period. There is no option to purchase the van at the end of the contract, and you will have to return it to the leasing company. As with LP, any depreciation is factored into your monthly payments.
Alternatively, you could use a business loan to finance the purchase of your van.
Summary
If you are considering financing your business van, there are a number of things to keep in mind. Business van finance can offer a number of benefits, including lower monthly payments, flexible repayment terms and the ability to build equity in your business. There are a few different types of business van finance available, so be sure to do your research to find the option that best suits your needs. Contact a reputable lender today to learn more about your options and start the process.
