Van Leasing for Small Businesses

For a small business, a van is often the biggest single purchase after premises. Leasing spreads that cost and removes much of the risk. Here is why many small firms choose van leasing over buying outright.

Better cash flow

Buying a new van can mean tens of thousands of pounds leaving the business on day one, or taking on a loan. Leasing replaces that with an initial rental and a fixed monthly payment. That leaves more cash for stock, tools, wages and growth, which matters most when you are building a business.

VAT you can reclaim

If your business is VAT registered, you can normally reclaim the VAT on the monthly rentals. For a van used only for business, that is generally the full amount. If the van is also used privately, the position changes, so check with your accountant. It is worth knowing that the rentals are quoted ex VAT on our deals page, so the price you see is usually the cost to a VAT-registered business.

Fixed costs make budgeting easier

Your monthly payment does not change during the term. You know exactly what the van costs you each month, which makes quoting jobs and forecasting cash flow simpler. Fuel, insurance and servicing are still yours to budget for, but the biggest cost is fixed.

Warranty and reliability

A leased van is new, and it normally comes with the manufacturer's warranty for much of the term. That means fewer surprise repair bills and less downtime, which matters when the van is how you earn your living.

No disposal headache

When you buy a van, you have to sell it. That means advertising, haggling and taking whatever the used market offers. With a lease, you hand it back at the end. The funder takes the resale risk, not you.

Things to be aware of

• You must stay within your agreed annual mileage, or pay for excess miles.
• You need to return the van in fair condition.
• You will not own the van at the end of the agreement.
• Your business will be credit checked, and approval is not guaranteed.

Getting started

If you are new to leasing, read how van leasing works for the full process. Otherwise, see our van deals and compare monthly prices.

Swiss Vans Ltd is authorised and regulated by the Financial Conduct Authority as a credit broker, not a lender. FRN 668283.