Whether you’re replacing an ageing vehicle, adding another lorry to your fleet or buying your first truck, the cost can be a significant expense for any business.
The good news is that yes, you can get finance for a lorry or truck for your business, and there are several funding options available depending on the vehicle you’re buying, its age and value, your business circumstances and how you want to structure the repayments.
At H2H Business Finance, we help businesses explore suitable funding options for commercial vehicles, from individual vans and trucks through to larger fleets and specialist vehicles.
What types of lorries and trucks can be financed?
Commercial vehicle finance can potentially be used for a wide variety of vehicles, including:
- HGVs
- Lorries
- Tractor units
- Trailers
- Tippers
- Tankers
- Refrigerated vehicles
- Box trucks
- Flatbed trucks
- Recovery vehicles
- Specialist commercial vehicles
Finance isn’t necessarily limited to brand-new vehicles either. Depending on the lender and your circumstances, used and higher-mileage commercial vehicles may also be eligible for finance.
This can give businesses considerably more choice when sourcing the right vehicle for the job.
Can I finance a second-hand lorry?
Yes. Used lorry and truck finance is available, subject to factors such as the vehicle’s age, mileage, condition and value, as well as the financial position of your business.
For many operators, buying used can make commercial sense. A good-quality second-hand truck may provide the capability the business needs without the cost associated with purchasing a brand-new vehicle.
Older vehicles don’t automatically mean finance isn’t available either. Different lenders have different criteria, which is why speaking to a commercial finance broker can be particularly useful if you’re looking at an older or higher-mileage vehicle.
Can I finance a lorry bought from a private seller?
While buying through a dealership is common, businesses sometimes find the vehicle they need through a private seller. Depending on the circumstances and the lender’s criteria, finance may still be possible.
The lender will usually need to carry out the appropriate checks on the vehicle and transaction before agreeing to provide funding.
If you’ve already found a truck you want to purchase, speak to H2H Business Finance and we can look at the options available.
What type of finance can I use to buy a truck?
One of the most common ways to fund commercial vehicles is asset finance.
Rather than paying the full purchase price upfront, asset finance can allow you to spread the cost over an agreed period through manageable repayments.
Depending on your circumstances, options may include hire purchase, finance lease or other forms of commercial vehicle funding.
The most appropriate route will depend on factors including your cash flow, the vehicle you’re buying, how long you intend to keep it and your wider business circumstances.
Why finance a lorry rather than buy it outright?
Even when a business has enough cash available to purchase a vehicle outright, using finance can sometimes be worth considering.
A lorry or HGV can represent a substantial upfront cost. Financing the purchase may allow you to preserve working capital for other day-to-day requirements such as fuel, wages, maintenance, insurance and unexpected costs.
It can also make it easier to plan expenditure by spreading the cost across regular repayments rather than making one large payment.
The right approach will depend on your individual business, so it’s important to consider the total cost of finance alongside the benefits of retaining cash within the business.
Can a new business get truck finance?
Being a relatively new business doesn’t necessarily prevent you from obtaining commercial vehicle finance.
However, lenders will usually assess several factors before making a decision. These can include how long you’ve been trading, your credit history, affordability, the vehicle being purchased and the amount you’d like to borrow.
If your circumstances fall outside the criteria of one lender, that doesn’t necessarily mean finance isn’t available elsewhere.
This is where working with a broker such as H2H can help. Rather than relying on a single lender, we can look at your circumstances and help identify appropriate funding options from our panel of lenders.
How much can I borrow for a lorry?
The amount available will depend on your business, the vehicle and the lender.
Factors lenders may consider include:
- The purchase price and value of the vehicle
- Your business’s trading history
- Turnover and affordability
- Credit history
- The age and mileage of the vehicle
- The deposit available
- The proposed finance term
If you’ve already found a particular lorry or truck, having details such as the purchase price, registration, mileage and seller information available can help when discussing your options.
What if my business needs more than one vehicle?
Finance isn’t restricted to purchasing a single truck.
If your business is growing or you’re looking to update several vehicles, funding may be available for multiple commercial vehicles or a wider fleet.
This could be particularly useful for businesses operating within haulage, logistics, construction, waste management, agriculture and other industries where reliable vehicles are essential to day-to-day operations.
How quickly can commercial vehicle finance be arranged?
Timescales vary depending on the application, lender and vehicle involved.
Providing the necessary information early can help make the process smoother. If you’ve already found the vehicle you want, speak to H2H as soon as possible so we can understand what you’re purchasing, how much funding you require and your preferred timescale.
Looking for lorry or truck finance?
Whether you’re purchasing your first commercial vehicle, replacing an existing truck or expanding your fleet, H2H Business Finance can help you explore your funding options.
We understand that every business and vehicle purchase is different. Our friendly team will take the time to understand what you’re looking to finance and help identify an appropriate solution from our panel of lenders.
From newer HGVs to used and specialist commercial vehicles, we’ll help you understand what’s possible and guide you through the process.
Found a lorry or truck you want to buy? Get in touch with H2H Business Finance today and let’s see what funding options are available.