Self-Employed HGV Finance - Who It Covers
Self-employed HGV finance covers a range of operator types: sole trader owner-drivers who sub-contract to larger hauliers or agencies; independent operators running one or two vehicles under their own operator's licence; and self-employed drivers setting up for the first time. Each profile is assessed slightly differently, but the core principles are the same.
Sub-Contract vs Independent Operating
If you sub-contract to a larger haulier (carrying their loads under their operator's licence), lenders view your income as relatively stable - you have an existing customer. If you operate independently under your own O-licence, lenders want to see evidence of contracts or a business plan showing how you will generate revenue. Sub-contractors often find it easier to demonstrate income for finance purposes.
Income Evidence for Self-Employed Drivers
The standard income evidence is SA302 forms from HMRC covering the last 2–3 years, showing your self-employment income after expenses. If you are newly self-employed, 6–12 months of bank statements showing regular income credits from your haulier customer(s) can substitute. Some lenders also accept a sub-contract agreement as supporting evidence alongside bank statements.
Typical Terms for Self-Employed HGV Finance
| Profile | Deposit | Rate Range | Term |
|---|---|---|---|
| 2+ years self-employed, clean credit | 10–15% | 7–10% APR | 48–60 months |
| Under 2 years self-employed | 20–25% | 10–14% APR | 36–48 months |
| Adverse credit (CCJ/default) | 25–35% | 14–20% APR | 36–48 months |
Operator's Licence for Self-Employed Drivers
If you intend to operate under your own licence rather than sub-contracting under a larger operator's O-licence, you will need to apply for a standard (national or international) operator's licence from the Traffic Commissioner. The application takes 9–13 weeks. Finance can be arranged before the licence is granted, but the vehicle cannot be operated commercially until it is in place.