Van Finance for Self-Employed Tradespeople
For electricians, plumbers, builders, joiners, plasterers and other tradespeople, a reliable van is the backbone of the business. Whether you work as a sole trader or run a limited company with several vans, there are finance options to suit every situation. Lenders are very familiar with tradesperson applications and have streamlined processes for them.
Income Evidence for Self-Employed Trades
As a self-employed tradesperson, lenders want to see that your income comfortably covers the finance payments. The typical income evidence required is: SA302 forms from HMRC (last 2–3 years); self-assessment tax returns; accountant's certificate; or 6–12 months of bank statements for newer businesses. Some lenders accept bank statements alone for amounts under £25,000.
Best Van Finance Structures for Tradespeople
Hire Purchase
HP is the most popular choice for sole trader tradespeople. You own the van at the end, claim AIA in year 1 (reducing your income tax bill), and the monthly payment is predictable. A typical HP agreement on a £28,000 Transit Custom over 48 months at 8% APR costs approximately £570/month.
Finance Lease
Finance lease gives lower monthly payments and the full rental is deductible as a business expense. You do not own the van at the end. Suitable for tradespeople who want to upgrade frequently and are comfortable not owning the vehicle.
| Van | Finance Type | Approx. Monthly Payment | Deposit |
|---|---|---|---|
| Ford Transit Custom (new £28k) | HP (48 months) | ~£530–£580 | 10% |
| Mercedes Sprinter (new £38k) | HP (48 months) | ~£720–£800 | 10% |
| VW Transporter (new £35k) | Finance Lease (48 months) | ~£520–£600 | First rental |
Specialist Van Fit-Out and Finance
If you need a specialist fit-out - racking, roof rack, cable drums, plumbing for a mobile workshop - many lenders will include the fit-out cost in the finance agreement, provided it is fitted by a recognised supplier and invoiced separately. This avoids the need to fund the fit-out separately in cash.