As a sole trader, you can absolutely finance a van - but the process differs slightly from a limited company application. Not all lenders consider sole traders, and those that do require specific documentation to assess affordability without formal company accounts.
Can a Sole Trader Get Van Finance?
Yes. Several of the UK's major asset finance lenders actively target sole traders and self-employed individuals. The key is using a broker who knows which lenders operate in this space, rather than approaching a bank directly where sole traders are frequently declined on automated criteria.
Lenders Who Accept Sole Traders
| Lender | APR Range | Min trading period | Documentation required |
|---|---|---|---|
| Close Brothers | 4.5–12% | 12 months | 6 months bank statements, SA302 or proof of income |
| Aldermore | 5.5–14% | 12 months | 6–12 months bank statements, last 2 years self-assessment |
| Haydock Finance | 6–16% | 6 months | Bank statements, evidence of contracts or work in hand |
| 1pm Finance | 7–19% | No minimum | Bank statements, proof of self-employment |
| Reward Funding | 7–20% | No minimum | Bank statements, self-declaration of income |
What Documents Do You Need?
Bank statements
The single most important document for sole trader applications. Most lenders want 3–6 months of business bank statements showing regular income and positive day-to-day conduct (no returned direct debits or persistent overdraft). If you use a personal account for business, provide those statements but be prepared to explain the mixing of personal and business transactions.
Proof of income
An SA302 (HMRC self-assessment tax calculation) is the gold standard for proving sole trader income. If your most recent SA302 is not yet available, bank statements showing consistent income deposits are often sufficient for specialist lenders.
Asset details
The lender will want an invoice, auction confirmation or dealer quotation for the van. If you are buying privately, a written agreement confirming the sale price and seller details is needed.
Proof of ID and address
Standard AML requirements - driving licence or passport, plus a utility bill or bank statement dated within 3 months.
Tips to Improve Your Sole Trader Application
Keep your bank account in credit and avoid returned payments in the 3 months before applying. Separate your business and personal finances if you have not already. Ensure your most recent self-assessment is filed and an SA302 is available. A deposit of 10–20% significantly improves approval chances for new sole traders.