Financing a van as a new or start-up business is more challenging than for established operators, but it is far from impossible. A small number of specialist lenders actively finance start-ups, and a broker who knows the market can present your case in a way that maximises approval chances - and minimises the deposit you need to put down.
What Do Lenders Mean by "New Business"?
Different lenders define new business differently. Some treat businesses under 12 months' trading as start-ups; others draw the line at 24 months. For the purposes of this guide, a new business is one with less than 24 months of continuous trading history, with or without filed accounts.
Lenders Who Finance New Businesses
| Lender | APR Range | Min trading period | Deposit required | Key requirements |
|---|---|---|---|---|
| Close Brothers | 4.5–12% | 0–12 months | 20–30% | Bank statements, evidence of contracts |
| Aldermore | 5.5–14% | 6–12 months | 20–25% | Business plan, bank statements |
| Haydock Finance | 6–16% | 0–6 months | 20–30% | Director background, work in hand |
| 1pm Finance | 7–19% | No minimum | 20–30% | Bank statements, self-declaration |
| Reward Funding | 7–20% | No minimum | 20–30% | Self-declaration, supporting evidence |
What Lenders Look for in a New Business
Director / proprietor background
For a brand-new business, lenders will look closely at the experience and credit history of the directors or owners. A director with 10 years in the industry starting a new company is treated very differently from someone with no relevant background. Include a brief career summary with your application if you have relevant experience.
Evidence of contracts or work in hand
Signed contracts, purchase orders or letters of intent from customers are powerful supporting documents. They demonstrate that the van will generate income from day one, which materially reduces the lender's perceived risk.
Deposit
A deposit of 20–30% is the most reliable way to secure van finance as a new business. It reduces the lender's exposure and demonstrates your commitment to the agreement. For very low-value vans (under £10,000), some lenders will consider lower deposits.
Worked Example - New Sole Trader, £18,000 Van
Business: plumbing and heating sole trader, 4 months trading. Asset: 3-year-old Ford Transit Custom, £18,000. Deposit: £4,000 (22%). Finance amount: £14,000. Lender: Haydock Finance. APR: 11%. Term: 3 years. Monthly payment: approximately £458/mo. Total repaid: £20,488.
Supporting documents provided: 3 months bank statements, signed maintenance contract with local estate agent, driver's licence and utility bill. Decision: approved within 48 hours.
Pre-Incorporation Finance - Can You Finance Before the Company Exists?
Financing a van before you have incorporated your company is possible on a sole trader basis. If you are planning to incorporate, you may be able to transfer the finance agreement to the company later, though this requires lender consent. Speak to Doulton Bridging Finance about the best structure for your situation.