What counts as a "new business" for lenders?
Most mainstream van finance lenders require a minimum of 2 years' trading history, with 2 years of filed accounts. If your business is under 2 years old, you're in "new business" territory for most lenders. Some lenders draw the line at 12 months; a few will consider businesses as young as 6 months.
Which lenders consider new businesses?
Specialist SME lenders are the most likely to help. Aldermore Bank considers businesses from 6 months' trading. Propel Finance and Time Finance consider businesses from 12 months. Black Horse, Lombard, Santander and Close Brothers typically require 2+ years.
The rate will reflect the shorter trading history - expect 12.9%–19.9% APR as a realistic range for a new business in its first 1–2 years. As your business matures and you build a credit history, rates will improve significantly.
How to maximise your chances of approval
- Put down a larger deposit - 20–30% significantly improves your profile
- Maintain a clean personal credit history - many lenders use the director's personal credit score for new businesses
- Provide as much trading evidence as you can - bank statements, invoices, contracts with customers
- Consider a personal guarantee - it's standard for new businesses
- Buy a newer, lower-mileage van - a better asset reduces the lender's risk
What documentation to prepare
- Last 6–12 months of business bank statements
- Certificate of incorporation (limited companies)
- Director's ID and proof of address
- Any accounts available (even if unaudited)
- Business plan or brief description of trading activity
- UTR number (sole traders)
Realistic rate expectations
For a new business (under 2 years) with clean personal credit, typical rates are 12.9%–19.9% APR depending on deposit, asset age, and lender. This is significantly higher than for an established business. The good news is that after 2 years of trading and clean repayment history, you'll be in a much stronger position and rates will improve substantially.