Van on Finance for Self Employed Drivers

04 Nov 2025

Buying a Van on Finance for Self-Employed Drivers in the UK

If you’re self-employed in the UK, your van is more than just a way of getting from A to B, it’s the backbone of your business. Whether you’re a tradesperson, a delivery driver, or you run your own small business, a reliable van can make all the difference. That’s why some self-employed drivers look at van finance options to help spread the cost of the van over a set period of time.

In this guide, we’ll walk you through all you need to know about financing a van and what types of finance agreements might be available to you. 

Why Finance a Van if You’re Self-Employed?

Buying a van outright can be quite pricey, with some newer vans running into the tens of thousands! For many sole traders and small business owners, tying up that amount of cash just isn’t practical. Choosing a new or used van finance deal allows you to:

-Spread the cost with manageable monthly payments.

-Free up cash flow for other business expenses.

-Access newer, more reliable vans that may come with warranties.

-Build your credit history (if payments are made on time).

For self-employed drivers, being able to prove regular income isn’t always easy. However, we work with lenders who consider non-traditional employment applications to offer van finance to self-employed people. Check out our Van Finance page for more details.

Types of Van Finance for Business

There are a few different types of van finance that could potentially be available depending on your personal circumstances, including:

-Hire Purchase (HP): HP involves paying a deposit up front with further fixed monthly payments to pay off the remaining balance plus interest. 

-Personal Contract Purchase (PCP): PCP is a similar arrangement, however, you’ll have the option to buy, exchange, or return your van at the end.

-Van Leasing: Leasing is a different form of finance that involves an initial deposit and monthly payments, which are typically lower than HP or PCP, with no option to own the van at the end.

Sole Trader vs Limited Company Van Finance

Depending on your self-employed status, your process for getting business van finance might differ.

• Sole trader van finance: As a sole trader, you’ll usually need to show proof of income and typically a few months of bank statements when applying for van finance. Your personal credit history will also play a role in whether or not you’re accepted by a lender. You might be able to claim back some of the cost of your van, although this is subject to status.

• LTD company van finance: If you’re buying a van for your limited company, there could be many tax benefits. It can be a complex process, so always consult an accountant before making any decisions that could affect your business. An accountant will be able to guide you through the process and inform you of any potential tax relief you could receive.

What You Need to Apply for Van Finance as a Self-Employed Driver

If you’re applying for van finance as a self-employed person, there are a few things you’ll need to have in order to be approved:

-Proof of income: A payslip or tax return if relevant.

-Proof of address: At least 3 months at the address.

-Proof of identity: Usually a driver’s license or passport.

-Other relevant documents: (Ask your accountant for individual guidance).

Using a Van Finance Calculator 

Before you get a quote, it’s worth getting an idea of how much your repayments could be. A simple way to do this is by using our van finance calculator. You’ll be asked to input a few basic details like your monthly budget and your preferred term length. Then you’ll receive an estimate of monthly repayments. This can help you to plan ahead and avoid overstretching your budget.

Exact van finance offers will depend on your personal circumstances and the specific lender, so remember that the calculator is only there for a rough estimate and should not be taken as an exact figure. 

Self-Employed Van Finance with Bad Credit 

If you have a poor credit history, there may still be options. While it might be more difficult to get approved if you have CCJs, defaults, or other past financial difficulties, it’s not impossible. Our lenders may also consider offering van finance if you have a guarantor to support your application.

We work with a range of trusted lenders who consider applicants for bad credit van finance. Our lenders look at more than just your past credit history and consider applicants on a case-by-case basis. Approval is never guaranteed, and if you are not offered a loan at this time, it may be worth improving your credit rating for future applications. 

Final Thoughts

If you’re considering financing your next van, make sure to consider all the possible implications for your business and yourself. Van financing may not be suitable for everyone, and you should consider discussingit  with a qualified accountant who may be able to offer you tailored advice.

It’s always a good idea to pause and think about any financial decisions before jumping into anything. But if you are ready to look at some van financing options, get an obligation-free quote from our lenders and see what your options are.

 

Get a Quote

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Autodosh is a credit broker, not a lender.

Editorial Disclaimer: This content is for entertainment purposes only. Opinions expressed here are the author’s alone, and not those of any bank, credit card issuer, or any other company. This article has not been reviewed, approved, or otherwise endorsed by any of these organisations. NB: The information on this page does not constitute financial advice, please do your own research to ensure that the product/service is right for your individual circumstances.