Finance for commercial vehicles

Commercial vehicle finance is a financial arrangement that allows businesses to purchase commercial vehicles through affordable monthly payments, rather than paying the full cost upfront. This type of financing is particularly useful for businesses that require vehicles such as vans, trucks, LCVs, HGVs, buses, coaches, taxi cabs, and forklift trucks.

At First Oak Capital, we offer two primary types of commercial vehicle finance:

1. Business Hire Purchase: Under this arrangement, your business makes monthly payments towards the total cost of the vehicle. Once the final payment is made, ownership of the vehicle is transferred to your business.
2. Finance Lease: With a finance lease, your business rents the vehicle for a fixed term, making monthly payments throughout the lease period. At the end of the term, you have the option to purchase the vehicle for a pre-agreed amount or return it and enter into a new lease agreement for a different vehicle.

Financing enables your business to acquire new or used vehicles without waiting for sufficient capital to accumulate. This means you can enjoy the benefits of the latest technology and improved efficiency right away.

Depending on the type of finance arrangement you choose, there may be potential tax benefits. For example, with a finance lease, the monthly payments can be treated as a business expense, which may be tax-deductible. Always consult your accountant or financial advisor for specific tax implications.

Companies of all sizes, from small businesses to large national corporations, are eligible for commercial vehicle finance, as long as they have a legitimate business purpose for the vehicles.

In some cases, a deposit payment may be required. However, this will depend on the specific financing arrangement, the vehicle and the creditworthiness of your business.

Interest rates for commercial vehicle financing can vary depending on factors such as your business’s credit history, the type of vehicle, and the financing arrangement chosen. First Oak Capital will work very hard for you to find the best possible rate for your situation.

Repayment terms can vary depending on the type of finance arrangement and your specific needs. Generally, terms can range from 12 months to 60 months or more.

Yes, many lenders will allow companies to trade in their old vehicles as part of a finance deal for new commercial vehicles.

Absolutely! First Oak Capital can provide financing for a single vehicle or an entire fleet of vehicles, depending on your business requirements.

The approval process for commercial vehicle finance can vary depending on the lender and the complexity of the application. However, many lenders can provide a decision within a few days, with funding disbursed soon after.

At the end of a finance lease term, you typically have the option to purchase the vehicle for a pre-agreed amount, return the vehicle and enter a new lease for a different vehicle, or extend the lease for the existing vehicle.

Yes, some lenders offer re-finance options for existing commercial vehicles, which can help companies lower their interest rate, extend the repayment period, or release capital to use for another business expense.

Yes, you can generally customise financed vehicles to reflect your company’s branding and specific requirements, as long as any modifications comply with applicable regulations and laws.

Early repayment terms vary depending on the financing arrangement. It’s essential to discuss any potential early repayment penalties with First Oak Capital before entering into a financing agreement.

While it may be more challenging for start-ups or businesses with limited operating history, it is still possible. This will require you to have experience in your industry and a decent personal credit score.