Is It Hard to Get Van Finance?

The search for the best van finance deal can be a daunting task for UK businesses. The market is flooded with options, and it’s not always clear how difficult it is to secure the best finance package for your needs. Fortunately, First Oak Capital is here to guide you through the process and help you find the perfect van finance solution. In this blog, we’ll explore the factors that influence how easy or difficult it can be to get van finance, and why First Oak Capital is your best choice for securing the most competitive business van finance.

How hard is it to get van finance for your business, and making it easier

Your Business’s Financial Health Matters

The first factor to consider when trying to secure van finance is your business’s financial health. Lenders want to see that your company is making a profit and has the ability to afford the monthly repayments. If your business has a healthy cash flow and a strong credit history, you are more likely to find van finance options that are not only affordable but also flexible to meet your needs.

How old is your business and what industry are you in

Lenders also consider the age of your business and the industry you operate in when assessing your van finance application. A well-established business with a proven track record may find it easier to secure van finance compared to a start-up or a company operating in a volatile industry. However, even new businesses or those in challenging sectors can secure van finance with the right support and guidance from First Oak Capital.

Understanding Different Van Finance Options

Before diving into the world of business van finance, it’s essential to understand the various options available. The three primary types of van finance are:

• Hire Purchase (HP): You make monthly payments, and at the end of the agreement, you own the van outright.
• Lease Purchase (LP): Similar to HP, but with the option to make a final balloon payment to own the vehicle or return it.
• Contract Hire: You lease the van for a fixed period, making monthly payments, and return it at the end of the agreement.

Knowing which option is right for your business is crucial, as it can affect the overall cost and terms of your van finance deal.

The Importance of a Solid Credit Score

A strong credit score is vital when seeking business van finance. Lenders will look at your credit history to determine the risk involved in lending to your business. A high credit score indicates a lower risk, which means you’re more likely to secure a competitive van finance deal. If your business has a poor credit score, don’t worry – First Oak Capital can still help you find suitable finance options.

The Impact of Interest Rates and Loan Terms

Interest rates and loan terms play a significant role in the overall cost of your van finance deal. A lower interest rate translates to lower monthly payments and reduced overall cost, while favourable loan terms can offer flexibility and better suit your business’s needs. First Oak Capital’s finance brokers can help you find the best combination of interest rates and loan terms, ensuring you get a van finance deal tailored to your specific requirements.