Van Finance for Self-Employed Van Drivers and Sole Traders
Learn all about the process of obtaining van finance as a self-employed driver, with all your questions answered from Vansdirect.
Table of Contents
1. Can you get van finance if you are self-employed?
2. What do you need to finance a van?
3. How to get approved for a self-employed van lease
4. Can you get van finance with a bad credit check?
5. Financing your new van at Vansdirect
When buying a new van for your business, van finance is an excellent way to make the process more affordable.
Whether you work for a company, or contractor, or operate your own business, financing your van can help you a great deal.
But how does the process differ for self-employed van leasing? In this article, we’ll cover all the essential information you need to know.
Can you get van finance if you are self-employed?
If you are a sole trader, you can apply for self-employed van finance to help cover the costs of a new van for your business. Other options available include buying the van outright, though it depends on whether this is right for you.
When choosing your new van, you’ll want to make sure this will meet your business needs. If you need some advice, our van experts will be able to help you with this, so feel free to get in touch.
To apply for a self-employed van lease, you’ll need to:
- Be officially registered as a business with an allocated company number
- Have been trading for at least two years
- Provide lenders with evidence of your net profit
- Declare if the van is to be used for business, personal use, or both
As with any lender or broker, self-employed van finance is not guaranteed. There are a few things you may need to provide in your application which we’ll cover next.
What do you need to finance a van?
As a self-employed individual applying for van finance, you’ll need to provide the following supporting documents:
- Proof of income – usually in the form of bank statements from the last three months
- Your latest tax return
- Proof of earnings SA302 form from HMRC
- Proof of address – showing you have lived in the UK for at least five years
- Employment history – usually from the last three years
Of course, you’ll also need to pass a credit check from the lender, otherwise this could make getting van finance more difficult.
How to get approved for a self-employed van lease
So, you’ve met the conditions to apply for a self-employed van lease. But how can you increase your chances of getting approved?
Organise your finances
When was the last time you looked at your finances? Before applying for a van lease as a sole trader, it’s a good idea to go through your current finances. Pay off any outstanding loans and credit card bills so your credit score is up to scratch.
Know your current credit score
It’s also a good idea to check your current credit score yourself so you know what to expect. If you’re unsure of your score, you can check this easily online. Money Supermarket offers a free online credit monitor which you can use to check and improve your score.
Check for any bad links
If you share a bank account, mortgage, and so on with someone else and they have a bad credit score, this is something important to note. You’ll need to factor in their credit history too which could have an impact on the decision.
Try to cut back on spending
If you can, it might also be worth reducing your spending before applying for van finance. A long list of outstanding payments won’t look so good in the eyes of a lender!
When applying for van finance as a sole trader, obtaining finance may not be as simple if you have a less reliable income. That’s why it’s important to do everything you can to prepare before applying for van leasing and present yourself in the best possible light.
Can you get van finance with bad credit?
Although passing that credit check is important, it’s not the end of the world if you have bad credit. The process may be a little more difficult, though there are still many lenders who will be willing to help.
If you have any defaults or County Court Judgements (CCJs) on your credit file, this may result in a bad credit score. In this case, the lender may require additional evidence that you’ll be able to make all the payments on time.
At Vansdirect, if you apply for van finance and have a bad credit score, not to worry. We’ll still do our best to help you find a suitable option for you. We can also help you improve your credit score with our expert advice.
Financing your new van at Vansdirect
At Vansdirect, we offer a range of van finance options to help make getting a new van for your business affordable. These include Hire Purchase, Contract Hire, and Van Leasing, each of which can be tailored to your specific needs.
Not sure which finance package is right for you? Get in touch with our friendly team, who will be happy to help. Just tell us a little bit about your business and budget, and the rest is easy!
For more information on van leasing see some of our related articles.
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