Can I refinance my van?
Yes. Van refinance works for a van your business owns, or one it still owes money on.
Read the film's words
Van refinance. In this video we are going to discuss van refinance. Yes. Van refinance works for a van your business owns. It also works for a van it still owes money on. Refinance gets cash out of your van. A joiner rang us. His customers pay late. So he was using savings and credit cards to buy materials. He did not know he could refinance his van. A lender lends against what the van is worth today. You keep using it as normal. Tell us about your van, and show your business owns it. Send three months of business bank statements and your latest accounts. We go to our panel of lenders. The lender pays off what you still owe. The cash goes into your business bank account. What it is worth comes down to age, miles and condition. It helps if the van covers what you owe, with some left. Refinance can often cost a little more. New van finance costs less. The van backs the loan. If you stop paying, the lender can take it back. Our page has a free checklist of what lenders ask for. There is no fee to apply. Apply online with Donnie, our in house AI agent, 24/7. Or call our team on 01463 652 653. Thanks for watching!
A joiner rang us. His customers pay late, so he was using savings and credit cards to buy materials. He did not know he could refinance his van.
Couriers, cleaners, garages and any business with a van can do the same.
So can I refinance my van?
Yes.
A limited company, a sole trader or a partnership can refinance a business van to release cash. A lender lends against what the van is worth today, and you keep using it as normal. This is called asset refinance. Some call it sale and hire purchase back.
How does business van refinance work?
- Tell us about your van, and show it is yours.
- Send 3 months of business bank statements and your latest accounts.
- We go to our panel of lenders.
- The lender pays off what you still owe.
- The cash released goes into your business bank account.
How much can my van raise?
Most lenders lend up to 80% of what your van is worth. Some lenders on our panel go up to 100%. What it is worth comes down to its age, its miles and its condition.
One van or a whole fleet works the same way. For a big fleet, we can spread the vans across several lenders.
An example, not an offer:
A lender at 80% lends up to four fifths of what the van is worth. What you still owe is paid off first. The rest is the most that can go into your business.
We do not show a monthly payment here. With over 120 lenders, we ask them first, then give you a real figure.
A manufacturing business in Moray raised £150,000 this way. A Highland firm refinanced an auction minibus.
What is a settlement figure?
A settlement figure is what it costs to pay off your van finance today. If your van still has finance on it, ask your lender for one first.
On most agreements with a set rate, all the interest is added at the start. To settle early, you pay the balance today, less a small discount. The discount can be bigger if your new finance is with the same lender.
Can I refinance a balloon payment?
Yes. A balloon that is nearly due can be refinanced, like any other van. We have done it for people keeping their van longer. Start about 3 months before it is due.
A balloon is a bigger last payment. It makes each payment smaller, but costs more in the end. Watch for two things.
- The lender will often set a mileage cap. Go over it and you could pay extra charges.
- What you owe comes down more slowly, so you pay more interest in total.
Can I move my van into my limited company?
Yes. Say you are going from a sole trader to a limited company, and the van is on finance. Some lenders will move the agreement across. This is called a novation. Some lenders will not, so ask yours first.
If not, the company can buy the van from your old business, with new finance in its name. The old finance is paid off.
Speak to your accountant first. They can advise if it should be done. A broker cannot.
Is refinancing my van worth it?
It can be, if you need cash and your van is worth more than you owe.
- Refinance often costs a little more than new van finance. A longer agreement can mean more interest.
- The van backs the loan. If the payments stop, the lender can take it back.
- If you owe more than the van is worth, there may be nothing to release.
- A company owner may need to sign a personal guarantee. That is a promise to pay if the company cannot.
What is the smallest amount you can refinance?
For a limited company, some lenders start at £15,000. Most start at £25,000. Sole traders and partnerships need over £25,000. Under that, please speak to us. With over 120 lenders, we set no top limit of our own.
Who is Mackenzie Commercial Finance?
Mackenzie Commercial Finance is a team of asset finance brokers. We do not lend money. We find the right lender for you. There is no fee to apply. The lender pays us, and we show you what we are paid before you sign.
Our team has worked in banking and finance since 2008. We are based in Scotland, and we help businesses across Scotland and the UK.
Frequently asked questions
What types of van can be refinanced?
Most can: panel vans, tippers, pickups, and commercial 4x4s like the Land Rover Defender Commercial. Many lenders take a van up to 12 to 15 years old by the end of the agreement. Without a balloon, most have no mileage limit. Some cap it at about 100,000 miles.
How quickly can the money come through?
We reply within a day. Lenders vary: the same day to a few weeks.
Can I check if a van has finance on it?
Yes. An HPI check, or another online check, shows it. When a lender pays out, it records its claim there.
Does refinancing a van affect my credit rating?
Applying to us is not a credit search. We read what you send and say what we think the outcome will be. To go ahead, you sign a consent form. Then we run a light credit check on your company with Experian. It is often known as a soft search. Each lender then does its own check, soft or hard. Tell us about any missed payments up front.
Is hire purchase or a finance lease better for tax?
They are taxed in different ways. Your accountant can tell you which suits your business. GOV.UK explains capital allowances on vans.
This article shares what we have seen as finance brokers. It is general information, not financial advice. Every business is different, so base any decision on your own situation.
