A question that comes up often when speaking to customers across Scotland. The short answer is yes, and it could solve cashflow problems you did not even know refinance could fix.
Can I refinance my van? It is a question that comes up often during our discussions around refinance when speaking to customers and prospects across Scotland.
In fact, it came up on the phone today whilst speaking to a joiner from Inverness who explained that he faces cashflow pressure because he has to buy materials and pay sub-contractors long before his clients pay their invoices. He was often subsidising his business from his personal funds or using credit cards. He genuinely did not realise he could refinance his van.
So can I refinance my van?
Yes.
Whether you have one van, ten vans or a hundred, and whether you need cash to pay for materials, pay contractors, settle a tax bill or simply give your business breathing room, refinancing the vehicle you already own could be the answer.
How does van refinance work?
If your van is owned outright, or even if it still has an existing finance agreement outstanding, a lender can advance funds against its value. You continue using the van as normal. The finance is secured against the vehicle, not your property, which means no solicitors, no delays and no floating charge over your business.
If there is an existing agreement on the van, the lender will settle it as part of the payout and the balance comes to you. You then have a single new agreement, often over a longer term, which can reduce monthly payments at the same time as putting cash in your account.
What values can be refinanced?
Most lenders have a minimum of around £15,000 to £25,000. Vans at the lower end of the market may not reach that threshold, but a newer, heavier or specialist van, or a group of vans considered together, very often will. It is worth a conversation before assuming it cannot be done.
Who we are
Mackenzie Commercial Finance are Scottish asset finance brokers with a lending panel of over 120 lenders. We are specialists in refinance, with director Martin Mackenzie having spent twenty years in banking and finance, the majority focused on asset finance and refinance with Close Brothers Asset Finance and Highland Credit and Leasing Services.
We are based in Inverness but work across the whole of Scotland. Call us whether you are in Inverness, Glasgow, Edinburgh, Dundee or the most remote village in Shetland.
Frequently asked questions
These answers are general information only. Any actual finance offer depends on a full proposal and credit underwriting by the lender, and is not case-specific.
Can I refinance a van I already own outright?
How much can I borrow against my van?
Can I refinance a van that still has finance on it?
What types of van can be refinanced?
How quickly can refinance funds be released?
Does refinancing a van affect my credit rating?
This article contains the personal opinions and observations of the author, based on experience as a commercial finance broker. It is for general information only and does not constitute financial advice. Individual circumstances vary and any finance decision should be based on your own situation.
