How to apply for vehicle finance as a business or sole trader

When applying for business vehicle finance, there are a number of things to consider. First, you’ll need to understand the application process requirements and determine if your business is eligible. If your business qualifies, you can then look at the different business leasing options available.

We’ll explore what you should expect when applying for business vehicle finance and how Synergy can help find a business leasing option that meets your needs.

Who Qualifies For Business Vehicle Financing?

Different types of businesses can qualify for business vehicle financing, but this will come with several conditions. You will likely need to prove your financial status, the lease vehicle’s intended use, and pass all relevant financial checks. If you’d like to know more, check out our guide on checking your eligibility for a business lease.

Can A Sole Trader Get A Vehicle On Finance?

Despite being self-employed, a sole trader is eligible for business vehicle financing. You can apply for commercial vehicle financing, which often proves invaluable if you rely on transport during your working week. Again, certain conditions need to be met and credit checks passed before you are accepted for business vehicle finance.

What Factors Do Vehicle Finance Companies Consider In Your Business Finance Application?

Once you’ve completed the application, vehicle finance companies will consider a number of factors before making a decision. They will first verify any financial information on the business and may ask to see copy of the accounts or bank statements.

Other factors include how long the business has been trading, its annual turnover, and a directors credit history. These rigorous checks will help determine a business’s vehicle finance eligibility.

What Documents Do I Need For Business Car Finance?

A business must provide key details and documents when completing an application for business vehicle financing. A company name and registered address are required, along with contact information of who will be handling the lease on behalf of the business.

Depending on the finance provider, company director details may also be required, including their date of birth and home address.

What Documents Do I Need To Finance A Car If I’m Self-Employed?

If you’re a sole trader or self-employed, you’ll likely ask yourself: What documents do I need for car finance? The application process for business vehicle finance is primarily the same for all businesses.

You may be required to provide the latest set of accounts and 3-months bank statements. In most cases, a business requires two years of published accounts to be eligible for business leasing. However, there are certain finance providers who will look a new start-up company depending on the sector they operate in.

This will give vehicle finance companies an insight into a businesses financial situation and allow them to decide if they are eligible for a business finance vehicle.

How Can Sole Traders Increase Their Chances Of Getting Vehicle Finance?

Before applying for vehicle finance, it’s always worth strengthening your application to give your business the best chance of approval. This is particularly important for sole traders who aren’t guaranteed a regular income and pose a higher risk to vehicle finance companies.

Sole traders can increase their chances by being upfront and honest about their pay. Providing exaggerated figures will not help the application and can contribute to a decline from vehicle finance companies. Instead, evidencing accurate accounting should help show a consistent income and a capability to keep up with monthly payments.

What’s The Best Way To Finance Vehicles For My Business?

The best option for financing a business vehicle will depend on your leasing needs. We’d suggest looking at the type of vehicle you require, what the vehicle will be used for within your business and any business lease deals available.

Explore the different business vehicle finance opportunities, looking at the employees in your business who will be using the vehicle during the lease. Consider any modifications that might be made and the level of condition it must be returned at the end of the agreement.

What Is The Best Way To Finance A Car For Sole Traders?

As mentioned previously, the best way to finance a car for the self-employed will depend on your needs as a business owner. Sole traders can apply for the same business vehicle financing as any other type of business. Self-employed people will need to decide if they want to pay towards ownership or return the vehicle at the end of the lease and get something new.

If you’d like to know about your business vehicle finance options, get in touch with Synergy today. We’re happy to answer any questions and can check your eligibility for business vehicle finance.