Finance your van with a business loan
Pick the amount that suit your needs and give your business details in less than 5 minutes. We'll give you an answer in 1 working day.
- Apply in minutes
- Repay early with no fees
- From 1 day to 24 months

Loved by over 90,000+ small businesses since 2012
How does business van finance usually work?
Many businesses use vehicles to make running their day-to-day possible – but not all of them have the cash they need to pay for one upfront. That’s where business van finance comes in. But what are the different types of finance available? From contract hire to hire purchase, or leasing to a business loan, there are a few different options to choose from. But how do you know which is right for you?
In the past, buying a van for your business would have required you to have the cash you need to pay for it upfront. That could mean require a lot of working capital, especially if you needed to purchase a whole fleet of company vehicles. Business van finance makes this a little easier, providing you with the funds you need to purchase vehicles and grow your business.
Read below to find out about the different types of business van finance.
How does van finance works with iwoca
Apply in minutes
It takes five minutes from start to finish. We're designed with small businesses in mind, so we'll just need the basics about your business to make a decision.
Use your funds
We'll approve you based on your business performance. You then transfer as much as you need to your bank account, and the funds will typically be in your account in hours.
Repay or top up
We don't charge early repayment fees: we only charge interest for the days you have the money. If you need more funds, applying for a top up is easy. As your business grows your credit limit will too.
Fund your van with a business loan

No early repayment fees
If you want to repay early that’s great. We’ll never charge a fee for that. In fact, more than 20% of our customers repay ahead of schedule in their first six months.

Easy application
We’ve designed our application process to be as slick as possible: link your bank account and get going in minutes.

No hanging around
Once you’re approved, we’ll ping the money straight to your account. And if you need more later, you can apply for a top-up.
Frequently asked questions
There are a lot of options out there when it comes to business finance. Here are some of the common questions we get asked.
Before you sign on the dotted line, it’s important to make sure you can afford the van finance you’ve chosen. Interest rates will vary depending on your turnover, trading history and the age of your business.
Interest rates on an iwoca Flexi-Loan vary from 2% to 6% per month. We know that no two businesses are the same – apply today to see how much you could borrow. We’ll let you know how much it will cost you and it won’t affect your credit score.
We're happy to consider a wide range of businesses ranging from new startups to established companies. However you must have a UK-based business and operate as a limited company or a partnership. Startup businesses are limited to a maximum credit limit of £10,000.
Sign up online and link your business accounts to iwoca, or upload bank statements, VAT returns or company accounts. We will make an instant assessment of your business and confirm your offer within hours. If you are happy to proceed you can withdraw the funds to your bank account.
It takes a few minutes to apply. Your account manager will then be able to review your account and put an offer in place within hours. Once you are approved you can withdraw the funds to your bank account, 24/7.
Interest rates vary from 2% to 6% per month. Sign up to receive a tailored offer, with no obligation to proceed. Interest accrues daily which means you only pay for each day you have the funds. For example a business on a 3% monthly rate would only pay £1 per day for every £1,000 they had outstanding.
Minimum repayments must be made either weekly or monthly, depending on the repayment schedule you agree to when requesting funds. However, if you wish to keep the funds for less than the full 24 month term you can choose to repay early for free.
Minimum repayments are taken automatically via your registered debit card. Just make sure there are sufficient funds available in your bank account on your repayment date. You can also make free early repayments by bank transfer or debit card through your online account.
We do our best to lend responsibly and encourage you to ensure that you can afford repayments before taking a loan. However, if circumstances change and you have difficulty making repayments get in touch with your account manager on 020 3397 3375. They will try to help you get back on track.
The different types of business van finance
So, you now know what business van finance is – but what’s the difference between a contract hire and a hire purchase? We’ve done the research so you don’t have to. Read on to learn about each type of business van finance and whether it’s suitable for you.
- contract hire: if you need a van for your business, but aren’t bothered about owning it at the end of your contract, then look no further – contract hire could be the right type of van financing for you. Whether you’re a sole trader or the director of a limited company, contract hire acts as an extended rental option for businesses looking to get their hands on a new set of wheels. At the start of your contract, you’ll pay a larger initial payment followed by fixed monthly instalments. These cover your use of the van for an agreed mileage, and you’ll usually have the option to pay a little extra for repairs and roadside assistance if you run into trouble. You’ll get a new van every couple of years, and, because you’re not purchasing it, you won’t have to pay a larger, final instalment at the end of your contract.
- leasing: if you want to lease a van through a limited company or as a sole trader, and work in an occupation where you’re likely to be driving a lot of miles, leasing could work for your business. That’s because you’ll take on responsibility for the condition of your vehicle, with no caps on mileage and the chance to be rewarded for giving it back in good condition. You and your dealer will agree on what the van’s worth at the beginning of your contract – if this value turns out to be higher at the end, you’ll pocket the extra, while if it’s lower, you may have to front the difference. The actual payment structure of a van finance lease is similar to a contract hire – after paying a larger sum upfront, you’ll be responsible for fixed monthly payments to cover its use.
- hire purchase: a van hire purchase is very similar to a contract hire, except when your finance is finished, you’ll own the vehicle outright. With this form of business van finance, you’ll pay two larger ‘balloon payments’ at the start and end of your contract, with fixed monthly instalments in the middle. Contract lengths are often fairly flexible, as are restrictions on mileage, with some dealers even offering additional breakdown and repairs cover for a little extra each month. At the end of your contract, you’ll own the van, although it could be a few years old. If you choose to, you’ll be able to use the value of this van as a deposit towards your next vehicle to make sure your fleet stays up to date.
- personal loan or personal contract purchase: a personal contract purchase is the same as a hire purchase, except the finance will be in your own name as opposed to being a form of commercial van finance. You’ll personally own the van at the end of your contract. A personal loan is the same, except there’s no limitations on what you can spend your money on. You’ll be able to choose to purchase a van for your business, alongside machinery or stock too. This makes a personal loan a very flexible option, although because it will be in your own name, be aware that they're likely to be personally guaranteed against your own possessions, such as your car or house.
- business loan: If you want a van financing solution that offers the same level of flexibility as a personal loan, but is written in the name of your business, then a business loan could be what you’re looking for. An iwoca Flexi-Loan is a business loan that you could use to purchase a vehicle – borrow up to £500,000 to spend on a van of your choice and use it to expand your business into new areas, with no limitations on mileage holding you back. Choose to keep the money for up to two years and apply with a simple, paperless application that could see the money in your account the same day.
Read our in-depth guides about the world of business finance, designed to help you achieve more.
The iwoca story
Over the past eleven years iwoca has grown from an ambitious fintech start-up to one of the fastest-growing and biggest business lenders in Europe. Now we're a team of around 400 in London, Leeds and Frankfurt working towards the goal of funding one million small businesses.
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Questions? We're here to help
Call us at 020 3397 3375 from Monday to Friday (9am - 6pm). We can take your business loan application over the phone, or answer your questions about applying online.
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