Starting a new limited company (Ltd) is an exciting milestone, and having the right commercial vehicle is crucial for supporting your operations. Leasing a van can be an ideal option for new businesses, offering cost-effective financing, flexibility, and access to the latest vehicles. You may be wondering: Can I lease a van with a new limited company? The answer is yes, and in this guide, we’ll walk you through everything you need to know to secure a business van lease for your new company.
How does a business van lease work?
A van lease for a limited company allows your business to use a vehicle for a set period without buying it outright. Lease terms typically range from 2 to 5 years, with fixed monthly payments for the use of the van. At the end of the lease, the van is returned to the finance provider, meaning your company does not own the vehicle.
Key components of a lease include:
Initial rental/deposit – Often equivalent to 3, 6, 9, or 12 monthly payments, this upfront payment reduces your ongoing monthly rentals. For example, a £250/month van with a six-month deposit would cost £1,500 initially, followed by £250 per month.
Mileage allowance – You estimate your annual mileage at the start of the contract, which determines your lease terms. Exceeding this can incur additional mileage charges.
Benefits of leasing a van for a new business
Leasing a van through your limited company provides multiple advantages, particularly for new businesses:
- Lower upfront costs – Avoid paying the full price upfront, freeing funds for growth and other business expenses.
- Affordable monthly payments – You’re only paying for the van’s usage, which often results in lower monthly payments compared to finance agreements.
- Tax advantages – Lease payments are typically tax-deductible, reducing your company’s taxable income. VAT-registered businesses can also reclaim 100% of the VAT.
- Flexibility – At the end of the lease, you can upgrade to a newer vehicle to suit evolving business needs.
- Warranty protection – Leased vehicles usually include manufacturer warranties, covering unexpected repairs.
- No depreciation worries – Since you don’t own the vehicle, its declining market value is not your concern.
If you’re still uncertain about whether leasing a van for business purposes is the right decision, or if you’d like to gain additional information about the pros and cons of leasing, we recommend reading our blog post “Should you buy or lease a van for your business?“
Factors you should consider before leasing a van for a new business
Before committing to a lease, consider the following:
- Budget – Assess your company’s finances, including insurance, maintenance, and taxes. Choose a van that fits your financial capability.
- Contract length – Shorter terms provide flexibility, while longer terms may offer lower monthly payments.
- Vehicle specifications – Choose a van that meets operational needs: size, load capacity, fuel efficiency, and whether you require specific modifications.
- Mileage – Accurately forecast your annual mileage to avoid excess mileage charges.
- Maintenance – Consider including a maintenance package for peace of mind and compliance with lease requirements.
Requirements for leasing a van with a new limited company
Even if your Ltd company is newly formed, you can still qualify for a van lease. However, leasing companies have specific requirements:
- Credit rating – Lenders will assess your business credit. If your company is new, your personal credit history as a director may also be considered. A strong credit score improves approval chances and lease terms.
- Proof of company registration – You must provide official documentation such as your certificate of incorporation.
- Trading history – Some funders may request profit and loss statements, balance sheets, or a guarantor if your business has limited trading history.
- Business plan – A detailed plan outlining goals, strategies, and financial projections can improve approval chances.
At Commercial Vehicle Contracts, we work with multiple funders to match your business with lenders most likely to approve your lease application, even for newly formed Ltd companies.
Business Contract Hire vs Finance Lease agreements
For UK limited companies, Business Contract Hire (BCH) and Finance Lease are the most popular options:
Business Contract Hire – Fixed monthly payments; return the van at the end of the contract with no further obligations.
Finance Lease – Lower monthly payments; at the end of the term, you sell the vehicle to a third party and use the proceeds to pay the balloon payment. If the vehicle sells for more than the balloon payment, your business keeps the difference.
Both options allow your company to drive a new van without ownership, but the key difference is the handling at the end of the lease.
How to find the best van leasing deal?
Selecting the right van can feel overwhelming, especially for new businesses. Our van leasing specialists provide tailored advice to help you choose the perfect vehicle.
As part of your lease deal, we can arrange a host of van leasing services, including:
- Tail lifts for effortless loading
- Toolboxes & storage add secure lockers for valuable equipment.
- Shelving systems for perfect organisation
- Lashing points & headboards enhance cargo security.
- Refrigerated vans for temperature-sensitive cargo
- Ply lining to protect your panel van
- Tow bars for additional hauling capability
- Chapter 8 chevrons for full compliance
- Specialist glass racks for glazing professionals
- Cherry picker platforms for elevated access
…and virtually any other modification your business requires
The key advantage is that all modifications are completed professionally before your vehicle is delivered, ensuring your new vehicle is fully equipped and ready to work from day one. We streamline the entire process, saving you the time and hassle of coordinating with multiple suppliers.
Why lease with Commercial Vehicle Contracts?
Leasing is the smart financial strategy for accessing a brand-new, high-spec vehicle without the capital outlay.
- Low initial outlay: Get started with minimal upfront costs compared to a large purchase deposit.
- Fixed monthly budgeting: Protect your cash flow with predictable, fixed monthly payments for the duration of your contract.
- Always drive the latest: Upgrade to a new model every 2-4 years, ensuring you always have the newest technology, safety features, and maximum efficiency.
- No depreciation worries: We bear the risk of the vehicle’s future value, so you don’t have to worry about resale value or market fluctuations.
- Professional image: Enhanced business presentation and credibility
- Tax efficiency: VAT reclaim and capital allowance benefits
- Latest compliance: Always meet current emissions and safety standards
- 24/7 customer portal: Manage your lease easily online, track orders, check vehicle details, and contact your account manager anytime.
- Expert guidance: Our dedicated team will solve all your lease queries and offer expert advice.
- Dedicated account management: Expert support throughout your lease term.
- A seamless, all-inclusive service: Our lease process is designed to be straightforward, saving you both time and money. We manage everything to get you driving your new van quickly and efficiently.
- Comprehensive maintenance packages available
We also leverage long-standing relationships with dealers to secure competitive pricing, ensuring your business gets the best deal possible.
Reach out to our team to discuss your requirements today and learn how Commercial Vehicle Contracts can help fuel the success of your business.
Find the perfect lease deal today!
With our extensive range of vans available for lease, you’re guaranteed to find the perfect vehicle to meet your needs. As proud members of the British Vehicle Rental and Leasing Association (BVRLA), we uphold the highest standards of service and professionalism. Plus, with our Price Promise, you can be confident you’re getting the best deal available. Rest assured, we are also authorised and regulated by the Financial Conduct Authority (FCA), ensuring transparency and trust in every transaction.
Many UK businesses have already benefited from our hassle-free approach to securing a brand-new van, and now it’s your turn to take advantage of our exceptional services.
 Call our expert team for friendly, no-obligation advice
 
