Truck finance and HGV finance

Pick up truck finance

There’s a wide range of ways to finance your truck, whether you want to purchase a new HGV or refinance one.

How to finance a truck

Hire purchase gives you flexibility to spread the cost over time, without needing to pay a large up front cost. It can be used for a wide range of items, whether you need a truck or manufacturing equipment.

With hire purchase, you’ll normally have fixed monthly repayments so you can manage cashflow during the term, and when you’ve finished making repayments, your business will own the asset. Hire purchase is just that — you ‘hire’ the asset until you’ve paid enough to ‘purchase’ it.

Sale and HP Back for trucks

Sale and Hire Purchase Back (or ‘sale and HP back’ for short) is a way to unlock cash in items your business already owns. It’s a good way of using trucks and HGVs to finance your expansion plans.

With sale and HP back, the lender buys your truck at an agreed value and then finances it back to you using hire purchase. That means you no longer own the truck, but you’ll keep using it because you’re hiring it from the lender.

Sale and HP back is available to a wide variety of businesses, from sole traders to large established firms, and can be used on a wide variety of assets.

Lease finance for trucks

If you want a flexible form of truck finance for your business, leasing gives you the freedom you need. One of the biggest advantages is the ability to regularly upgrade the truck or HGV — and in some leasing arrangements, such as sale and leaseback, you have the option to own the asset at the end of the term, upgrade it, or simply give it back.

With leasing, the item counts as a monthly expense rather than an owned asset on the balance sheet, which can be tax efficient for some businesses too. There are various sub-types of vehicle lease, so you can decide whether you’d like maintenance and insurance to be included, and whether you need the item for its whole working life or a shorter period.

Refinancing trucks and HGVs

Refinancing is a way to either restructure existing HGV finance, or to release cash from a vehicle you already own. It’s a form of asset-backed lending, which means the amount you can borrow is related to the value of the truck or HGV it’s based on.

We can help

Our team of Business Finance Specialists can find the right refinance facility for your business, whether you own the asset outright or not.

In addition to truck finance, we can also help with tanker finance, tipper finance or trailer finance.

If you’re in the haulage industry, financing trucks isn’t your only funding challenge. Cash flow is the lifeblood of your business, and we can help you with a wide range of working capital finance solutions, from the well-known like factoring and invoice discounting, to innovative new alternative finance solutions. If you’re looking to expand, there is a range of longer-term growth finance options, or trade finance if you trade overseas. We can also help with HGV training finance.