Business
Car Finance
Finance options for limited companies, LLPs, partnerships and sole traders. We search a panel of business lenders for a monthly figure that suits your trading profile, and the initial eligibility check is a soft search.
Ltd, LLP, partnership and sole trader options.
Check eligibility with no impact on your score.
Soft search · No impact on your credit score
Can my business get car finance?
Yes, in many cases. A business car finance agreement is held in your company or trading name rather than yours personally. As a broker we work with lenders who consider business applications, so trading history and business circumstances are weighed alongside the usual affordability picture.
Who the lender assesses depends on how long the business has traded. Newer businesses may also need the directors or partners behind it to be assessed. CarFinanced is a credit broker, not a lender, and makes no advice or recommendation. All finance is subject to status. See the finance glossary
Eligibility check first
Share a few details about the business and the finance you are looking for. The initial check matches your profile to lenders on our panel before any formal application is made.
Agreement in your business name
The finance sits between the lender and your business, not with you personally. On HP the car becomes a company asset at the final payment. On PCP the three end-of-term choices stay with the business too.
FCA regulated broker
CarFinanced Ltd is authorised and regulated by the Financial Conduct Authority under firm reference number 1014460. All finance is subject to status.
How business car finance works
The lender writes the agreement with your business, not with you personally. The monthly figure stays the same for the whole term. VAT and tax treatment follow HMRC rules for the structure you choose.
Business is the applicant
The agreement sits in your company or trading name. The lender assesses the business and, depending on how long it has traded, may also assess the directors or partners behind it.
Fixed monthly payments
Payments stay the same every month across the agreed term, so the car cost is easy to plan around in your trading cashflow and your management accounts.
Eligibility check first
Share a few details about the business and the finance you are looking for. The initial check matches your profile to lenders on our panel before any formal application is made.
Term that fits cashflow
Choose a term, typically between 24 and 60 months, that fits what the business can comfortably afford each month. A longer term lowers the monthly, a shorter term pays less interest overall.
HP or PCP
Two agreement types are considered. Hire Purchase ends with the car on your business balance sheet. Personal Contract Purchase keeps three end-of-term choices open for the business.
What affects your business application?
Lenders look at the business trading history, the figures on your latest accounts, the directors or partners behind it, and whether the monthly fits comfortably against trading income. Newer businesses may need the people on the application assessed too.
A soft eligibility check with us returns the business options our panel of lenders can consider, assessed on the whole picture rather than one number. CarFinanced is a credit broker, not a lender, and makes no advice or recommendation.
What a lender looks for
What might it cost?
Move the controls to a borrowing amount, a term and a business profile that feel close to yours. The figure on the right updates as you change it. It is a picture, not a quote.
Your figures
Example business HP APRs: Startup 19.9% · Growing 14.9% · Established 9.9% · Prime 7.9%. Actual rates depend on the lender's assessment of the business, the applicable directors or partners, and the amount and term requested.
Worth doing, with your eyes open.
Business car finance keeps the car on the business balance sheet and may suit the tax treatment better. It also commits the business to a fixed monthly for the whole term. Both of those are true. Here is each side laid out so you can weigh them before the business commits.
What you gain
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Keeps your personal credit file separate. The agreement is with the business, so monthly payments and the account itself sit on the business's record rather than yours.
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Builds business credit on time. On-time monthly payments contribute to the business's trading history, which can help with the next business application.
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Fixed monthly for cashflow planning. You know the figure on day one and it does not change, which makes it easy to plan around in management accounts.
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Potential tax treatment, depending on your setup. VAT and capital allowances follow HMRC rules for your business structure and how the car is used. Confirm the detail with your accountant.
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HP ends with the car on the business books. The final payment transfers ownership to the business. On PCP the business keeps the hand-back, part-exchange or buy choice at the end.
What to weigh
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The business is committed for the term. The agreement runs for the full term you chose. Trading income has to carry the monthly whether the business grows or shrinks.
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A personal guarantee may be required. Newer businesses or those with a thin trading history may need a director or partner to guarantee the agreement personally. That signature changes who is liable if the business cannot pay.
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The lender assesses the business figures. Filed accounts, bank conduct and time trading all weigh in. A business that has not filed accounts yet has less to be assessed on, which can affect the options.
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Changing structure mid-term is complex. If the business changes name, structure or ownership during the agreement, the lender has to be told and may need to approve the change. Terms are set in your agreement.
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Benefit in Kind can apply. If a director or employee uses the car personally, HMRC may treat it as a Benefit in Kind, which creates a tax charge for the person using it. Confirm with your accountant.
All finance is subject to status, affordability and the lender’s assessment. Missing payments can lead to additional charges and loss of the vehicle. Tax treatment depends on your business structure and personal circumstances.
Give the business application a better shot.
Six things that genuinely help a business application, inside the owner’s control. Tick the ones the business has done (or will do) and the readiness panel updates. Nothing here is a credit decision, it is a picture of how ready a business application is likely to feel.
A general readiness guide, not a credit decision. All finance is subject to status, affordability and the lender’s assessment.
How CarFinanced arranges business car finance.
Check your eligibility
You give us a few details about the business, the directors or partners, and the finance you are looking for. The initial eligibility check returns the business options our panel of lenders can consider.
We search our lender panel
We look for the best rate from our panel of lenders that write business car finance, including HP and PCP in the business name, and offer you the best deal you are eligible for. We do not give advice or a recommendation.
Complete the agreement
All business finance is subject to status, affordability and the lender’s assessment. A personal guarantee from a director or partner may be required. Depending on the supply route, a separate administration fee of £299 may apply.
Business car finance, or personal in your name?
Two routes to the same car. The difference is whose name the agreement is in, which credit file the lender checks, and where the monthly sits.
Six things that decide which route the car belongs on.
Could you apply for HP? Most UK drivers can.
Here is the honest bar for a Hire Purchase application. Meeting these does not promise a lender will say yes, it just means an eligibility check is worth running. The lender makes the final call on affordability, status and your figures.
18 or over, UK resident
You are 18 or older and live in the UK. A UK address history of at least three years helps lenders verify who you are.
Full UK driving licence
Full category B licence, valid and in your current name. Provisional licences do not qualify on their own.
UK bank account
Monthly payments are collected by direct debit from a UK current account in your name.
A regular income
Employed, self-employed or on a pension. Lenders look at the monthly figure against your other commitments, not a job title.
Affordable monthly figure
The monthly payment leaves room for rent or mortgage, bills and existing credit. A stretch monthly is harder for a lender to approve.
What we do not ask for
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A perfect credit score. Our panel includes lenders used to mixed records. The lender looks at the whole picture, not just a number.
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A deposit. No deposit HP is available on our panel. A deposit lowers the monthly figure but is not required to apply.
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The car picked already. Check eligibility first, then pick a car to the amount agreed. Dealer or private sale, both work.
Lenders may ask for additional documents, such as proof of income, bank statements, proof of address or ID, before confirming an offer.
Making car finance simple for 10,000+ customers
“I’ve bought many cars using finance companies in the past but none have been as good as CarFinanced. Special thanks for overseeing the process and ensuring I got the best deal on my new car.”
“Quick, simple process. My account manager was great throughout. Very helpful, professional and quick with responses to any questions I had.”
“CarFinanced explained the finance agreement in detail, which gave us confidence to move forward with the car.”
“Thank you CarFinanced. I applied and picked up my car within a few hours. Outstanding service from all the team.”
“Excellent service from start to finish. Everything was explained clearly and my questions were answered efficiently.”
“Excellent service. The team arranged the finance quickly and remained very responsive throughout the process.”
“My account manager was absolutely first class. Patient, knowledgeable and nothing was too much trouble.”
“Fantastic service. Very professional and polite, making the whole experience straightforward from beginning to end.”
01 Can my business get car finance?
In most cases, yes. UK-registered limited companies, LLPs, partnerships and sole traders can apply through our panel of business lenders. The agreement is in the business name and the lender assesses the business figures. All finance is subject to status, affordability and the lender’s assessment.
02 How does business car finance work?
The lender advances the car price and the business repays it, plus interest, over an agreed term, usually between 24 and 60 months. The monthly figure stays the same for the whole term. On Hire Purchase the business owns the car at the end; on PCP the business keeps the hand-back, part-exchange or buy choice.
How business car finance works →03 Can a newer business apply?
Yes, newer businesses can apply. With less trading history for a lender to weigh, a personal guarantee from a director or partner is often required so the lender has someone to look to if the business cannot pay. Subject to status and the lender’s assessment.
04 Will I need to give a personal guarantee?
Often yes, especially for a newer business or a thin trading record. A personal guarantee from a director or partner means that if the business cannot keep the agreement up, the guarantor is responsible personally. It is a serious commitment and the lender will set out the terms clearly before you sign.
05 HP or PCP in the business name?
Both are available in the business name on most agreements. HP spreads the full price across the term and ends with the business owning the car on its books. PCP keeps the monthly lower by deferring part of the balance to a Guaranteed Future Value payment at the end, which the business can pay, part-exchange or hand back.
06 What about tax, VAT and capital allowances?
Tax treatment depends on your business structure, how the car is used and HMRC’s rules at the time. VAT recovery, capital allowances and lease rental treatment all vary. CarFinanced is a credit broker, not a tax adviser, so confirm the detail with your accountant before you commit.
07 Can a director or employee use the car personally?
Yes, but personal use of a company car creates a Benefit in Kind, which is a tax charge for the person using it. The amount depends on the car’s list price, CO2 emissions and electric range. Insurance has to cover business and private use. Confirm the detail with your accountant.
08 Is “guaranteed” business car finance real?
No. UK consumer credit rules require every lender to assess affordability and status on each business application, so no broker or lender can guarantee acceptance in advance. Anyone promising that is misleading you. What CarFinanced can offer is an eligibility check that returns the business options our panel can consider.
09 Can a sole trader apply as a business?
Yes. Sole traders with a trading name can apply through the business route, though some lenders assess a sole trader more like a personal application because there is no separate legal entity. We will tell you which route is best for your setup when you run the eligibility check.
10 Can the business settle the agreement early?
Yes. You can request a settlement figure from the lender at any time and the lender will set out the exact amount to clear the agreement. Terms vary by lender and are set in your agreement, so request the figure before you commit to the settlement.
Early settlement guide →Ready to see your business car finance options?
Start with an eligibility check and see what may be available for the business based on its circumstances.
