Applying for Van Finance When Self-Employed

Introduction

Applying for van finance when you are self-employed involves specific considerations that differ from traditional employee finance applications. This guide will help you understand the steps involved, the documentation you may need to provide, and how lenders typically assess self-employed applicants.

Step 1: Assess Your Finance Needs

Before starting your application, clarify the van type and finance product that suits your business needs. Consider:

• The van's intended use and size

• Your budget for monthly payments and deposit

• The type of finance (Hire Purchase, Lease Purchase, Rent2Buy, etc.)

Step 2: Prepare Proof of Income Documents

Lenders require evidence to confirm your ability to meet repayments. For self-employed individuals, proof of income can include:

• Copies of your latest tax returns (SA302 form) or tax calculation from HMRC

• Recent business bank statements (usually last 3-6 months)

• Accountant-prepared profit and loss statements or accounts

• VAT returns, if applicable

Note that different lenders have varying documentation requirements and may assess income differently. Having these documents ready helps ensure a smoother application process.

Step 3: Understand the Credit Check Process

A credit check is a standard part of any finance application, including for self-employed applicants. This will typically include:

• Checking your credit history and score

• Reviewing any adverse credit, such as missed payments or existing obligations

If you have poor credit, specialist lenders may be available through finance brokers who understand sub-prime lending options. Van Finance Company works with a panel of lenders inclusive of those who consider adverse credit.

Step 4: Gather Additional Identification and Business Details

Besides income proof, you may need to submit:

• Personal identification (passport or driving license)

• Proof of address (utility bills, bank statements)

• Details about your business (registration numbers if applicable)

• Duration of self-employment and any supporting references

Step 5: Choose a Finance Broker or Direct Lender

Finance brokers, such as Van Finance Company, can facilitate applications across multiple lenders to improve your chances of finding suitable finance terms. Brokers assist with:

• Matching you to lenders who accept self-employed applicants

• Explaining lender-specific requirements

• Guiding you through paperwork and application

Remember, brokers are intermediaries and not the lenders themselves.

Step 6: Submit Your Application

With documents prepared, proceed to submit your finance application either online or with broker assistance. During the process:

• Provide accurate and comprehensive information

• Disclose any relevant financial commitments

• Understand that decisions depend on lender criteria

Typical decisions can be received within 60 minutes during working hours for most applicants.

Step 7: Review the Finance Offer Carefully

If offered finance, review the terms carefully, including:

• Duration of the agreement

• Deposit amount

• Monthly repayments

• Annual Percentage Rate (APR)

• Any fees or penalties

Be aware that no finance offer is guaranteed, and terms depend on individual circumstances.

Step 8: Arrange Van Delivery and Warranty

Once finance is in place and you've selected your van, confirm delivery options. Van Finance Company provides free UK delivery to your home or place of work. Additionally, vans come with a comprehensive 3-month or 3,000-mile in-house warranty with optional extended warranties available.

Important Considerations

• Lender criteria vary; some may request longer trading histories or higher deposits

• Self-employed applicants should confirm their VAT and accounting records are up to date

• Finance applications are assessed on affordability and creditworthiness; approval cannot be guaranteed

• Regular communication with your broker or lender helps clarify any application questions

Conclusion

Applying for van finance as a self-employed person involves gathering appropriate proof of income, understanding lender requirements, and choosing the right finance product. Preparing your documents in advance and working with a knowledgeable broker can streamline the process.

If you are self-employed and looking to finance a van, take these steps to prepare and consider consulting with Van Finance Company to explore your options.

View available vans and apply when you are ready.