How to buy a truck on finance

The UK truck market grew by 13.5% in 2023, making this the market’s second year of growth in a row. If, like many others, you’re considering purchasing or leasing a truck or several trucks to support your business, this is the article for you.

What is truck finance?

Truck finance is an agreement entered into by a person or business and a lender in which the lender extends the funds required to purchase a truck, or extends use or ownership of the truck itself, in exchange for a monthly payment.

Benefits of getting finance on trucks

• Cash flow: Purchasing a truck outright can be expensive. Truck finance preserves cash flow by enabling the use or acquisition of a truck without the big upfront cost. 

• Flexibility: Depending on your needs, truck finance can provide a flexible way to exchange, upgrade, and extend use of a truck or fleet of trucks. There is also usually flexibility around term lengths and monthly payment costs, which can enable more accurate company budgeting.

• Access: Truck finance can make it easier for businesses and sole traders to purchase or use newer models, a greater number of vehicles, and even more environmentally friendly trucks, since there is a reduced upfront cost.

Truck finance risks

• Credit score: Failure to meet repayment obligations can result in a hit to your personal or company credit score, which can impact your ability to borrow in the future. 

• Mileage restrictions: Depending on your agreement with your lender, you may be restricted in the number of miles you can drive, which can become a problem if your needs change half way during the term length. Be open and transparent with your lender about your needs.

• Changing circumstances: The economy can go down, as well as up. Think carefully about your contingency plan if your circumstances were to change, as you will still be liable to meet your repayment obligations.

👉 Looking for a Range Rover? Find a Range Rover business lease here. 

What types of financing on trucks are available?

• Asset finance: Asset finance is the umbrella term under which the following finance types sit. 

• Hire purchase: Buy a truck – pay monthly.

• Balloon hire purchase: This is similar to hire purchase, except you usually pay less per month and have the option to return the truck to the lender at the end of the term, or pay a final ballooned payment to take ownership of the truck. 

• Commercial vehicle lease: Essentially, rent-a-truck. Pay monthly for its use and then at the end of the term you can either return the truck to the lender or enter into a new business vehicle lease with the lender for the same truck. You could also take a look at some of their other models and see if they’d be open to a new lease with a different vehicle.

• Finance lease: With a finance lease, you choose the truck, the lender buys it, you borrow it from them and pay monthly. At the end of the agreed period, you can choose to sell the vehicle on behalf of the lender, continue leasing the truck, return it to the lender, or take on ownership.

👉 Are you a sole trader? Find out more about equipment finance for sole traders. 

How to finance a truck for my business?

Financing a truck for your business can be done by following these steps:

• Find a suitable finance option: The first step is to decide which option you’d like to go for. Use our “types of financing” section above to help you decide. Then, you'll want to find a lender you match with. We can help you there – as a broker, we match eligible applicants to suitable lenders. Apply here.

• Submit an application: Gather together your company information, information on the truck or trucks you want to purchase or lease, possibly a cash flow forecast if required, and information on your needs. For example, do you want to use the truck for 2 years, or 5? Do you want to drive 10,000 miles a year, or 50,000? Once you’ve gathered all your documents, submit an application.

• Wait for a decision: It’s time to wait. Depending on the lender’s process and your company history, this portion can sometimes take mere minutes. Other times, it can take longer.

• Drive away: If the lender approves your application, it’s time to pick up your keys and drive away.

• Renew, return, retain: Depending on the terms of your agreement, once the agreed term length is over, you may have the option to create a new agreement to extend use of the truck, return the truck to the lender, or keep it.

👉 Looking for van finance or a van lease?. 

Why use Funding Options by Tide to help you find truck finance?

We support businesses across the UK in finding suitable funding solutions. We believe in putting businesses first, so we work hard to match eligible applicants to lenders who fit with their real needs. 

Here’s what one of our customers, Tim, who provides gas, heating, and boiler services to homes across the UK, had to say about working with our experts:

“It was great to have someone who was there to actually listen to you and what you needed, and provide you with the correct finance that's right for you, rather than what's right for them.” 

Just submit your information here and we’ll see if we can match you to the most suitable lender we can find based on your personal circumstances and needs.

Eligible applicants can get:

• Access to over 120 lenders

• A dedicated business finance specialist

• A quote that doesn’t affect their credit score – business or personal

• Between £1000 and £20M in funding

• Expert support

• Free quotes and applications

Which finance option should I choose for my truck?

That depends on your goals as a business. Do you want to purchase a new or used truck for commercial purposes but spread the cost across an extended period? Do you want to pay for a vehicle in monthly instalments and then own the vehicle at the end of the term? If so, hire purchase may be for you.

Apply to spread the purchase of a truck across monthly instalments

Or, are you looking for a finance option that will enable you to make use of a truck by paying a monthly fee for a set period of time and then return the vehicle at the end of the period, possibly with the option to extend or renegotiate the agreement or take out a new agreement on a different model? If so, a lease may be more suited to you. Just click the link below to begin an application process.

Apply for a commercial vehicle lease

Apply for commercial truck finance with Funding Options by Tide

Find out if you’re eligible for a free truck finance quote by clicking the link below and submitting your information. Eligible applicants can be connected to our network of over 120 lenders offering up to £20M in business finance.

Find commercial truck finance

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.