A lender asked me last week why any business would pay £60,000 cash for a Range Rover when they could put down a deposit and VAT instead. Fair question. That’s a £60,000 hole in working capital that could be covering payroll, stock, or the next opportunity that needs moving on quickly.
The answer, usually, is that people don’t realise how straightforward vehicle finance actually is. Or how fast.
We’ve arranged about £5 million in asset finance this year – cars, vans, plant, equipment. Most of it for businesses that had been paying cash simply because they hadn’t considered the alternative. Not because the alternative was complicated. Because it looked like it might be.
It isn’t.
If you’re at a dealer looking at a vehicle your business needs, or you’ve got a van that’s just failed and needs replacing this month, we can move quickly. Apply with us on a Tuesday with three months’ bank statements and your latest accounts, and we’ll have you paid out by Friday. Sometimes sooner, depending on the lender and how clean the application is.
That works whether you’re a one-van operation or you’re running a fleet. Company cars, trade vehicles, light commercials – all the same process. The lenders we work with understand business cashflow. They’re not interested in making this difficult.
What they are interested in is businesses that can demonstrate consistent income and aren’t stretched. Which is why we ask for bank statements and accounts up front – not to create barriers, just to make sure we’re approaching the right lender first time. Saves everyone a week.
The deposit varies depending on the vehicle and your situation, but it’s usually manageable. What you’re really doing is protecting working capital and keeping the cash available for the business to use. Fixed monthly cost, predictable, no surprises.
Most of the businesses we work with could pay cash if they wanted to. They just don’t want to anymore. Not when there’s a smarter option that doesn’t tie up capital in a depreciating asset.
If you’ve got vehicles coming up for replacement – or you’re looking at something now – it’s worth a conversation. We’ll tell you straight whether it works or it doesn’t, and if it does, we’ll move quickly.
Three months’ bank statements and your latest accounts. That’s where it starts.
Frequently Asked Questions
Q: How long does vehicle finance typically take from application to receiving funds?
A: If we receive a clean application on a Tuesday – three months’ bank statements and latest accounts – we’ll usually have you paid out by Friday. Sometimes sooner if the lender’s decision-makers are available and everything’s straightforward. The key is having the right documents up front so we can approach the appropriate lender first time.
Q: What types of vehicles can be financed through asset finance?
A: Cars, vans, light commercials, even plant and equipment. Whether you’re looking at a single company car, replacing a trade van, or financing a fleet, the process is the same. The lenders we work with understand business vehicles across all sectors.
Q: Do I need a large deposit to get vehicle finance?
A: The deposit varies depending on the vehicle value and your business circumstances, but it’s usually manageable. What matters more to lenders is consistent income and that you’re not overstretched. We’ll be straight with you about what’s achievable based on your situation.
Q: Why would I finance a vehicle instead of paying cash if I have the funds available?
A: Because that cash in the bank is working capital. A £60,000 vehicle purchase is a £60,000 hole in your cashflow that could cover payroll, stock, or the next business opportunity. Vehicle finance lets you preserve that capital while spreading the cost predictably. You’re not tying up money in a depreciating asset.
About Andy Bissett
Andy Bissett is founder of Shadowfax Funding Solutions, working with established businesses across the UK who need access to finance that makes strategic sense. After more than 20 years in commercial banking with RBS, Yorkshire Bank, and Aldermore, he’s spent enough time watching businesses make financing decisions to know the difference between what sounds good and what actually works. If you’re considering vehicle finance or want to discuss your business funding options, get in touch.