Top 10 £350,000 Van Finance Lenders UK 2026

Van finance at this level typically works as asset finance, where a lender provides the funds to purchase commercial vans and you repay the amount over an agreed term. With £350,000, you are likely looking at multiple vehicles for a fleet. The vans themselves act as security for the lender, which can mean more favourable rates than unsecured borrowing. You will usually pay a deposit — often around 10% to 20% — and then make fixed monthly payments over one to five years. At the end of the term, depending on whether you have chosen hire purchase or a finance lease, you either own the vans outright or have options to upgrade, extend, or return them.

Lenders typically look for businesses that have been trading for at least two years and can demonstrate consistent revenue. Your business should have a solid credit history, and directors may need to pass personal credit checks too. Most providers will want to see your latest filed accounts, bank statements, and sometimes management accounts to assess affordability. Because the vans serve as security, the condition and resale value of the vehicles also matter — lenders want reassurance that the asset holds its worth. Startups and very young businesses may find it harder to secure this level of funding, but specialist asset finance brokers can sometimes help.

Rates vary widely depending on your business profile, the age and type of vans, and the lender's risk appetite. For a well-established business with strong credit, interest rates can be quite competitive. Terms generally range from 12 to 60 months, though some funders may extend to 72 months for larger fleets. You may be offered a fixed or variable rate, and some lenders structure deals with a balloon payment at the end to keep monthly costs lower. It is always worth comparing total cost over the full term rather than focusing solely on the monthly figure. A broker can help you benchmark offers across the market.

Compared to an unsecured business loan, van finance often comes with lower interest rates because the vehicles act as collateral. Against using cash reserves, financing preserves your working capital for other needs like hiring drivers, marketing, or fuel costs. Hire purchase specifically gives you ownership at the end, whereas leasing may offer tax advantages and lower upfront costs but you never own the asset. A secured business loan could also work but may require additional security beyond the vans themselves. The right choice depends on your cash flow, growth plans, and how you account for assets on your balance sheet.

Look for a lender or broker who understands commercial vehicle finance specifically, not just general business lending. Check whether they are FCA-regulated and what their customer reviews say about communication and flexibility. Pay attention to whether they offer fixed or variable rates, early settlement options, and what happens if a van is written off or needs replacing mid-term. Some providers specialise in certain vehicle types or fleet sizes, so find one whose appetite matches your needs. Transparency around fees — arrangement fees, documentation fees, and any balloon payment terms — is essential. A good broker can also help you compare multiple offers at once without multiple credit searches.

Yes, many asset finance lenders are happy to structure a facility that covers a mixture of new and used commercial vans. You might, for example, allocate part of the £350,000 to brand-new long-wheelbase vans and the remainder to quality used models for lighter duties. The lender will assess each vehicle's value and condition as part of the overall security package. Used vans may attract slightly different rates or shorter maximum terms than new ones, reflecting their faster depreciation. It is worth being upfront with the lender about your intended mix so they can structure the agreement appropriately from the outset.