Top 5 Business Car Loan Companies in the UK

Business car loans in the UK let companies and sole traders acquire vehicles through hire purchase, finance lease or contract hire – without paying the full price upfront. Of the five providers we verified for 2026, only Lombard publishes a rate: a 9.7% representative APR worked example. The rest – Novuna, Close Brothers, Bibby and Shawbrook – price each deal individually. Here is how they compare.

Business Car Finance Options in the UK

The three main options for business car finance are: hire purchase (HP) – you pay off the vehicle over 2–5 years and own it at the end; finance lease – you use the vehicle during the term and return it (or sell it on the lender’s behalf); and contract hire (leasing) – a fixed-cost monthly rental with no ownership, typically including maintenance. Hire purchase is most common when the business wants to own the asset; leasing is preferred when tax efficiency and fixed costs matter more than ownership.

The Top 5 Business Car Loan Companies Compared

All five providers below were verified against their own published terms in July 2026. Vehicle finance rates are rarely published – Lombard’s representative example is the only hard figure in this market – so treat the comparison as products, eligibility and speed, and get quotes to compare cost.

Lombard is the UK’s biggest name in asset finance and the only provider here that shows its pricing: a representative example of 9.7% APR (9.33% fixed) on a £26,000 vehicle with a 20% deposit over 48 months – £519.50 a month, £30,201.28 total payable, and no arrangement fee when applying online.

Terms run 12–84 months with optional balloon payments, on new and used vehicles including EVs. Structure depends on who you are: sole traders and small partnerships borrowing up to £25,000 get fixed-rate conditional sale; larger amounts move to variable-rate HP, and limited companies can choose either. The online quote takes 5–10 minutes with an instant credit decision.

Novuna Business Finance (the asset-finance division, formerly Hitachi Capital) funds cars, minibuses, light commercials, HGVs and custom-built vehicles – new and used – through hire purchase and leasing, with deposits and balloon payments structured around your cash cycle. Rates are not published; enquiries go by phone or email rather than an online quote tool.

Eligibility spans Ltd companies, PLCs, LLPs, sole traders and partnerships, but there is a hard gate: three years minimum trading history, the strictest of our five. One naming trap – Novuna Vehicle Solutions is a separate brand offering contract hire (rental) to corporates and PLCs only; it is not a finance product for typical SMEs.

Close Brothers Asset Finance covers hire purchase (typically up to 5 years), finance lease, operating lease and refinancing, with dedicated teams for executive vehicles, taxis, bus and coach, transport and logistics, and vehicle rental businesses. New and second-hand vehicles are both fundable, and there is no published minimum deal size.

Distribution is broker- and introducer-heavy, though a direct phone line exists. Do not confuse this SME division with Close Brothers Motor Finance – the consumer dealer-forecourt brand for personal HP and PCP, which is not a business product.

Bibby’s asset finance arm funds commercial vehicles through hire purchase and finance lease up to £5 million, alongside plant, machinery and IT. You can apply directly by phone or online enquiry rather than being routed through a broker, and published case studies show completions in around two weeks – though that is anecdote, not a guaranteed turnaround.

Shawbrook’s asset finance covers vehicle hire purchase and finance lease from single vehicles to full fleets, with a genuinely fast front end: deals under £250,000 are auto-decisioned to an agreement in principle in under 24 hours. Distribution runs primarily through commercial finance brokers, with a direct channel for business customers also listed.

Business Car Finance Rates UK 2026

Business car finance is priced individually by almost every provider. The one published benchmark is Lombard’s representative example: 9.7% APR on a £26,000 vehicle over 48 months with a 20% deposit. With the Bank of England base rate at 3.75%, strong applicants may beat that; weaker credit profiles or older vehicles will be quoted above it.

Contract hire (leasing) is priced differently – you pay a fixed monthly rental rather than an APR. Typical lease costs for a standard mid-range company car range from £250–£600 per month over 36 months, depending on the vehicle, mileage allowance, and whether servicing and tyres are included. Full maintenance contracts add approximately £50–£150 per month but eliminate unpredictable servicing costs.

Tax Treatment of Business Car Finance

The tax treatment of business car finance depends on the finance type, vehicle CO2 emissions, and whether the vehicle is exclusively for business use. With hire purchase, you can claim capital allowances on the vehicle (enhanced for electric vehicles). With finance lease and contract hire, the monthly rentals are deductible business expenses (subject to a 15% restriction for high-CO2 cars). VAT-registered businesses can reclaim 50% of VAT on car finance payments – rising to 100% for vans and commercial vehicles with no private use.

Company car tax (Benefit in Kind) applies if a director or employee uses the vehicle for personal journeys. BIK is calculated as a percentage of the vehicle’s P11D value, with the percentage determined by CO2 emissions. Zero-emission electric vehicles carry a 4% BIK rate in the 2026/27 tax year, making them significantly more tax-efficient than petrol or diesel equivalents. Always consult your accountant before choosing a finance structure, as the optimal approach varies by tax position, vehicle use, and business type.

Business vs Personal Car Finance: Key Differences

Business car finance is assessed on the company’s financial health (turnover, profit, credit history) rather than personal income, and offers tax advantages not available on personal finance. Business HP and lease payments are deductible against corporation tax; personal car loans are not. Business finance also typically allows higher loan amounts and longer terms. The main advantage of personal finance is simplicity – no corporate liability, no BIK implications – but the tax and cash flow benefits of business finance usually outweigh this for any vehicle used primarily for work.

How to Apply for Business Car Finance

Business car finance can be arranged through: dealerships (often the fastest route for new vehicles, with in-house or panel finance), specialist providers (Lombard, Novuna Business Finance, Bibby), or your existing bank. You’ll need: 2 years of business accounts (3 for Novuna), bank statements, the vehicle details, and a deposit of typically 10-30%. Lombard gives instant online decisions; Shawbrook agreements in principle arrive within 24 hours via a broker.

One name to skip when searching: Oodle Car Finance is a consumer lender only – its own site states it cannot offer finance to SMEs or larger companies and does not fund fleets, so there is no “Oodle Fleet” business product. For equipment beyond vehicles, see our asset finance guide; if you would rather borrow cash and buy privately, compare unsecured business loans first.

Related Business Finance Guides

• Asset Finance UK – hire purchase, finance lease, and equipment finance explained
• Best Business Loans UK 2026 – alternative finance if asset finance doesn’t fit
• Business Loan Costs & Rates 2026 – compare costs across finance types
• Secured Business Loans – using assets to access lower rates
• Unsecured Business Loans – if you need cash to buy privately

Clara Wenslow

Finance & Business Services Editor

Clara analyses SME finance and procurement markets, covering business loans, invoice finance, payroll, and related B2B services. She ensures each comparison and guide is transparent and data-driven.

Reviewed by

Sarah Mitchell

B2B Commerce & Finance Reviewer