Business Car Finance
Flexible Finance for Your Company Cars
Click Away Finance is an FCA-regulated UK broker (FCA number 1041179) arranging business car finance for sole traders, partnerships, LLPs and limited companies. We work with a panel of lenders to structure Hire Purchase (HP), Personal Contract Purchase (PCP), and Business Contract Hire (BCH) around your company’s cash flow, mileage, and tax position.
Whether you’re adding your first pool car or replacing an entire fleet, the right finance structure depends on more than just the monthly payment;
It depends on how the vehicle is treated for VAT, capital allowances, and Benefit-in-Kind tax. We’ll talk you through all of it before you commit to anything.
Vehicle Finance
Click Away Finance can offer finance for all types of motor vehicles, not only car finance. We will help source the right vehicle for you. As well as arranging a competitive finance offer tailored to meet your individual circumstances.
Here’s how it works:
Initial Deposit Generally 10–30% of the price of the vehicle (subject to status). £0 deposit may be possible depending on the vehicle and lender.
Option to Purchase:
Option to Purchase At the end of term, remit the pre-arranged fee (typically £10) to become owner—a simple and guaranteed process
WHY CHOOSE US
Flexible Options
Explore Hire Purchase (HP) and Personal Contract Purchase (PCP) options. We’ll explain the key differences and help you compare finance options suited to your needs and budget.
Credit Friendly
We work with lenders who may consider a range of credit histories. Eligibility is based on your individual circumstances, affordability checks and each lender’s criteria.
Quick Apply
Complete your application online at a time that suits you. Once submitted, we’ll review your details and keep you updated as your application progresses.
Low Rates
Your available rate and monthly payment will depend on your circumstances, the vehicle, deposit, finance term and the lender’s assessment. We’ll help you review the options available.
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Business Car Finance Options: HP, PCP and Business Contract Hire
There are three main routes for financing a vehicle through your business:
Hire Purchase (HP) You spread the cost over fixed monthly payments and own the vehicle outright once the agreement ends. The vehicle sits on your balance sheet as a company asset, and you can typically claim capital allowances on it.
Business Contract Purchase (PCP for business): Lower monthly payments than HP, because you’re only financing the vehicle’s expected depreciation rather than its full value. At the end of the term, you can pay a final balloon payment to own it, hand it back, or move on to a new vehicle.
Business Contract Hire (BCH / leasing): You pay a fixed monthly rental for an agreed term with no option to own the vehicle. This is typically the most cash-flow-friendly option and is treated as an operating cost rather than a capital purchase, which can simplify your accounting.
Which one makes sense depends on whether you want to own the vehicle eventually, how it’ll be used, and how your accountant wants it to sit on your books.
Tax Treatment: VAT, Capital Allowances and Benefit-in-Kind
This is usually the part that actually decides which finance route makes sense for a business.
VAT If your business is VAT-registered, you may be able to reclaim some or all of the VAT depending on whether the vehicle is used exclusively for business purposes and which finance product you choose. Contract Hire often allows VAT reclaim on the rental payments, even with some private use.
Capital allowances. With HP and outright ownership, you may be able to claim capital allowances against your taxable profits, with the rate depending on the vehicle’s CO2 emissions.
Benefit-in-Kind (BIK) If an employee (including a director) has private use of a company car, it usually triggers a BIK tax charge. Electric and low-emission vehicles currently carry a significantly lower BIK rate than petrol or diesel equivalents, which is why a growing number of our business customers are financing electric vehicles specifically for this reason.
We’re brokers, not accountants, so we’d always recommend checking the specifics with your accountant, but we’ll flag the relevant considerations as part of every business application we handle.
Who Can Apply for Business Car Finance?
We arrange business car finance for:
– Sole traders
– Partnerships and LLPs
– Limited companies, including new start-ups, are assessed on a case-by-case basis
– Businesses adding a first vehicle or expanding an existing fleet
Lenders will typically look at your trading history, company accounts (where applicable), and director credit profiles as part of the application.
How Business Car Finance Works With Click Away
1. Tell us about your business, the vehicle or vehicles you need, and your expected annual mileage
2. We match you against our lender panel and outline the VAT and capital allowance treatment for each option
3. You receive a no-obligation quote comparing HP, PCP, and Business Contract Hire
4. Once you choose, we handle the paperwork, dealer arrangement, and e-signing
5. Your dedicated advisor stays with you from quote through to delivery
Frequently Asked Questions
Business car finance is arranged in the company’s name (or as a sole trader), which affects how VAT, capital allowances, and tax are treated, and lenders assess the business’s trading history rather than just an individual’s credit profile.
Yes, though new businesses are typically assessed case by case, often considering the director’s personal credit history alongside the business’s trading position
It depends on whether you want to own the vehicle eventually. HP suits businesses planning to keep the vehicle long-term, while PCP and Business Contract Hire usually offer lower monthly payments and more flexibility at the end of the term.
It depends on the finance product and how the vehicle is used. VAT reclaim is generally more straightforward with Contract Hire than with HP or PCP we’ll explain the position for your specific situation.
Only if there’s private use by an employee or director. Electric and low-emission vehicles currently attract a much lower BIK rate than petrol or diesel cars.
Yes, from a single pool car to a full fleet, we can arrange finance across multiple vehicles under one application process.