Buy the van, keep the cash in the business.
Vehicles, machinery, tools and technology, paid for over their working life instead of in one hit — with the whole-life cost set out before you sign.
A £40,000 machine does not have to cost £40,000 this month
Paying cash for equipment is the most expensive kind of cheap. The money leaves in one go, the working capital goes with it, and the next opportunity arrives while the account is still recovering.
What this meansPaying for equipment or vehicles over time instead of all at once. The item itself usually acts as the security, so you may not need to put up anything else. matches the cost to the working life of the thing you are buying. The van earns while it is paid for, the payment is a known monthly figure you can price into a job, and the cash stays where it can be useful.
If it works for a living, it can usually be financed
Assets that earn their keep are the easiest things to fund, because the item itself provides the security.
Typically a good fit when
- Vans, trucks, tippers, taxis and company cars — new or used
- Manufacturing equipment, excavators, forklifts, catering and workshop machinery
- IT hardware, EPOS systems, and shop or salon fit-outs
- Equipment you already own outright, refinanced to release cash
- A purchase that would otherwise empty the account in one go
Ownership, payments and the sting in the tail
Three things decide which agreement suits you: whether you want to own the item, how predictable you need the monthly payment to be, and what happens at the end of the term.
Watch for a What this meansA larger final payment at the end of an agreement. It keeps monthly payments low, but you need a plan for how the final sum gets paid. — it keeps monthly costs low but leaves a large sum due at the end. And always ask whether a quoted rate is a What this meansInterest charged on the full original amount for the whole term, even as you pay it down. A 5% flat rate is roughly twice as expensive as a 5% rate charged on the reducing balance — always ask which one you are being quoted. or charged on the reducing balance, because the same number means very different money.
| Agreement | You end up | Suits |
|---|---|---|
| What this meansYou pay in instalments and own the item outright once the last payment is made. | Owning the asset outright | Long-life kit you will still be using in ten years |
| Finance lease | Handing it back, or selling it as the lender’s agent | Equipment that dates, or when cash flow matters more than ownership |
| Contract hire | Handing it back with nothing to sell | Vehicles, where maintenance and disposal are someone else’s problem |
| Refinancing | Owning it still, with cash released | Freeing up money tied into equipment you already own |
Questions we are asked most
What is the difference between hire purchase and leasing?
With What this meansYou pay in instalments and own the item outright once the last payment is made. you are buying the item in instalments and you own it outright at the end. With a What this meansYou pay to use the item for an agreed period and hand it back at the end, unless the agreement offers a purchase option. you are paying to use it for an agreed period and hand it back, unless there is a purchase option.
Ownership is not automatically better. If the equipment dates quickly, leasing and upgrading can cost less over ten years than owning something obsolete. If it will still be earning in a decade, buying usually wins.
Can I finance a used vehicle or second-hand machinery?
Usually, yes. Plenty of lenders fund used vans, trucks, plant and machinery — age and expected working life matter more than whether it is new. Very old or highly specialised items narrow the field and can carry a higher rate.
Can I release cash from equipment I already own?
Often you can. A lender advances a lump sum against machinery or vehicles you own outright, and you repay over an agreed term. It can fund growth without new borrowing against your home — though the asset does become security.
Know what the kit will really cost before you buy it.
Send us the quote or the registration and we will come back with the options.
Or email info@nemekfinance.co.uk · Call 07483 159369
No obligation, no credit check to talk, and a straight answer if finance is not the right move.