Refinance HGVs, Vans & Fleets — Can Logistics & Transport Firms Refinance Their Vehicles?

Short summary: Yes — most logistics and transport businesses can refinance HGVs, vans or an entire fleet. Options include settling hire purchase (HP) or finance leases, asset-secured loans, sale‑and‑leaseback and bespoke fleet facilities. Eligibility and savings depend on vehicle age and condition, existing contract terms (including early settlement charges), outstanding balances and the operator’s cash flow and credit profile. Complete a short enquiry for a free eligibility check and tailored lender/broker matches.

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Quick answer — can transport firms refinance vehicles?

Yes. Transport and logistics businesses commonly refinance HGVs, vans and whole fleets. The most suitable route depends on:

• how the vehicles are currently financed (HP, lease, unsecured loan);
• vehicle age, mileage and residual market value;
• outstanding balances and any early settlement fees;
• the business’s turnover, cash flow and directors’ credit history.

For a quick assessment and tailored lender/broker matches, submit a short enquiry — it’s a free eligibility check and not a loan application: Get Started — Free Eligibility Check.

Why companies refinance fleets (common reasons)

• Improve working capital and cash flow
• Reduce monthly payments by extending terms or lowering rates
• Consolidate multiple HP/loan arrangements into one facility
• Replace expensive finance with more competitive borrowing
• Free capital for growth or depot investment via sale‑and‑leaseback
• Refresh fleet with newer, cleaner vehicles without large upfront spend

Typical refinance options for HGVs, vans & fleets

1. Refinance existing Hire Purchase (HP) or finance lease

Lenders can often settle outstanding HP balances or novate finance leases. A new lender pays out the existing finance and replaces it with a new facility on updated terms.

2. Asset-secured refinance (loan against vehicle value)

Secured business loans use vehicles as collateral. These suit fleets with reasonable residual value and can offer competitive rates compared with unsecured borrowing for the same risk profile.

3. Sale‑and‑leaseback

Operators sell vehicles to a specialist and lease them back (operating or finance lease). This releases capital while you keep using the assets — useful for large, older fleets or when urgent cash is required.

4. Bespoke fleet refinancing packages

Specialist lenders and brokers provide tailored facilities for multi‑vehicle operators: revolving fleet lines, asset-based lending, or a single consolidated loan to replace many arrangements.

5. Working capital or invoice finance alongside vehicle refinancing

If liquidity is the priority, invoice finance or an overdraft can release cash tied up in receivables while vehicle finance is handled separately.

Who can refinance — eligibility checklist

Typical lender preferences include:

• Business type: limited companies and LLPs commonly — we do not arrange sole trader/profession-only loans on this page.
• Minimum trading history: many lenders want 6–24 months; longer trading history helps for larger facilities.
• Vehicle age: most lenders prefer newer commercial vehicles, but some will accept older HGVs subject to higher rates or alternative structures like sale‑and‑leaseback.
• Outstanding finance: lenders must be able to settle or novate existing agreements; check early settlement charges.
• Credit profile: company and director credit histories influence pricing and eligibility.
• Turnover and cash flow: lenders assess ability to service repayments.
• Minimum loan size: we commonly arrange facilities from around £10,000 and up.

What lenders check (key underwriting factors)

• Vehicle type, mileage, maintenance history and condition
• Existing finance product terms and any settlement fees
• Market and residual value for the make/model
• Business cash flow, turnover and profit/loss trends
• Existing liabilities and director/company credit reports
• Projected usage and contract wins that show future cashflow

Typical terms, costs and what to expect

• Loan term: commonly 12 months up to 7+ years depending on vehicle life and lender.
• Rates/APRs: vary by lender, vehicle age and business risk — secured asset finance is usually cheaper than unsecured options.
• LTV: typically 60–90% of market value; lower for older vehicles.
• Fees: valuation, arrangement, settlement/novation and possibly maintenance re‑instatement fees. Always request a full breakdown.
• Security: fixed charges over vehicles; for large facilities lenders may take a company debenture.

Pros and cons of refinancing fleet vehicles

Pros

• Improved cash flow and single monthly payment
• Potentially lower finance costs
• Administrative simplicity from consolidating agreements
• Release of capital through sale‑and‑leaseback

Cons

• Early settlement penalties can offset savings — calculate net benefit
• Older vehicles may attract higher rates or be ineligible
• Extending term can increase total interest paid
• Some beneficial original terms (maintenance, spare vehicle clauses) may be lost

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Step-by-step refinance process (what to expect)

1. Initial enquiry: complete our short form with vehicle types, outstanding finance and business turnover.
2. Matching: we match you to specialist brokers and lenders experienced in transport and fleet finance.
3. Indicative quotes: brokers request valuations and provide indicative terms, often within hours.
4. Formal application: lender undertakes underwriting, may require inspections and credit checks.
5. Settlement or novation: new lender settles current finance or novates the lease.
6. New facility starts: new payments and terms take effect.

Documents you’ll typically need

• Vehicle list: registration, age, mileage and condition records
• Copies of current finance agreements and settlement figures
• Business bank statements (usually 3–6 months)
• Company accounts or management accounts
• Director IDs (passport/driving licence)
• Maintenance and service history (especially for HGVs)

Common obstacles and how to overcome them

• Early settlement penalties: ask brokers to model net savings after fees.
• Older vehicles in fleet: sale‑and‑leaseback or short‑term bridging may be better.
• Poor credit: specialist lenders exist but pricing will reflect risk — brokers can find suitable matches.
• Multiple lenders on different vehicles: consolidation via a bespoke fleet facility is often recommended.

Alternatives to direct vehicle refinancing

• Invoice finance to release cash tied up in receivables
• Asset refinance of other equipment or property
• Business loan or overdraft to consolidate short-term liabilities
• Switching lease types (finance lease → operating lease) to improve cashflow

Example scenarios

Case A — Small courier with 8 vans

Replaced multiple HP agreements with a single asset-secured refinance. Result: simplified admin and marginally lower monthly cost while retaining ownership.

Case B — Regional haulier with older HGVs

Chose sale‑and‑leaseback for several HGVs to free capital for a depot upgrade. Lease terms were structured to match cashflow seasonality.

Free Eligibility Check — Get a tailored quote

Why use UK Business Loans to refinance your fleet?

• Fast match to specialist fleet brokers and lenders who understand commercial vehicle finance.
• Free, no-obligation enquiry — your enquiry is used only to match you with suitable providers and is not a loan application.
• We introduce you to lenders/brokers who can provide formal offers — UK Business Loans itself does not lend or provide regulated financial advice.
• We commonly arrange facilities from £10,000 upwards and work with operators across the UK.

Get Quote Now — Free Eligibility Check

FAQs

Can I refinance if I still owe money on my current HP/lease?

Yes. Many lenders will settle outstanding HP balances and replace them with a new facility. Always check the early settlement figures and model the net benefit.

Will making an enquiry affect my credit score?

No. Completing an enquiry on our site is only a way for us to match you to brokers and lenders — it doesn’t affect your credit score. Lenders may carry out credit checks later as part of a formal application.

Can start-ups or very new companies refinance a fleet?

Possibly, but most lenders prefer established trading histories. Newer businesses may still access asset finance or sale‑and‑leaseback from specialist providers, often at higher rates.

How long does refinancing take?

Indicative quotes can arrive within hours. Full refinancing (underwriting, valuations and settlement) typically ranges from a few days to several weeks depending on complexity.

What if early settlement fees exceed possible savings?

Ask brokers to produce a clear net-cost comparison. In some cases the benefits (cash release, administrative simplification) still justify refinancing even if monthly savings are small.

Related resources

• Vehicle finance overview
• Asset finance explained
• Invoice finance for transport
• Contact UK Business Loans

For more detail on restructuring existing vehicle agreements and the differences between options, see our guide to refinance-loans.

Final notes & transparency

UK Business Loans is an introducer that connects businesses to specialist brokers and lenders. We do not lend money or provide regulated financial advice. The enquiry form is not a loan application — it simply gathers information so we can match you with lenders/brokers who can provide offers tailored to your business. When you submit an enquiry we will only share your details with relevant partners who can help — you remain under no obligation to accept any offer.

Need a quick refinance quote for your HGVs, vans or fleet? Complete our short form and we’ll match you to specialist brokers and lenders for a free, no‑obligation eligibility check — often with responses within hours. Get Started — Free Eligibility Check

Legal / disclosure: UK Business Loans is an introducer and does not provide regulated financial advice. All lending decisions, contracts and formal terms are managed by the lenders and brokers we introduce. Review any documents carefully and seek independent regulated advice if required.

1. Can I refinance HGVs, vans or an entire fleet?
Yes — most transport firms can refinance individual HGVs, vans or whole fleets via HP/lease novation, asset‑secured loans, sale‑and‑leaseback or bespoke fleet facilities.

2. Will submitting an enquiry with UK Business Loans affect my credit score?
No — completing our free enquiry simply matches you with specialist brokers and lenders and does not perform a credit check or affect your credit score.

3. How quickly can I get a refinance quote and complete refinancing?
You can often receive indicative quotes within hours, while full underwriting, valuations and settlement usually take from a few days up to several weeks depending on complexity.

4. What eligibility criteria do lenders typically use for fleet refinancing?
Lenders usually assess vehicle age, mileage and condition, outstanding finance and settlement figures, company turnover and cashflow, and director/company credit history.

5. Can I refinance vehicles that are still on hire purchase or finance lease?
Yes — many lenders will settle outstanding HP or novate finance leases, though you should model net savings after any early settlement charges.

6. What refinance options release capital quickly for urgent cash needs?
Sale‑and‑leaseback and asset‑secured bridging facilities are commonly used to quickly release capital while allowing continued use of vehicles.

7. How much can I borrow and what minimum facility sizes do you arrange?
We commonly arrange facilities from around £10,000 upwards, with loan size and LTV depending on vehicle values and lender criteria.

8. What costs and fees should I expect when refinancing a fleet?
Expect arrangement and valuation fees, possible settlement/novation charges, interest rate differences, and potential security such as fixed charges or company debentures.

9. Are there alternatives to directly refinancing vehicles to improve cashflow?
Yes — invoice finance, overdrafts, property or equipment refinancing, or switching lease types can all be viable alternatives to vehicle refinancing.

10. What documents will brokers and lenders typically ask for during the refinance process?
You’ll usually need a vehicle list (registration, age, mileage), current finance agreements and settlement figures, business bank statements, company accounts or management accounts, director IDs and maintenance/service histories.