Quick answer

Yes. Most logistics companies can use business equipment finance to fund vans, trailers and warehouse technology. Typical products are hire purchase (HP), finance lease, operating lease / contract hire, chattel mortgage, vendor finance and sale & leaseback. Which option is best depends on whether you want to own the asset, preserve cash flow, benefit from tax reliefs, or refresh kit regularly. If your business needs funding from about £10,000 upwards, start with a Free Eligibility Check to see what options are available.

Why equipment finance suits logistics businesses

Logistics firms face ongoing capital demands: vehicle replacement, fleet scaling, stricter emissions rules and investment in warehouse automation. Equipment finance is built for these needs.

• Preserves working capital — spread the cost instead of using cash reserves.
• Keeps borrowing lines free — an alternative to overdrafts or property security.
• Enables faster upgrades — replace older vans to meet emissions/insurance requirements.
• Matches term to asset life — choose a finance term aligned to useful life and residual value.
• Flexible structures — from ownership (HP) to fully managed fleets (contract hire).

Want to see tailored options for your fleet or warehouse upgrade? Get Quote Now.

Types of equipment finance explained

Hire Purchase (HP)

HP is a common choice for vans and trucks. You pay an initial deposit (sometimes negotiable) and monthly repayments; ownership transfers after the final payment. Good if you want to own the vehicles and budget for predictable repayments.

Finance Lease / Operating Lease

With a finance lease you effectively pay for the asset’s economic use; ownership usually remains with the lender. Operating leases are often used when you want lower monthly costs and the ability to replace assets at term end — ideal for trailers or short-life technology.

Contract Hire / Full-Service Lease

Contract hire bundles financing with maintenance, servicing and sometimes fuel management. It’s popular for larger fleets where outsourcing fleet management reduces internal overhead.

Chattel Mortgage

A secured loan where the asset acts as security; commonly used for high-value vehicles and specialist trailers where you want to own from the outset.

Asset Refinance / Sale & Leaseback

If you already own vans, trailers or warehouse equipment, you can release cash by selling to a lender and leasing it back — useful to improve liquidity without disrupting operations.

Vendor or OEM finance

Manufacturers often provide finance packages for new racking, conveyors, WMS or automated handling systems. These can include installation and warranty support.

For a deeper guide on equipment finance choices, see our article on equipment finance.

Compare options — Free Eligibility Check

Can vans, trailers and warehouse technology be funded?

Vans

Yes. New and used vans are routinely financed. Typical term lengths are 2–5 years for light vans; larger commercial vehicles may have longer terms. Hire purchase and contract hire are common—HP if you want ownership, contract hire if you prefer fixed costs and outsourcing of maintenance.

Trailers

Trailers often have long useful lives and can be financed via HP, finance leases or chattel mortgage. For multi-trailer fleet buys, lenders will consider fleet size, maintenance history and expected utilisation.

Warehouse technology

Racking, conveyors, sortation systems, forklifts, WMS hardware and robotics can all be financed. Vendor finance or asset finance is used for complex installations; be aware that costs may include software licences, integration and training. Lenders typically treat software differently from plant & machinery, so disclose full costs in your enquiry.

Tip: match the finance term to the asset’s useful life and factor servicing and downtime into the decision.

Tax, VAT and accounting considerations

Tax rules affect whether assets are capitalised and how VAT is reclaimed. Some high-level points:

• VAT: For most commercial assets VAT is recoverable, but there are special rules for vans with private use — check HMRC guidance.
• Capital allowances: Plant and machinery allowances can apply to warehouse tech; low-emission vehicle allowances may be available for qualifying vans.
• Lease accounting: Operating leases and finance leases have different balance sheet treatments under UK GAAP/IFRS — discuss with your accountant.

This is general information only — always consult your accountant or tax adviser about the specifics.

What lenders look for — eligibility & documentation

Lenders and brokers assess:

• Company structure and trading history (limited companies, LLPs, established SMEs).
• Turnover, profitability and bank transaction history.
• Asset details: age, mileage, specifications and supplier quotes.
• Director credit history and any existing secured borrowings.

Typical documents required: recent accounts or management accounts, 3–6 months of business bank statements, proof of identity for directors, supplier quotes, and VAT registration details (if relevant).

Enquiries via UK Business Loans do not affect your credit score. If you want an initial tailored response, Get Quote Now.

Typical costs, rates and terms

Rates depend on product, term, asset age and your business profile. Expect:

• Shorter terms and new assets = lower rates; older or used assets = higher rates.
• HP usually has higher monthly payments than operating leases if you plan to own; leases can have balloon or residual payments to reduce monthly cost.
• Full-service leases include maintenance and may be marginally more expensive but reduce operational risk.

Illustrative example

Example (illustrative only): 1 new van at £25,000 on a 4‑year HP with 10% deposit might cost c. £500–£700 per month depending on rate and term. A 3‑year operating lease could be lower monthly but you won’t own the van at term end. Always get personalised quotes — Free Eligibility Check.

Pros & cons checklist

Not sure which option fits your business? Get Started with a Free Eligibility Check.

How UK Business Loans helps

We’re an introducer. We don’t lend — we connect logistics businesses (seeking £10,000+) to specialist finance brokers and lenders who can provide tailored quotes. Our process is quick:

1. Complete a short enquiry (2 minutes) — no obligation.
2. We match your request to lenders/brokers that specialise in fleet and warehouse finance.
3. Receive calls or emails with quotes and next steps so you can compare offers.
4. Choose the provider and proceed directly with them.

Start now — Free Eligibility Check.

Real-world examples

Courier fleet upgrade

A regional courier operator needed 5 low-emission vans to replace older vehicles and pass nearby LEZ rules. They used HP for 3 vans and a contract hire solution for 2 high-mileage vans so maintenance was covered. Funding arranged in two weeks after matching with a specialist broker.

Warehouse automation

A 3PL invested in conveyors, racking and a warehouse management terminal system. Vendor finance covered installation; additional asset refinance released cash from older owned forklifts to fund the project. The company kept operations running while upgrading capacity.

Want a quote for a similar project? Get Quote Now.

Frequently asked questions

Can I finance second‑hand vans and used trailers?

Yes. Many lenders finance used vehicles though terms may be shorter and rates slightly higher depending on age and mileage. Provide full vehicle details when enquiring.

Do I need a deposit?

Some lenders ask for a deposit (0–25% typical). Negotiation through a broker can sometimes reduce deposit requirements.

Will applying affect my company credit score?

Submitting an enquiry via UK Business Loans does not affect your credit. Lenders may carry out credit checks later during underwriting.

Can new or growing businesses get equipment finance?

Yes. Specialist lenders and brokers work with newer businesses, though requirements vary. We’ll match you to suitable partners based on your profile.

How quickly can I get funding?

Indicative quotes can arrive within hours once matched. Full approval and funding usually take days to a few weeks depending on documentation and valuations.

Is VAT reclaimable on vans and warehouse equipment?

Possibly — VAT rules depend on commercial use and equipment type. Check HMRC guidance or ask your accountant for specific advice.

Get started

Ready to fund vans, trailers or warehouse technology? Complete our short enquiry and we’ll match your business to lenders and brokers who can deliver quotes. It’s free, quick and has no obligation.

Get Quote Now — Free Eligibility Check

Important: UK Business Loans is an introducer connecting businesses to lenders and brokers. We do not provide loans or regulated financial advice. All finance is subject to eligibility and lender terms.