Vehicle finance for business — fees, who pays and how UK Business Loans is compensated

Find vans, cars or fleet finance — understand lender & broker fees and get a free eligibility check from UK Business Loans.

Get Quote Now — Free Eligibility Check

Takes 2 minutes. No obligation. We don’t lend — we introduce your business to lenders and brokers who can offer vehicle & commercial finance.

The quick answer

Yes — lenders commonly charge fees (arrangement, documentation, valuations, early settlement, admin, etc.). Brokers can be paid in two main ways: commission paid by lenders or a direct fee charged to your business. UK Business Loans is an introducer: our matching service is free for businesses. We typically receive a fee from the lender or broker we introduce you to when you complete our enquiry form; any fees the lender or broker charges you are agreed directly with them and are not additional charges from us. Get a Free Eligibility Check.

How business vehicle finance normally works

Business vehicle finance can be arranged via lenders directly or through brokers who search the market on your behalf. Common products include Hire Purchase (HP), finance leases, operating leases/contract hire, and fleet funding or asset finance for specialist vehicles. Different products change who pays fees and when — HP often has arrangement fees and results in ownership at the end; leasing has excess mileage and damage charges and usually no ownership unless there’s a purchase option.

Typical process: you submit an enquiry → lenders/brokers provide quotes and disclose fees → you choose a product → application, checks and documentation → drawdown and delivery. For tailored vehicle funding you may also want specialist vehicle finance; compare options before accepting an offer. For more about vehicle options see our vehicle finance pages such as vehicle finance (/vehicle-finance).

Do lenders charge businesses fees?

Yes — many lenders charge one or more fees. Below are the most common lender fees and what they cover:

• Arrangement / facility fee: one-off fee for setting up the loan or finance facility. Can be paid upfront or added to the finance amount. Typical range varies widely by lender and deal size.
• Documentation / administration fee: covers contract paperwork, legal checks and administration.
• Valuation / inspection fees: for specialized vehicles (e.g., HGVs, refrigerated units) to confirm condition and value.
• Early settlement / redemption fee: charged if you pay off a finance agreement early — reflects the lender’s lost interest and admin.
• Late payment / default fees & higher interest: penalty charges for missed payments and additional interest on arrears.
• Excess mileage & damage charges (leases): applied at lease end if agreed limits are exceeded or vehicle returned in poor condition.
• Delivery/modification charges: if the vehicle requires delivery, registration or factory-fit modifications arranged by the lender.

Whether fees are paid upfront or rolled into the loan depends on the lender and the product. Lenders should disclose fees on quotes and in the terms; always ask for a written breakdown. Get Quote Now.

Do brokers charge businesses fees?

Brokers operate under two common payment models:

• Commission-only model: the broker is paid a commission by the lender when a deal completes. In this model the broker usually does not charge the business directly—make sure this is disclosed in writing.
• Broker fee (client-paid): some brokers charge an explicit fee for their services. This might be an upfront fee, a completion fee, or an ongoing management fee. The broker should confirm whether their fee is refundable if the application is declined and whether it can be added to the finance.

Other models include a success/completion fee (payable only on completion) and subscription or ongoing admin fees for managed facilities. Businesses should always ask brokers to provide written terms that clearly show:

• Who pays the broker (you or the lender).
• The exact fee amounts and when they will be charged.
• Whether fees are refundable if the finance doesn’t complete.

If in doubt, request a written “how we are paid” statement from the broker before proceeding. Start your Free Eligibility Check.

How UK Business Loans is compensated

Clear disclosure: UK Business Loans is not a lender or financial adviser. We are an introducer that connects businesses with UK-based brokers and lenders. Our service is free for businesses. We typically receive a fee from brokers and/or lenders when a business completes our Enquiry Form and a partner chooses to contact that business. Any fees charged by the lender or broker to your business (arrangement fees, broker fees, early settlement fees, etc.) are agreed directly between you and the lender/broker. We do not add extra charges on top of those fees.

How this works in practice: when you complete our short enquiry, we match your requirements with suitable partners. Partners pay us for qualified introductions; that payment is independent of any fee a partner may charge you. Our role is to connect — final terms, fees and contracts are agreed between you and the lender or broker you choose to work with. Get Started — Free Eligibility Check.

What this means for your business

• Using UK Business Loans costs you nothing — you won’t pay us to be matched with lenders or brokers.
• You may receive contact from lenders or brokers who will explain any fees they charge; confirm these in writing before you proceed.
• Because we are paid by partners for leads, we can introduce you quickly to specialist providers without adding hidden mark-ups.
• We do not provide regulated financial advice — brokers or lenders you speak with will advise on product suitability and may be regulated.

Ready to compare options? Free Eligibility Check — takes around 2 minutes and is no obligation.

Fee checklist — what to look for in a quote

• Arrangement fee: amount and whether it’s added to the finance or payable upfront.
• Broker fee: who pays it, when payable and whether it’s refundable if the deal fails.
• Monthly admin fee: ongoing charges during the lifetime of the agreement.
• Excess mileage / damage charges: for leases — confirm rates per mile and wear & tear standards.
• Early settlement figure: ask for the exact settlement figure and any admin fee to close the facility.
• Interest / implied rate: clear breakdown of interest and total amount payable over the term.
• VAT treatment: check if VAT applies to the payment profile for your business use-case.

Ask for a single “total amount payable” number so you can compare like-for-like quotes from different providers. Get Quote Now.

How to avoid unexpected fees — questions to ask

Before you sign anything, ask these practical questions and get answers in writing:

• What is the total amount payable over the term, including all fees?
• Is the arrangement fee added to the finance or paid upfront?
• Does the broker receive commission from the lender, or will I be charged a broker fee?
• What happens if I repay early — what’s the settlement figure and admin cost?
• For leases: what are the excess mileage and damage charge rates?
• Will applying or enquiring affect my business credit file?

Keep all quotes and fee disclosures for your records and compare total costs rather than only monthly payments. Start your Free Eligibility Check.

Trust, regulation & privacy

UK Business Loans does not lend and acts only as an introducer. We do not provide regulated financial advice. We match businesses with lenders and brokers who can advise on product suitability. We share your details only with selected partners relevant to your enquiry — see our Privacy Policy for full details.

When evaluating offers, request clear written terms and check the credentials of the lender or broker before signing. If a provider promises unusually low fees or raises pressure tactics, ask for time to review and seek independent advice.

Frequently asked questions

Will I have to pay UK Business Loans anything?

No — our service is free for businesses. We are paid by partners for qualified enquiries.

Do lenders always charge an arrangement fee?

No. Some lenders include set-up costs in the rate; others show a separate arrangement fee. It depends on the product and provider.

Do brokers always charge businesses directly?

Many brokers are paid by lenders (commission). Some charge direct fees—always ask for written disclosure and the broker’s terms.

Can I compare multiple quotes?

Yes. Our service helps you get multiple offers so you can compare total cost, fees and suitability before deciding.

Will enquiring affect my business credit score?

Submitting an enquiry via our site does not affect your credit score. Lenders may perform credit checks later if you progress an application.

What fees should I expect for leasing compared with hire purchase?

Leasing typically has excess mileage and damage fees at return; HP may have arrangement or documentation fees but results in ownership when paid off. Compare total cost and ownership outcome.

Are all lenders/brokers regulated?

Not all providers operate under the same regulatory status. Confirm any regulatory or professional credentials directly with the lender or broker you choose.

How quickly will a lender or broker contact me?

Partners typically contact businesses within hours of a completed enquiry during business hours — sometimes sooner.

Can fees be added to the finance amount?

Often yes — arrangement or broker fees can sometimes be added to the finance. This increases the capital and interest payable; ask for a breakdown of the effect on monthly payments and total cost.

What is the minimum facility size?

UK Business Loans generally handles introductions for business finance from around £10,000 upwards for vehicle and commercial finance. For tailored advice, submit an enquiry and we’ll match you to the best partners. Free Eligibility Check.

Ready for a free quote?

Complete our short enquiry and we’ll match your business to lenders and brokers who can provide tailored vehicle or commercial finance options. No cost, no obligation — just a quick way to compare offers and understand fees.

Get Quote Now — Free Eligibility Check

1. Is UK Business Loans free to use to find a business loan or vehicle finance?
Yes — our introducer service and free eligibility check are free for businesses; we typically receive a referral fee from lenders or brokers when you complete the enquiry form.

2. Will submitting an enquiry through UK Business Loans affect my business credit score?
No — completing our enquiry form does not affect your credit score, although lenders may perform credit checks later if you progress an application.

3. How quickly will lenders or brokers contact me after I submit an enquiry?
Partners typically contact businesses within hours during business hours after a completed enquiry.

4. What types of vehicle finance can you help me find for my business?
We can match you with lenders and brokers offering Hire Purchase, finance leases, operating leases/contract hire, fleet funding and specialist vehicle/asset finance.

5. Do lenders usually charge arrangement, documentation or valuation fees for vehicle finance?
Many lenders charge arrangement, documentation or valuation fees, though some include set-up costs within the rate — always ask for a written breakdown.

6. Will a broker charge my business directly or are brokers usually paid by lenders?
Some brokers are commission-only and paid by lenders, while others charge a client-facing broker fee — you should get written disclosure of who pays and the exact fee.

7. Can arrangement or broker fees be added to the finance amount?
Often yes — arrangement or broker fees can be rolled into the finance, which increases the capital and total interest payable, so request a clear cost illustration.

8. How do I compare quotes to avoid hidden fees when looking for a business loan UK?
Compare the total amount payable, all fees (arrangement, admin, early settlement, excess mileage/damage), interest and VAT treatment rather than only the monthly payment.

9. Is UK Business Loans regulated and do you give regulated financial advice?
No — UK Business Loans is not a lender or regulated adviser; we act as an introducer connecting you to FCA-regulated brokers and lenders who can give regulated advice.

10. Is the enquiry form on UK Business Loans an application or a commitment to proceed?
No — the enquiry form is only used to match your business with suitable lenders or brokers and does not constitute a loan application or obligation to proceed.