Quick answer — TL;DR

Many of our finance partners can fund farm vehicles used in commercial agriculture. Products commonly used include asset finance, hire purchase, leasing and chattel mortgages. Lenders assess the business and vehicle details (age, use, mileage, insurance). For vehicles and packages from around £10,000 upwards, we can match you to lenders and brokers so you can compare quotes — Start your Free Eligibility Check.

Which farm vehicles are commonly financed?

Below are the vehicle types our partners most commonly fund and a quick note on suitability.

4x4s / pick-ups

Popular for farm work and towing. Easily financed via HP, asset finance or leasing if primarily used for business.

Light commercial vans (panel / crew vans)

Common option for deliveries and on-farm services. Finance and VAT treatment differ from cars — typically easier to reclaim VAT for qualifying businesses.

Refrigerated / temperature‑controlled vehicles

Finance covers chassis and refrigeration fitment; lenders often want details on the refrigeration unit, installation and maintenance history.

Tractors & specialist agricultural vehicles

Specialist equipment may require specialist asset finance or agri-focused lenders. Standard vehicle lenders may decline without specialist underwriting.

ATVs / UTVs / quadbikes

Widely financed where used for commercial/agricultural purposes; insurers and lenders will expect evidence of safe use and appropriate insurance.

Fleets (multiple vehicles)

Fleet finance and contract hire are available for multiple vehicles — often better commercial terms than single-vehicle deals.

Finance types available for farm vehicles

Different products suit different business goals — ownership, tax treatment and cashflow. Below are the most common structures used by our partner lenders and brokers.

Asset finance (including Hire Purchase)

Common for owning the vehicle at the end of term. Deposit often 0–30%, terms typically 2–5 years for vans/4x4s. Monthly payments spread cost; ownership transfers when final payment is made.

Leasing (operating lease / contract hire)

Leasing keeps the vehicle off your balance sheet in many cases and offers regular upgrades. Maintenance and servicing can be bundled. Mileage and condition terms apply.

Chattel mortgage

Finance secured on the asset; useful for VAT-registered businesses that plan to own the vehicle and can claim VAT as appropriate.

Hire Purchase (HP)

Straightforward purchase finance. Popular for used vehicles or when ownership is required. Terms and deposits reflect vehicle age and condition.

Business loans / secured loans

Used where multiple assets are bought together or for mixed purchases (vehicles plus machinery). Offers flexibility but may require security.

Refinance / fleet replacement funding

Available to consolidate or refinance existing vehicle debt, or to finance phased fleet replacement.

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What lenders look for — eligibility & application criteria

Each lender has its own criteria but common assessment areas include:

• Business trading history: many lenders accept limited companies and established SMEs; some accept newer businesses with 6–12 months trading but criteria vary.
• Turnover & profitability: lenders will want to see trading performance and cashflow to service repayments.
• Director/owner credit history: personal credit checks or guarantees may be required, particularly for smaller businesses.
• Vehicle age, mileage and condition: newer assets usually attract better rates and longer terms; older vehicles often get shorter terms and higher rates.
• Usage & safety: evidence of business use, insurance, and for ATVs/UTVs, safety and HSE compliance may be requested.
• Documentation: ID, business bank statements, VAT returns (if applicable), vehicle quotes, invoices and service history for used vehicles.

Tip: prepare clear vehicle specs and intended use details before you enquire — it speeds up matching and quoting.

Typical costs, rates & terms — what to expect

Rates and fees vary by lender, vehicle and business credit profile. Expect:

• Typical terms: 2–5 years for vans and 4x4s; shorter for older used vehicles.
• Deposits: 0–30% depending on product, lender and asset condition.
• Fees: arrangement/admin fees, maintenance package charges (if included), and potential early repayment charges for some products.
• Older assets: may carry higher margins and shorter terms to reflect residual value risk.

Rather than fixed rate promises here, our partners provide competitive, tailored quotes once matched to your profile — Start your Free Eligibility Check.

Tax, VAT and accounting considerations

The tax and VAT treatment of vehicles can affect whether finance is the right choice:

• VAT on vehicles: VAT treatment differs between commercial vehicles (e.g., vans) and passenger cars. VAT-registered businesses may reclaim VAT on qualifying purchases — check with your accountant.
• Capital allowances: Vehicles and agricultural plant & machinery may qualify for capital allowances, but rules differ by asset type.
• Leasing vs buying: Leasing often treats payments as operating costs, while purchase finance affects balance sheet and depreciation.

This is general information only — speak to your accountant for tailored tax advice.

Pros and cons of financing farm vehicles

How UK Business Loans helps

We’re an introducer that connects businesses needing £10,000 and above with lenders and brokers who specialise in vehicle and agricultural finance. Our process is designed to be fast and low-effort for you:

1. Complete a quick enquiry form (less than 2 minutes) — tell us the vehicle type, amount needed and contact details.
2. We match you with partners experienced in farm and vehicle finance.
3. Receive no‑obligation quotes from brokers and lenders so you can compare options and choose what suits your business best.
4. Lender/broker follow-up — if you decide to proceed, they handle the application and documentation directly.

Benefits: speed, specialist matching, free to use, and nationwide coverage. We do not lend money — we put you in touch with providers who can.

Get Started — Free Eligibility Check

For broader industry support and related agri finance solutions, see our agriculture industry page on agriculture business loans.

Real-world examples

Example 1 — Refrigerated van for a dairy cooperative

A dairy co-op needed a refrigerated van to deliver milk to local retailers. They wanted to preserve cash while upgrading to a newer vehicle with warranty. We matched them to an asset finance broker specialising in refrigerated units. The broker arranged a 4‑year HP with maintenance included; the co-op kept cash for operating costs and benefitted from predictable monthly payments.

Example 2 — 4×4 and trailer for livestock transport

An arable and livestock farm required a 4×4 and livestock trailer. The farm chose hire purchase for one vehicle and a short-term lease for the trailer to match its seasonal needs. Consolidating the finance through a single broker simplified repayments and improved cashflow during harvest season.

FAQ

Do you finance second-hand farm vehicles?

Yes. Many partners finance used vehicles. Expect lenders to request MOT, service history and a valuation. Older vehicles often attract higher rates or shorter terms.

Can I finance refrigeration units or conversions?

Yes — bespoke conversions and refrigeration units are commonly financed. Lenders will typically request details of the conversion and any warranty or maintenance agreements.

Will enquiring affect my credit score?

No — submitting our enquiry does not affect your credit score. Lenders carry out credit checks only if you apply directly and give consent.

How long does a decision take?

Many partners provide initial responses within hours during business days. Full underwriting and formal offers depend on documentation and may take several days.

What documents will I need?

Typical documents: ID, business bank statements, vehicle quotations/specs, VAT records if applicable, and service history for used vehicles.

Are ATVs/UTVs covered?

Yes — when used for commercial agricultural purposes, ATVs and UTVs are commonly fundable. Ensure you have suitable insurance and usage documentation.

Can I finance multiple vehicles or an entire fleet?

Yes. Fleet finance and contract hire options are available; they often deliver better rates for multiple assets.

Next steps & final reassurance

If you’re considering finance for farm vehicles of £10,000 or more, the fastest way to explore options is to complete our short enquiry. We’ll match your request to lenders and brokers who understand agriculture and vehicle finance — you’ll receive no-obligation quotes so you can compare and decide.

Free Eligibility Check — Get Quote Now

We are an introducer — not a lender. We connect businesses with lenders and brokers who may contact you with tailored finance options. Information on this page is guidance only and not tax, legal or regulated financial advice. Eligibility, terms and rates are subject to lender checks.

UK Business Loans is an introducer. We do not provide regulated financial advice or lend money. Our partners may carry out credit and affordability checks. Always seek tax or legal advice from a qualified advisor for VAT and capital allowance queries.

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