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lorry finance, asset finance

Everything you need to know when financing a lorry

Capitalise Apr 19, 2023

Lorries or commercial vehicles are essential for businesses that require goods to be transported. However, purchasing a lorry can be expensive, and not all businesses have the cash to buy one outright. Asset finance can be a great option to help small businesses purchase a lorry. 

Here’s everything you need to know about financing a lorry:


Types of Lorry Finance

There are different asset finance options available to help you purchase a  lorry, and choosing the right one for your business is crucial. The most common types of lorry finance are Hire Purchase (HP), Lease Purchase, and Finance Lease.

Hire Purchase (HP)

This is the most common type of lorry finance. With HP, you pay a deposit (usually 10-20% of the cost) and then make monthly payments for the agreed term, usually between 1 and 5 years. Once you've paid the final instalment, you will own the vehicle outright.

Lease Purchase

Lease Purchase is similar to Hire Purchase, but instead of paying the full cost of the lorry, you pay a lower monthly amount. At the end of the term, you can either pay a final payment to own the lorry, or return it to the finance company.

Finance Lease

With a Finance Lease, you won’t own the lorry at the end of the term. Instead, you will make monthly payments for an agreed period (typically between 2 and 7 years), and return the lorry to the finance company at the end of the period.. You can then choose to lease a new lorry, or buy the one you've been using at its market value.

Benefits of Financing a Lorry 

  • A key advantage of lorry finance is that it allows businesses to spread the cost of the vehicle over an extended period, making it more affordable. This can be especially important for small and medium-sized businesses that may not have the capital to make a large upfront purchase.
  • Lorry finance can also help to manage risk. With predictable monthly payments, you can avoid the risk of unexpected repair costs, which can be a significant burden on cash flow. 
  • Lorry finance can help your businesses to acquire new lorries or upgrade their existing ones, so you can keep up with the latest technology and improve your fleet's safety and efficiency.


Start your application for lorry finance, see what you’re eligible for. 

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