Asset Finance for Fleet Vehicles and Logistics

Replacing or expanding a commercial fleet is capital intensive, and paying cash upfront ties up money that logistics and distribution businesses need for fuel, wages and day to day operations. Asset finance spreads the cost of vans, trucks, trailers and specialist vehicles over time, so you can upgrade the fleet without draining working capital. Sadi's Commercial Finance is an NACFB and FIBA registered commercial finance brokerage and arranges fleet finance across a panel of lenders that specialise in commercial vehicles.

Who it is for: logistics, distribution, haulage, courier and delivery businesses replacing ageing vehicles, expanding capacity to service a new contract, or investing in specialist vehicles such as refrigerated transport, tippers or recovery units.

Who we help

Our fleet clients range from an owner driver adding a second van to regional hauliers running fifty vehicles. What they have in common is that the vehicle is not a nice to have, it is the thing that earns the revenue, so the finance has to be arranged around a delivery date rather than the other way round.

We also work with businesses that are not in logistics but run vehicles as part of the operation: construction firms with tippers and plant transport, facilities and maintenance companies with fitted out vans, and mobile service businesses.

What we arrange for fleet operators

Hire purchase, where you pay a deposit and fixed monthly instalments and own the vehicle outright at the end of the term
Finance lease, where you rent the vehicle for an agreed term with the option to continue, sell or return it
Contract hire and operating lease, where the vehicle goes back at the end and residual value risk sits with the lender
Refinance of owned vehicles, releasing capital tied up in a fleet you already own while you keep using it
Sale and leaseback, a way to turn owned assets into working capital in one transaction
Block or portfolio facilities for operators adding vehicles regularly, so each new unit does not need a fresh application

Why fleet operators use asset finance

Preserves cash for fuel, staff, insurance and running costs
Fixed, predictable monthly payments make contract pricing and tendering easier
Newer, more efficient vehicles cut fuel, maintenance and downtime costs
Lets you scale up quickly when a contract is won rather than turning work away
Refinancing owned vehicles releases capital back into the business
The asset itself is the primary security, so it is often available where an unsecured loan is not

How the process works

Tell us the vehicles and the timeline. Make, model, age, cost and when you need them on the road. We respond the same working day.
Choose the structure. We work through whether hire purchase, lease or refinance fits your ownership plans, cash flow and accounting treatment.
Package the case. Accounts, bank statements, details of existing agreements and, where relevant, the contract the vehicles will service.
Approach specialist lenders. We go to funders who understand commercial vehicle values and your sector rather than submitting everywhere.
Compare offers on total cost. Deposit, monthly payment, term, balloon or residual and any option to purchase fee, side by side.
Pay out to the supplier. The lender settles with the dealer or vendor and the vehicles go into service.

What lenders assess

Vehicle asset finance is asset led, so the lender starts with the vehicle: its type, age, mileage, specification and how well it holds value. Then they look at your trading history and accounts, existing finance commitments across the fleet, the directors' experience, and whether there is contracted work behind the vehicles. A signed contract that the fleet will service is one of the strongest supporting pieces of evidence you can provide.

Specialist and heavily bespoke vehicles, such as refrigerated bodies or specialist bodywork, are fundable but need a lender that understands the resale market for them. Age limits matter too: many funders cap the vehicle's age at the end of the agreement rather than at the start, which is why a ten year old truck on a five year term is difficult.

What it costs

Pricing is driven by the asset, the deposit, the term and the strength of the business. Deposits are commonly around 10 to 20% for hire purchase, though nil deposit deals exist for strong covenants. Terms usually run from two to five years, sometimes longer on heavy goods vehicles. There is normally a documentation fee and, on hire purchase, an option to purchase fee at the end.

Because the vehicle is the security, asset finance is usually cheaper than unsecured borrowing for the same purpose. Our broker fee is disclosed in writing before you commit, and we present the total cost of each offer, not just the monthly figure.

How long it takes

Straightforward cases often complete within one to two weeks once documentation and vehicle details are confirmed with the lender, and simple single vehicle deals for an established business can be faster. Larger fleet facilities, refinance and sale and leaseback take longer because the existing assets need to be verified and any outstanding finance settled.

Case study

A regional logistics firm specialising in temperature-controlled transport secured an £850,000 hire purchase facility to upgrade its fleet with refrigerated delivery vehicles. The new fleet reduced fuel and maintenance costs and helped the client win two new contracts, boosting turnover by 22% within six months, while preserving working capital throughout.

Why use a broker rather than dealer finance

Dealer finance is convenient but it is one funder's product, priced at the point you are least likely to shop around. Fleet finance depends heavily on the lender understanding your sector, because resale values, usage patterns and contract security all move the terms you are offered. We compare across a panel, and for operators buying regularly we can put a facility in place so each new vehicle draws down rather than starting from scratch.

We are registered with the NACFB and FIBA, and we are paid to find the right structure rather than to place a particular lender's paper.

Frequently asked questions

Hire purchase or leasing for a commercial fleet?

Hire purchase suits businesses that want to own the vehicles outright at the end of the term and keep them for a long working life. Leasing suits businesses that prefer to upgrade regularly, want to avoid residual value risk, or do not want the ownership responsibility.

Can I refinance vehicles I already own?

Yes. Refinancing an existing fleet releases working capital back into the business while you keep using the vehicles. It is a common way to fund a growth push without new borrowing against property.

How quickly can fleet finance be arranged?

Straightforward cases can often complete within one to two weeks once documentation and vehicle details are confirmed with the lender.

Can I finance used vehicles?

Yes. Used commercial vehicles are financed routinely. Lenders normally set a limit on the vehicle's age at the end of the agreement, so the age of the vehicle affects the maximum term rather than ruling it out.

Do I need a deposit?

Usually, commonly around 10 to 20% on hire purchase, though it depends on the asset and the strength of the business. Nil and low deposit structures are available for established operators.

Will asset finance affect my ability to borrow elsewhere?

It is a commitment like any other and will appear in your accounts and credit profile, but because it is secured on the vehicle it usually leaves other borrowing capacity intact, which is a large part of why operators use it.

Can I finance specialist bodywork and conversions?

Yes, including refrigeration units, tail lifts, tippers, cranes and racking. Bespoke conversions need a lender familiar with the resale market for that specification, which is exactly the sort of matching a broker does.

What happens if a vehicle is written off or sold early?

The agreement is settled from the insurance proceeds or the sale, and any shortfall or surplus is dealt with under the terms. We will explain the settlement position on any agreement before you sign it.

Related guides

Speak to us about fleet finance

Send us the vehicle list and the date you need them on the road, and we will come back with realistic structures and costs. We respond the same working day. Contact Sadi's Commercial Finance.