How To Get a Business Lease Car

What is a business lease?

Business car leasing or Business Contract Hire (BCH) is a type of car finance where your company leases a car for a set term, pays fixed monthly instalments and returns the vehicle at the end of the contract. This type of leasing contract does give you the option to buy the car.

Like personal leasing, a business car lease follows the same processes, but the contract is under your company name instead of an individual's.

There are different types of business car leases, including:

Business Contract Hire (BCH)

This is a typical business leasing agreement suitable for various company types. You sign up for a fixed term and pay instalments over the contract, and at the end, you return the vehicle to the finance company. This type of leasing is suitable for most organisations, such as limited companies, sole traders and partnerships.

Self-employed business leasing

Self-employed car leasing works in the same way as BCH. However, this option is tailored to self-employed individuals and sole traders.

For further details on business leases, check out the Business Leasing Explained guide.

Business car leasing process

The process of leasing a business car is simple, and at Leasing Options, you get a dedicated Account Manager to guide you through each step.

Here's what to expect when leasing a company car:

1. Select a lease car

Search a wide range of lease car stock and check out the latest deals. There is a vast range of offers on top brands and models, including electric cars.

2. Get a quote

Once you've picked a lease car, select the term, mileage and any extras you require and request a quote.

3: Apply for finance

If you're happy with the quote, apply for finance by completing our finance proposal form. Leasing Options has access to a wealth of funders and can help you get the best deal on your lease. You will also undergo a credit check at this stage.

4. Sign the finance documents

Once you’ve received your finance agreement, it's time to sign and complete the paperwork. Again, you'll often receive this via email to speed up the process.

5. Arrange delivery of your lease vehicle

If your business lease car is in stock, you can arrange delivery within two weeks of signing the documents. However, if the vehicle is out of stock, your account manager will help you arrange delivery once it arrives.

What do you need to lease a car for business?

Most businesses are eligible to take out a business lease agreement, no matter how long they've been trading. Examples of eligible organisations include:

• Limited Companies (LTD)
• Public Limited Companies (PLC)
• Self-employed/Sole Trader
• VAT and non-VAT registered companies

It is also possible for new businesses (trading under two years) and companies with bad credit to obtain a car lease. However, there are often other requirements to meet in these circumstances.

What documents are needed for a business car lease?

When you apply for a business lease, your company undergoes a credit check to determine eligibility. You will also need several documents to support your application. These include:

Necessary documents

• Proof of identity (business owners and directors)
• Company registration details
• 3-6 months of business bank statements (proof of income)
• Names and addresses of director(s)

Documents that may be required

• Financial statements or management accounts (if available)

Companies that have been trading for under two years may also need to provide additional information at the request of the finance company.

Who qualifies for a business lease?

To qualify for a business lease, you need to fall under one or more of the below organisations:

• Limited Companies (Ltd)
• Public Limited Companies (PLC)
• Self-employed/Sole Trader
• Partnership
• Limited Liability Partnership (LLP)
• Charities
• Embassies
• VAT and non-VAT registered companies

New businesses and companies with bad credit may also be eligible depending on the circumstances and proof of income. Specialist funders typically look at these applications to assess suitability.

Credit score requirements

In most cases, leasing companies require eligible businesses to have a good or excellent credit score for a successful application. A credit check is done during the process, and this provides information such as:

• Accounts and financial history
• Business bank account status
• Company registration details
• Prior credit limits, overdrafts, mortgages and loans
• Missed or late payments
• Financial links to other people and businesses
• Information on CCJs and debt issues
• Fraud issues
• Company owner/director details

The above information provides a financial background for your business and supports your application.

Business car lease eligibility checker

If you want to see whether you are eligible for business lease finance, our financial eligibility checker is a quick way to get an insight. This resource takes you through a few questions to determine your suitability without impacting your credit score.

Why could business leasing be right for me?

Leasing is an excellent option for many companies looking for a cost-effective and flexible solution for managing business fleets.

Check out some of the top business leasing benefits below to see if this option is right for you.

1. Access to the latest models and technology

With terms typically ranging between two and four years, you can regularly upgrade your fleet to the latest models, including electric cars and vans.

2. Tax benefits

Leasing a business car offers several tax advantages for companies, such as tax-deductible monthly instalments and reclaimable VAT depending on vehicle use.

For more information on tax benefits, check out our – Is a Car Lease Tax Deductible guide.

3. Fixed monthly payments

At the start of your contract, fixed monthly payments are agreed over the term. This helps businesses to budget accordingly and manage motoring costs more effectively.

4. Flexible term and initial rental payment

Business car leases offer flexible terms, so you can choose the contract length to suit your needs. You can also decide how much you pay in the first rental payment to suit your budget. This payment ranges from one to 12 months' worth of instalments. The more you pay upfront, the lower the instalments will be over the agreement.

5. Mileage allowance to suit your business needs

Mileage allowances can be tailored to your company's requirements. This is agreed at the start of the contract, so it's best to estimate how much you'll need to ensure you don't face any excess mileage fees.

6. No hassle with vehicle depreciation or reselling

The depreciation of the vehicle is combined into your lease agreement, so you don't have to worry about this during your contract. In addition, you return the car at the end of the term, so there are no hassles with having to resell before you upgrade.

7. Switch to electric vehicles with ease

If you're considering the switch to electric motoring, it's an easy transition if you opt for an electric leasing agreement. There's a wide choice of cars from top brands, many with impressive range and performance, all for a fraction of the running costs.

8. Company car costs all in one place

Business leases are a great way to manage company motoring costs more effectively. Most of your expenses are in one place, as road tax is included in your agreement. In addition, opting for an insured lease contract and maintenance package also bundles your entire car costs in one fixed monthly payment to improve cost management.

For more information on getting a business lease, contact our team to discuss your options.