What sort of van loans and finance are available?

Funding options to buy your new van
Depending on your personal circumstances, and also whether you are buying your van for private or business use, there are a number of options available to you in order to find the finance to purchase a van. All loans have pros and cons and so you should take the time to assess all of your loan options to make sure that you are using the one that is right for you.
Small business and personal loans
If you have a good credit score you can go to a mainstream lender in order to source the financing to purchase your van. The loan amounts are different for personal and small business loans so you will need to be aware of this. A personal loan can be for between £7000 and £15,000, whereas a small business loan can be for anything between £1000 and £25,000. All of these loans will have a flexible repayment term that you can negotiate as part of the application process. Make sure you shop around as you will find differences between interest rates, application fees and also early repayment fees. Some loans will not have application fees or early repayment fees, so it is worth your while looking into the details of each possible loan.
Hire purchase and lease agreements
These types of loans allow you to buy your van by essentially leasing it during the term of the loan, and once the last payment has been made it then becomes yours outright. You will find that you will remain tied to your loan provider for the term of the loan because they still legally own your vehicle. You will not be able to sell your vehicle on privately and you are likely to encounter early repayment fees. If you get into the situation where you are no longer able to make the repayments you are also at risk of having your van repossessed.
Loans available if you have bad credit

What are the bad credit options?
If you have bad credit all is not lost as there are a few options available to you, although with these type of loans there are more disadvantages than for mainstream loans. There are some advantages though in that you will actually be able to get the money you need in order to make the purchase and chances are from this you will then be able to make more money through your work. Also, if you take on a bad credit loan you will also be able to start repairing your credit score if you successfully repay it on time and in full. The main disadvantage to this type of loan are the very high interest rates that they attract, and also you will not be able to get the same amount of money through this route as you can via other routes. If you have someone willing to act as a guarantor for you, you can benefit from a higher loan amount and also much reduced interest rates as well.