Best 5 Business Car Loans 2023: Compare UK Lenders & Rates (2023)

Best 5 Business Car Loans 2023: Compare UK Lenders & Rates (1)


Did you know that there are several ways you can find financing for your business vehicle?

Or that you don’t have to go to a bank, you could drive away from a dealership with a car today for a deposit and make easy monthly payments?

In this guide, you’ll find out everything you need to know about funding for your brand new car, including where to look and what’s on offer.

Let’s dive in and find out more.

What’s in this guide?

Top 5 business car loan providers

1. NatWest

Best 5 Business Car Loans 2023: Compare UK Lenders & Rates (2)

Type: Bank

Loan amount: £7,500 to £19,950

Typical APR: 3.4% APR

Loan term:2 to 8 years

NatWest offers personal loans for purchasing vehicles, which are the details used in this example. However, they also provide asset financing through Lombard.

They do not offer a specific APR or example as you can choose a specific plan that can either have a variable or fixed rate, depending on your particular business needs.

Representative: Borrowing £7,500 for five years with monthly repayments of £135 at 3.4% APR, means that you’ll end up paying back £8,155.80 in total.

Company rating on Trustpilot: 1/5

Compare Quotes Now

2. CreditPlus

Best 5 Business Car Loans 2023: Compare UK Lenders & Rates (3)

Type: Alternative finance provider

Loan amount: £3,000 to £100,000

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Typical APR: 7.8%

Loan term: 2 to 5 years

According to the CreditPlus website, they help around 80,000 customers a year to get the right financing to support their business grow and get the essential vehicles you might need.

With an excellent Trustpilot score of 5-stars and hundreds of positive reviews, CreditPlus might be the best option for your business.

Representative: If you borrow £7,500 with an excellent credit rating, for around 48 months with a representative APR of 7.8%, you’ll pay back £182.5 a month, and in the end, you’ll pay back a total of £8,760.

Company rating on Trustpilot: 5/5

Compare Quotes Now

3. Barclays

Best 5 Business Car Loans 2023: Compare UK Lenders & Rates (4)

Type: Bank

Loan amount: From £10,000

Typical APR: No data

Loan term: 1 to 5 years

Barclays is a household name when it comes to banking, loans and mortgages, but could they also help you with asset financing?

Good news is, Barclays offers customers who have been with them for at least 12 months asset financing so that you can purchase things for your business such as equipment and vehicles.

Company rating on Trustpilot: 1/5

Compare Quotes Now

4. Mercedes-Benz

Best 5 Business Car Loans 2023: Compare UK Lenders & Rates (5)

Type: Car manufacturer

Loan amount: £48,384.47

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Typical APR: 5.4%

Loan term: Four years

Mercedes-Benz is one of the most well-known manufacturers of cars not only in the UK but also in the world.

They can offer their customers deals that mean that you make monthly repayments when buying a car, so instead of paying a huge lump sum, you can make secure smaller payments instead.

After you make all of these repayments and any final fees, you’ll then own the car you have bought, but you can drive it from the get-go.

Company rating on Trustpilot: 1/5

Compare Quotes Now

5. Volkswagen

Best 5 Business Car Loans 2023: Compare UK Lenders & Rates (6)

Type: Car manufacturer

Loan amount: The cost of the car

Interest: 3.3%

Loan term: 12 to 60 months

Volkswagen is a German manufacturer that dates all the way back to the early 1900’s, and although it may have a chequered history regarding its affiliations, the British took over post-WW2 and now they are a globally recognised and trusted company.

Company rating on Trustpilot: 1/5

Compare Quotes Now


What is a business loan?

In short, it’s when you ask a lender like a bank to loan you some money so you can pay for things like more workers or a new premises.

You might also have to pay interest ontop of your loan.

Business loans can come from many different places, so as a business owner you should always try and consider as many possible solutions to find the best deal.

What is a short-term business loan?

A short-term business loan refers to a loan that you need to repay in a very short amount of time, usually within two years.

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This means that while you will end up paying less interest when compared to some long-length loans that you can borrow for around five years, the interest rate will likely be higher.

So don’t be put off by high-interest rates because it still might be cheaper than a more extended length loan.

Often, current loans will require a lot of information from you to trust that you will be able to make your repayments.

So, not only will you likely need to have a good credit score, but you may also need to produce full business plans or personal guarantees that you can pay the money back.

This can mean putting your assets up as collateral, like your home or a car for instance.

What is a business car loan?

Unlike business loans, a business car loan could come in various forms.

For instance, usually car manufacturers will let you drive home a car today for a deposit, and then pay off a big price tag in easy to manage monthly payments.

So in some ways, it is a loan, but at the end of those payments, you will own the car you bought.

Other providers such as NatWest will allow you to borrow the money for the vehicle, making it the most comparable with a traditional loan.

This can mean that you can afford a much more expensive car than you might have otherwise been to provide, and the amount that you can borrow is usually dependent on your credit score.

For more about bad credit and loans, check this out.

What are the types of loan available?

So, what exactly are the types of loans on offer? Take a look below and find out.

Hire purchase

One of the most popular methods of purchasing a car, mainly through a dealership, is to use a hire purchase agreement.

This is when you drive away with a car usually on the same day that you put down a deposit, and you agree to pay the rest of the money off in monthly agreements.

Usually, this will be a few years in length, and the APR depends on the dealer, but you could expect it to be around 3% – 4%.

Once you have paid off the remaining balance, you then officially own the car.

The negative side of this is that because you don’t own the car until it’s been paid off, your vehicle can be repossessed if you fail to make your monthly repayments.

In the circumstance that you have already paid off a third of the cost, the dealer will have to produce a court order to take back the car.

Asset financing

Asset financing is offered by most big banks such as Barclays, who can provide their existing customers with a trading history of at least two years to borrow £10,000 or more for up to five years.

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This allows you to purchase things such as vehicles, equipment or anything tangible that your business requires to be able to thrive.

Similarly to most loans, it means that you will be able to spread your costs over a set amount of time, which can help your regular cash flow and ensure that you know what to budget.

Most banks will craft a bespoke arrangement that caters to your businesses needs and finances.

Leasing or contract arrangements

This type of financing is necessarily a long-term rental contract, so you won’t own the car during or after a set amount of time that is contracted.

However, you will have use of a car for monthly payments, where there is usually a strict mileage and details around what kind of condition you need to keep it in.

At the end of these contracts, you can either hand the car back to the dealer or perhaps enter into another deal.

It depends entirely on your personal preferences.

Personal loans

Another option is, of course, taking out a personal loan to purchase a vehicle for your business.

This is sometimes regarded as being a better option than purchase hiring agreements, as you can sell your car to pay off your loan if you fall behind on payments.

You do have to keep in mind that you can only usually borrow a smaller amount, which is typically under £10,000, so you will need to buy a car that is reasonably within your price range.

Plus, you need to be able to ensure that you can pay back what you owe without falling into dangerous debt.

What should you consider when applying for a car loan or lease?

Like with any loan, there are certain things that you should try and consider when concluding whether or not a loan or investment in an asset is right for you.

  1. The cost of the loan
  2. How much the monthly repayments are, and if they are manageable
  3. What kind of deposit you need
  4. The limits that your dealer has

Essentially, ensuring that you can make back your monthly repayments is the most critical factor to consider when looking at your loan options for purchasing a car.

Especially if, like with hire purchases, you don’t own the car till your very last payment, which means that your vehicle could be repossessed should you fall behind on repayments?

If you decide to opt for a leasing arrangement, you should also keep a close eye on the terms and conditions of your lease, and what kind of shape you need to keep your car in.


In conclusion, there are multiple options available to you when you are considering a loan to purchase a car; you could take out a personal loan, a hire agreement or even decide to rent a car for the short term.

Why not take a look at the ExpertSure guides? They will tell you everything you need to know about your finances, or you could fill out the form at the top of the page and discover what loans are available.

Now Read:

  1. The 9 Types of Business Loan Can You Get in The UK
  2. Top 10 Alternative Business Loans 2023


Best 5 Business Car Loans 2023: Compare UK Lenders & Rates? ›

The concurrent increase of rates and decrease in vehicle prices will likely remain consistent through 2023. Rates are expected to continue to increase, explains McBride, “An active Fed will mean further increases in auto loan rates.”

What are commercial loan rates for 2023? ›

Permanent Financing
Loan TypeInterest RateTerm
Conventional Loan4.5% - 5.5%5 - 25 years
Government-Backed Loan3.5% - 4.5%5 - 25 years
Portfolio Loan5.0% - 6.0%5 - 25 years
Apr 3, 2023

What will new car loan interest rates be in 2023? ›

Compare the Best Auto Loan Rates
LenderLowest RateTerms
Bank of America Best Bank for Auto Loans5.29%12 to 75 months
Consumers Credit Union Best Credit Union for Auto Loans4.94%0 to 84 months
Chase Auto Best for Used CarsNot Advertised12 to 84 months
myAutoloan Best for Bad Credit3.99%24 to 84 months
4 more rows

Will interest rates go down in 2023 for car loans? ›

The concurrent increase of rates and decrease in vehicle prices will likely remain consistent through 2023. Rates are expected to continue to increase, explains McBride, “An active Fed will mean further increases in auto loan rates.”

What is the average interest rate on a business loan UK? ›

The representative APR of our “best small business loans” ranges from 7% to 14%. This compares to an average interest rate of 5.8% charged by UK banks for small and medium business loans, according to the latest data from the Bank of England (as at December 2022).

What is a good interest rate on a commercial loan? ›

The average interest rate on a commercial real estate loan is about 2.2% to 18%. The actual interest rate you secure depends on the type of loan you choose, your qualifications as a borrower, and the type of building or project you're financing.

What is the interest rate forecast for 2023 and 2024? ›

Policymakers expect their interest-rate hikes to push the unemployment rate, now at 3.6%, to 4.5% in the last quarter of 2023, and to 4.6% in 2024.

How high will interest rates go by the end of 2023? ›

By the end of the year, rates could rise to around 5.25% if the Fed maintains quarter-point hikes, but could land upwards of 6% if larger hikes are deemed necessary.

Should I buy a car now or wait until 2023? ›

Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.

Where will interest rates be at the end of 2023? ›

We expect that 30-year mortgage rates will end 2023 at 5.2%.”

Will car prices drop in 2023 UK? ›

He said: “Prices are unlikely to fall significantly as there is still a shortage of used cars on the market. This is because fewer nearly-new vehicles are coming onto forecourts as a result of the slowdown in global car production since 2020.”

What is the interest rate prediction for 2023? ›

Savings Rates Forecasts 2022-23

If this ratio holds and the federal funds rate averages between 3.90% to 4.90% in 2023, we can expect the best savings rates to reach 5.00% APY or more.

What is the average interest rate on a car loan with a 750 credit score? ›

The average interest rate on a new car loan with a credit score of 750 is 4.90%, while the average interest rate on a used car loan is 5.47%.

Which bank is best for business loan? ›

Which Are The Top 11 Best Business Loan Banks In India?
  • HDFC Bank Business Loan. Eligibility Criteria. ...
  • Axis Bank Business Loan. Eligibility Criteria. ...
  • ICICI Bank Business Loan. Eligible Parties. ...
  • Kotak Bank Business Loan. ...
  • IDFC First Bank Business Loan. ...
  • SBI Business Loan. ...
  • Citibank Business Loan. ...
  • Bajaj Finserv Loan.
Jan 11, 2023

What is the best place to get a business loan? ›

Best Small Business Loans of 2023
  • Best Overall: Kabbage.
  • Best Revolving Line of Credit: Fundbox.
  • Best for Microloans: Kiva.
  • Best for SBA Loans: Fundera.
  • Best for Same-Day Funding: OnDeck.
  • Best Lender Comparison Site: Lendio.

What business loans are available in UK? ›

What types of business loans are available?
  • Bank Loan: What it says on the tin. ...
  • Secured Loan: The borrower must provide a guarantee or collateral to protect the lender.
  • Unsecured Loan: No collateral required. ...
  • Merchant Cash Advance: Short-term borrowing to cover everyday expenses.

What's the average business loan amount? ›

The average small business loan amount is $663,000. The average small business loan amount from large national banks is $593,000. The average small business loan amount from small national banks is $146,000. The average SBA loan is $107,000.

What is the average length of a business loan? ›

Understanding Common Small Business Loan Terms
Loan TypeCommon Loan TermsTime to Funding
Bank Term Loan3-10 years14-60 days
SBA Loan5-25 years30-90 days
Short-Term Online Loan3-24 months24-48 hours
Long-Term Online Loan1-5 yearsAs quickly as 48 hours
3 more rows

What is a normal commercial rate of interest? ›

What is the Average Commercial Mortgage Interest Rate? The current average commercial mortgage rate is approximately 3.5% to 4.5% for a 30-year term and 3% to 3.75% for a 15-year term. More accurately, the market offers commercial mortgage interest rates of between 2.25% to as high as 18% for some businesses.

Where will UK interest rates be in 5 years? ›

Their forecasts are based on financial market expectations, which see interest rates rising slightly to 4.3% by early 2024 and then falling back to 3.3% by 2026. These figures are highly significant.

How high will interest rates go UK? ›

The Bank of England (BoE) has been increasing UK interest rates over the last year to help lower inflation. This has meant 10 hikes in a row to 4% (February 2023), and variable rate mortgage holders feeling most of the pain.

What will interest rates be in 2024 UK? ›

Analysts mentioned in this article predicted that the rate may peak at around 4.25% (the current level) before easing in 2024 and falling further into 2025 and 2026.

What will UK interest rates be in 2023? ›

Between December 2021 and March 2023 the BOE has increased its base rate at 11 consecutive meetings, taking the base rate from 0.1% to 4.25% which is the highest level in 14 years. The BOE is attempting to quell rising inflation which is now well above the BOE's official target of 2%.

Will interest rates go down in 2023 usa? ›

After home financing costs nearly doubled in 2022, some relief is in sight for potential homebuyers in 2023. The interest rate for a 30-year fixed-rate mortgage in the U.S. is expected to drop to 5.25% by the end of this year, according to a forecast by the financial services website Bankrate.

Will car deals get better in 2023? ›

There is good news on the horizon in 2023, however. J.P. Morgan estimates that prices for both new and used vehicles are set to decrease as supply chain issues abate and inflation is poised to keep easing.

Will prices for used cars drop 2023? ›

Used car prices expected to start dropping in 2023, but not how consumers may expect.

Should I buy a car now or wait until the end of the year? ›

The best time to buy a car is usually around the end of the year since salespeople will be trying to meet their quotas and may offer steep discounts. However, you should also consider holidays — like Black Friday — and the beginning of the week.

Will car insurance go up in 2023 UK? ›

After a reduction in early 2022, average driver premiums were predicted to have increased by 2% (£8) later that year and are expected to soar by 18% (£81) in 2023.
UK car insurance premiums statistics.
YearNet combined ratio (NCR)
1 more row
Feb 8, 2023

What is the average car price for 2023? ›

Jack Hollis, head of sales for Toyota's North American division, said he believes the average transaction price will crest the $50,000 mark in 2023, as reported by Automotive News.

How much will a used car cost in january 2023 UK? ›

The average retail price of a used car was £18,119 in January 2023, according to data from the Auto Trader Retail Price Index, which is based on daily pricing analysis of circa 900,000 vehicles across the retail market.

How many people have a 750 credit score or higher? ›

A 750 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders' better interest rates and product offers. 25% of all consumers have FICO® Scores in the Very Good range.

Can you get 0% APR with 750 credit score? ›

The exact credit score you might need to qualify for a 0% APR loan varies depending on your situation. Many lenders require a minimum score of at least 700. Others require excellent credit scores, such as 720, 750, or even 800.

What is the highest credit limit for 750 credit score? ›

Christie Matherne, Credit Card Writer

The credit limit you can get with a 750 credit score is likely in the $1,000-$15,000 range, but a higher limit is possible. The reason for the big range is that credit limits aren't solely determined by your credit score.

Do business loans have higher interest rates? ›

But some business loans tend to charge higher interest rates, regardless of how solid your credit history and financials are. For example, short-term loans, invoice factoring, and merchant cash advances all tend to charge more than traditional term loans, at least for well-qualified borrowers.

What banks do big businesses use? ›

According to new research from Greenwich Associates, 85% of large U.S. companies use Bank of America Merrill Lynch and/or J.P. Morgan for corporate banking services. In third place is Wells Fargo at 77%, followed by Citi at 64%, HSBC at 45% and Bank of Tokyo-Mitsubishi UFJ and U.S. Bank tied in fifth, each with 44%.

Is it cheaper to get a business loan? ›

Lower interest rates -- If you qualify for the best business loans, you'll probably get a lower interest rate than you would on a personal loan. According to Nav, the interest rates for business loans from traditional lenders ranges from 2% to 13%, while personal loan interest rates range from 6% to 36%.

Who are the largest lenders to small businesses? ›

Digital Lenders Ranked by our FAB* score (updated 27 Feb 2023)
AdNational Funding
22Kabbage (AmEx)
32 more rows
Mar 5, 2023

Where do most small businesses get their financing? ›

Some of the most common sources of small-business financing include banks, credit unions and online lenders. Grants are also available from sources like nonprofits, government agencies and private corporations. Investors or crowdfunding platforms can offer equity financing.

How to successfully get a small business loan? ›

7 Tips To Get Your Small Business Loan Approved
  1. Tidy Up Your Personal Credit.
  2. Create a Rock-Solid Business Plan.
  3. Reduce Your Debt-to-Income Ratio.
  4. Keep Your Daily Bank Balance As High As Possible.
  5. Boost Business As Much As Possible Prior to Applying.
  6. Know your Business and Personal Credit Scores.
Dec 1, 2020

Can a US citizen get a loan in the UK? ›

Yes – but as explained above, lenders will generally only consider applications from borrowers who have been resident in the UK for at least a year or so – and for mortgages, the conditions tend to be even more stringent.

What is the most common type of loan in the UK? ›

The common types include:
  • Homeowner loans.
  • Logbook loans.
  • Bridging loans.
  • Vehicle finance.
  • Some debt consolidation loans.
Oct 28, 2021

What is the UK equivalent of SBA loan? ›

EFG facilitates lending to smaller businesses that are viable but unable to obtain finance from their lender due to having insufficient security to meet the lender's normal security requirements.

Will loan rates go up in 2023? ›

After raising rates dramatically in 2022, the Fed opted for smaller, 25-basis-point rate increases in its first two meetings of 2023. The decision to hike by 0.25% on March 22 suggests that inflation is cooling and the central bank may be able to ease up -- but not stop -- on its rate hikes.

What will interest rates be at end of 2023? ›

Fannie Mae sees the average rate of a 30-year fixed getting to 6.8% in 2023. Meanwhile, the prediction from Freddie Mac is 6.4%. The Mortgage Bankers Association is the real outlier, projecting the 30-year rate at 5.2% next year.

What is the conforming loan limit prediction for 2023? ›

The new ceiling loan limit for one-unit properties will be $1,089,300, which is 150 percent of $726,200. Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $1,089,300 for one-unit properties.

How long will interest rates stay high in 2023? ›

Experts believe rate hikes will continue through 2024, but note concern that a decrease in American spending because of constantly increasing interest rates may trigger a recession.

What is todays interest rate? ›

Current mortgage and refinance interest rates
ProductInterest RateAPR
30-Year Fixed Rate6.89%6.90%
20-Year Fixed Rate6.75%6.78%
15-Year Fixed Rate6.17%6.20%
10-Year Fixed Rate6.32%6.35%
5 more rows

What will interest rates be in 2023 UK? ›

In its UK long-term interest rate forecast as of 6 April, ING saw policy rates staying at 4.25% throughout 2023, until the second quarter of 2024, when it predicted rates to be cut to 3.75%, followed by cuts to 3.25% and 2.75% in the following quarters. In 2025, the bank saw UK interest rates at 2.5%.

Will interest rates go down in 2023 UK? ›

Are mortgage rates expected to rise or fall during 2023? The consensus is that mortgage rates will gradually decline throughout the year, even if interest rates go up. Some predict that fixed rates could fall below 4 per cent by early 2024.

What is the loan market outlook for 2023? ›

Despite these trends bank loan issuer defaults remained low. As of 2022 year end, the bank loan market's trailing 12-month par-weighted default rate was 0.7%. By the end of 2023, we expect defaults to be closer to 3% – 4% as a result of the deteriorating macroeconomic environment and weakening issuer fundamentals.

What is Fannie Mae lending limit for 2023? ›

Fannie Mae loan limit values are increasing in 2023. The new loan limit for most of the country will be $726,200 — an 12.21% increase over the 2022 limit — and is effective for whole loans delivered to Fannie Mae and loans in MBS pools with issue dates on or after Jan.

What are jumbo loans in 2023? ›

Jumbo Loan Limits in 2023 by State

For 2023, the baseline loan limit for a one-unit property in most of the country is $726,200. That's $79,000 higher than the previous year's $647,200. In high-cost areas, the loan limit was expanded to $1,089,300, or 150% of $726,200.


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