Our offices will be closing early, at 3.30pm, on Friday the 6th of September to allow our staff to celebrate our 20th anniversary. We'll be back to business as usual on Monday morning.
In this guide we’ll be outlining the eligibility criteria, required documentation and steps to take to secure a business lease. Whether you’re a sole trader or a large corporation, our comprehensive guide will help you determine if leasing is the right option for your business.
A variety of different businesses can be eligible for business leases. Below we’ve outlined some of the factors involved.
To qualify for a business vehicle lease, your company needs to be one of the following:
Some other less common company structures can also be accommodated. One of our team members here at Xcite will be able to advise you if your business will qualify. You can also find out more by reading our handy guides.
Your business will likely be subject to a credit check. Any county court judgements (CCJs) and other credit discrepancies will come to light, so it’s a good idea to check your credit rating before requesting credit to ensure a smooth process.
The lender may ask for company details such as registration number and turnover, details of directors and business bank details. You may also be asked to provide business bank statements, management accounts and filed accounting information.
The director of a limited company could also be asked to act as a guarantor. In the event that the company could no longer pay the monthly rentals, the director would be required to make the repayments. The finance company may also request a higher initial payment in certain circumstances.
When your business applies for a lease, we will ask you to complete a proposal form which will detail various pieces of information and documentation we need. This will be broken down into four sections for you.
Contact Details
We will need the contact name, email address and phone number of your business representative that we will be dealing with.
Company Details
We will need the full company name, registered company address, business type and nature, registered company number (if applicable) and VAT number (if applicable), as well as the number of directors (if applicable).
Bank Details
We will need your bank name, branch address, account number, sort code and length of time with your bank.
Director / Partner Details
For each director or partner we will need to know their job title, full name, email address, date of birth, marital status, number of dependents, address history for the last three years and property status (owned, rented)
The funder may also request documentation and details relating to how long the business has been trading for, the annual turnover of the business, filing of accounts, public records including court judgements, bankruptcies and insolvency, Details of any previous credit searches and the director’s personal finances (usually in the form of a soft search).
The first step to securing a business car lease, is evaluating exactly what your business vehicle needs are and how best to meet your business requirements as economically as possible. You’ll want to consider how many vehicles you need, what type of company car scheme you intend to operate and what types of vehicles will best serve the needs of your organisation. What sort of driving will the vehicles be required for and how many miles will they likely cover? Will car sharing feature as part of your fleet strategy?
If you need support in this area, our parent company, Wessex Fleet, has decades of experience in fleet management and can create a bespoke fleet management policy to suit your individual business requirements.
When choosing a car leasing company for your business lease it’s important to ensure they can supply vehicles to meet your specific business needs and offer competitive terms.
We've been providing lease vehicles since 2004 and with over 1700 5-star reviews from our happy customers, it’s fair to say that we know a thing or two about the best car leasing deals. We've built strong relationships with dealerships and manufacturers ensuring we always have the very best offers available for our customers. Our highly trained team can help you every step of the way.
We work independently with all of the UK’s major finance companies along with a wide network of dealers to be able to source you the very best deals on the market.
We have a range of vehicles in stock to get you on the road as quickly as possible once your finance documents are completed and approved, with a lead time of three to four weeks on in stock vehicles.
From the very start of the process, through to the ordering, finance documents and delivery we are here to help every step of the way with advisors you can pick up the phone to. Minimal paperwork required!
We have a comprehensive range of top makes and models available, many with short lead times.
Simply contact us to find out more or view our top car leasing offers.
In order to make the process as simple as possible for you, these step-by-step instructions will help you to gather the necessary information for your application. Realistically, you may want to conduct all of these steps at the same time to speed up your information gathering. It is also advisable to discuss your application’s documentation requirements with one of our team members first so that you don’t source any information that is not required unnecessarily. They will outline any specific details regarding what is required.
Step 1 - Contact your Accountant or Accounts Team
They should be able to supply you with accounts information relating to the annual turnover of the business, filing of accounts, details of any previous credit searches and the director’s personal finances.
Step 2 - Contact your Accounts Team or Bank
They will be able to give you any information you require regarding your bank account details including branch address, account number, sort code and length of time with your bank.
Step 3 - Contact Directors and Partners
Request their job title, full name, email address, date of birth, marital status, number of dependents and address history for the last three years, as well as property status (owned, rented).
Car lease processing times depend on a few factors, including whether the car is in stock or not. If it is in stock the turnaround will be quicker. Regardless whether you decide on a vehicle that is in stock or a factory order, you will need to complete finance documents for the lease agreement first and have them approved by the funder.
For a personal lease, there is a 14-day cooling-off period from when the finance documents are approved by the funder, during which time, we are unable to deliver the vehicles. However, business customers do not usually have a cooling-off period so as soon as the finance documents are completed and approved we will be able to arrange delivery, provided the vehicle is in stock. A cooling off period only ever applies to a business if you’re set up as a Sole Trader, Non-Limited Company or Partnership with up to four partners.
The timeline of the approval process is as follows:
1. Application received by the Xcite team
2. Xcite process the application and submit it to the funder usually within one working day
3. The funder runs the necessary credit checks and process usually within two to four working days
4. The funder may ask for additional information in order to reach a decision
The available application outcomes are:
Delivery lead times can vary according to whether the vehicle is in stock or not.
Once your vehicle is in stock at the dealership and your finance documents are in place we will then be able to arrange delivery. We will work with the dealer to get your vehicle to you as quickly as possible, based on their driver availability.
If you have a current lease vehicle through Xcite, then we attempt to arrange collection on the same day as delivery, by your funder’s agents (not the same person as who is delivering your new vehicle).
The key benefits of car leasing for your business are the financial and operational benefits it offers:
Leasing means your business does not own the vehicle so depreciation of the value and selling when you want to update the vehicle are not concerns your business will need to spend time and resources on.
Leasing offers you a new vehicle to use at a fixed monthly cost, making it easier to budget and manage the business’ cashflow. This is especially true if you decide to add maintenance to the agreement, as this minimises any unexpected servicing or maintenance bills.
As a business you may be able to claim up to 100 % of the VAT back on a lease vehicle, provided it is not used by the driver for personal use as well.
All of our leases are new vehicles so will have the manufacturer’s warranty, and if your lease is for less than three years you won’t need to worry about the MOT. Vehicle tax is also managed by us.
You can customise each lease for the driver selecting the vehicle and tailoring the mileage allowance and lease length.
Leasing can offer flexibility for businesses in terms of fleet management which can be completely outsourced to a fleet management company such as our parent company Wessex Fleet. Vehicle upgrades are straightforward, since leases typically run for no longer than four years, meaning your fleet is always kept up to date with the latest vehicle safety and technological advancements.
Some of the common challenges to leasing involve overcoming financial barriers and managing the lease terms and conditions:
There is no set figure on how much a business needs to earn before applying for a lease, however a good or excellent credit score is typically needed for a successful application and the provider will likely want to see stability of income and proof that the company can afford the monthly payments. You’ll therefore also need to provide evidence that the business has enough history of trading; most finance providers require at least two years' worth of trading.
In order to overcome any possible financial barriers to leasing and improve your credit score, it is advisable to:
Managing lease terms and conditions is an important part of the work you will undertake in securing vehicles for your business. It begins with negotiating the terms prior to agreeing to the lease. Areas you should seek to negotiate wherever possible include:
By negotiating these terms, you can secure a beneficial lease for your fleet that suit your budget while supporting operational needs and reducing financial risks. However, be realistic about how lease deals are structured and that you may not be able to successfully negotiate certain aspects of your lease.
The approval process for a business lease typically takes a few days to a couple of weeks, depending on if you have all of the necessary documentation ready at the start of your application.
Yes, a new business can qualify for a lease agreement, although it may require a strong business plan and financial guarantees. It is more usual for finance companies to require a minimum of two to three years trading.
Yes, business car leasing can offer tax benefits, such as VAT savings and the ability to deduct lease payments as a business expense.
Yes, you can lease multiple vehicles for your business, with fleet leasing options and full service fleet management available from our partners Wessex Fleet.
If your business fails to meet the lease payments, the vehicle may be repossessed, and your business’ credit score may be affected.
You can improve your chances of getting approved for a business lease by maintaining a good credit score, providing comprehensive financial statements and having a solid business plan.
Check out one of our helpful guides or our explaination of leasing to get all your questions answered.
You can unsubscribe at any time
