HGV finance: key facts
- HGV finance can fund tractor units, rigid lorries, tippers, curtainsiders, fridges, tankers, trailers and bodywork, new or used.
- Operating goods vehicles over 3.5 tonnes for hire or reward, or in connection with your business, generally needs a goods vehicle operator's licence.
- GOV.UK's licensing guide sets financial standing for a standard national licence at £8,000 for the first vehicle and £4,500 for each additional vehicle; restricted licences need £3,100 and £1,700.
- Financial standing "is not a fee": it's money that must be available for the life of the licence, shown for example through a bank balance and/or an overdraft facility. Finance on the lorry itself doesn't provide it.
- A traffic commissioner can ask to see maintenance contracts or arrangements, so lenders and licensing both care about how vehicles are maintained.
- Used HGV finance depends on age, mileage, make and condition, and some lenders set a maximum age at the end of the agreement.
- Long customer payment terms are common in haulage, which is why many hauliers use invoice finance alongside vehicle finance.
- We don't publish rates or costs. Finance is subject to status and the lender's checks.
What can HGV finance be used for?
HGV finance can fund the whole rig: tractor units, rigid lorries, tippers, specialist bodies and the trailers they pull, plus tail-lifts, cranes and refrigeration units fitted to them. Units and trailers are often financed separately because they last different lengths of time.
| Vehicle | Finance points |
|---|---|
| Tractor units | Strong resale market for mainstream makes; mileage builds quickly on trunking work, so lenders look at likely mileage over the term. |
| Rigid lorries and tippers | Common for construction, waste and distribution; specialist bodies (tippers, hook-loaders, cranes) may need lenders who know those vehicles. |
| Trailers | Usually last longer than units and are often financed over a longer term; specialist trailers (low-loaders, tankers, fridges) have a narrower resale market. |
| Bodywork and equipment | Fridge units, tail-lifts and lorry-mounted cranes can often be included with the vehicle. |
Separating units and trailers makes sense for many operators: a trailer can outlive two or three units, so tying both to the same term may not match how you actually use them.
How does HGV finance affect your operator's licence?
Every vehicle authorised on an operator's licence needs financial standing: available money, not borrowed against the lorry. So when you finance an extra vehicle you may also need to show more financial standing (£4,500 per additional vehicle on a standard licence), and putting all your spare cash into deposits can leave you short.
This is the part of HGV finance that catches people out. GOV.UK's goods vehicle operator licensing guide says you must have enough money available to keep your vehicles fit and serviceable. The current amounts it lists are:
| Licence type | First vehicle | Each additional vehicle |
|---|---|---|
| Standard national | £8,000 | £4,500 |
| Standard international | £8,000 (or £1,600 for the first light goods vehicle if no HGVs) | £4,500 per HGV, £800 per light goods vehicle |
| Restricted (own goods only) | £3,100 | £1,700 |
The guide says financial standing "is not a fee that must be paid for a licence, it is resources that must be available for the duration of the licence", and can be shown through, for example, a bank or building society balance and/or an overdraft facility. More detail is in the Senior Traffic Commissioner's statutory document on finance.
What this means when you add vehicles
- Plan the licence and the finance together. If you're growing from three lorries to five, check your authorisation and your financial standing as well as the finance for the trucks.
- Watch your deposits. A big deposit on a new unit reduces your monthly payments but also reduces the cash you can show as financial standing.
- Keep your maintenance arrangements solid. A traffic commissioner may ask to see maintenance contracts or letters from your garage. Lenders also prefer well-maintained fleets, because that protects the vehicle's value.
Can you get finance on a used HGV?
Yes, used lorries are financed all the time. Lenders look at age, mileage, make, specification and condition, and many want the agreement to end before the vehicle reaches a certain age. Specialist or heavily modified vehicles have fewer lenders.
The used truck market is large and lenders understand it, but the details matter:
- Age at the end of the agreement. Some lenders set a maximum age the vehicle can reach by the final payment, so an older truck may mean a shorter term.
- Mileage and specification. A mainstream unit with sensible mileage and a common spec is easier to fund than an unusual one.
- Emissions. If you work in cities with clean air or low emission zones, an older vehicle may cost you charges or be harder to resell. Check the zones you run into before you buy.
- Proof of ownership and no outstanding finance. Lenders check this; private sales need particular care.
- Condition. Recent MOT (annual test) history and service records help support the value.
Which type of HGV finance suits a haulage business?
Hire purchase suits operators who want to own vehicles and run them for years. Leasing and contract hire suit those who prefer fixed costs and regular replacement, sometimes with maintenance included. Refinancing releases cash from vehicles you already own.
| Option | Who it tends to suit | Watch out for |
|---|---|---|
| Hire purchase | Operators who keep vehicles long-term and want to own them | VAT on the vehicle is usually due at the start; a balloon payment leaves a lump at the end |
| Finance lease | Operators who want lower upfront costs and flexibility at the end | You don't own the vehicle; check the end-of-lease options |
| Contract hire | Operators who want fixed monthly costs and to hand vehicles back | Mileage limits and return conditions; excess mileage and damage charges |
| Refinance | Operators with vehicles that are paid for and need cash | Older vehicles release less; you're adding a new monthly cost |
Our hire purchase vs leasing guide explains ownership, VAT and end-of-term options in more depth.
Why is cash flow such an issue for hauliers, and what helps?
Hauliers pay for fuel, wages, tolls and maintenance every week but often wait weeks for customers to pay invoices. Invoice finance, which advances money against unpaid invoices, is widely used in haulage for that reason. A business loan or overdraft can also bridge seasonal peaks.
A haulier can be busy and profitable and still run out of cash. The usual causes:
- Long payment terms from customers and freight exchanges, sometimes longer than agreed.
- Fuel, the biggest variable cost, paid up front or on a fuel card with short terms.
- Seasonal peaks, when you need extra drivers, agency staff or hired-in vehicles before the extra income arrives.
- Repairs that take a vehicle off the road and cost money at the same time.
Invoice finance (factoring or invoice discounting) lets you borrow against invoices once the work is done, so your income keeps pace with your costs. Lenders look at who your customers are, how reliably they pay and how your invoices are documented (proof of delivery matters). Disputed or very small invoices are harder to fund.
Keeping your vehicle finance and your cash-flow finance separate also helps: you don't want to stretch an HP agreement or skip financial standing to cover a slow-paying customer.
Can a new or small haulage business get HGV finance?
Some lenders fund new and small operators, often with a larger deposit, personal guarantees from the directors, or a focus on the driver-owner's experience and contracts. Having your operator's licence, insurance and first contracts lined up makes a big difference.
Many haulage businesses start with one driver and one truck. Lenders who fund start-ups typically want to see:
- your experience as a driver or transport manager, and who holds the certificate of professional competence for a standard licence
- the operator's licence (or application), insurance quotes and maintenance arrangements
- the work you've got lined up: a contract or regular subcontract work from an established haulier helps a lot
- a realistic budget that includes fuel, insurance, maintenance, tolls and your financial standing
Expect to be asked for a deposit and possibly a personal guarantee. Be wary of anyone promising easy finance regardless of your circumstances: every lender makes its own checks.
What will a broker need for an HGV finance enquiry?
Your business details and Companies House number, operator's licence number, accounts and bank statements, details of the vehicle (registration, mileage, price and seller), your main customers and your current fleet and finance.
- The business: type, Companies House number, years trading, directors.
- Your licence: operator's licence number and authorisation, and who your transport manager is.
- The vehicle: make, model, year, mileage, price, seller and specification.
- Your figures: recent accounts, management figures and business bank statements.
- Your fleet: what you run now and what finance is already in place.
- Your work: main customers, contracts and typical payment terms.
Related guides
HGV finance: frequently asked questions
What is HGV finance?
HGV finance is asset finance for heavy goods vehicles such as tractor units, rigid lorries, tippers and trailers, usually on hire purchase, leasing or contract hire. The vehicle is normally the lender's security.
Does finance count towards operator licence financial standing?
Finance on the lorry itself doesn't give you financial standing. GOV.UK says financial standing is resources that must be available for the life of the licence, shown for example by a bank balance and/or an overdraft facility.
How much financial standing do I need?
GOV.UK's operator licensing guide sets £8,000 for the first vehicle and £4,500 for each additional vehicle on a standard national licence, and £3,100 and £1,700 on a restricted licence. Check the current figures before you apply.
Can I finance a used lorry?
Yes, used HGVs are commonly financed. Lenders look at age, mileage, make, specification and condition, and some limit how old the vehicle can be at the end of the agreement.
Can I finance trailers separately?
Yes. Trailers often last longer than units, so many operators finance them separately and over a different term.
Can a new haulier get HGV finance?
Some lenders fund new operators, often with a deposit, personal guarantees and evidence of experience, licence, insurance and work lined up. Finance is subject to status and the lender's checks.
What is contract hire for HGVs?
Contract hire is a form of leasing where you pay a fixed monthly rental, sometimes including maintenance, and hand the vehicle back at the end. Check mileage limits and return conditions carefully.
How can hauliers deal with slow-paying customers?
Invoice finance lets you borrow against unpaid invoices so you're not waiting weeks for cash. Lenders look at your customers' payment record and your paperwork, including proof of delivery.
Do you provide HGV finance?
No. We are an independent guide and introducer, not a lender or a broker. With your consent we pass your enquiry to one specialist commercial finance broker from our partners. We may be paid for the introduction.
Sources
We checked the facts on this page against these sources on 12 November 2026: