99 Problems but Ice Cream Van Finance Doesn’t Need to Be One
Ice Cream Van Owners (or soon to be owners) may have 99 problems but sourcing finance for a new commercial vehicle doesn’t need to be one.
Whether you’re onto your 10th season or a newbie, finding the right finance for an ice cream van purchase doesn’t need to be difficult. There are a few different options available when it comes to purchasing a brand new or second hand van, equipment to kit it all out and bulk buying stock to take advantage of wholesaler discounts.
Asset Finance to Purchase an Ice Cream Van
One of the most popular methods of purchasing an ice-cream van via finance is with asset finance – usually a hire purchase.
What are the benefits of a Hire Purchase?
- Structured payments – Affordable monthly payments over an agreed specific term.
- Ownership – At the end of your agreement, you will own the vehicle whilst with a leasing option you will either return, replace or continue to use the vehicle but will pay the lender to keep using it.
- Tax efficient – You can offset hire purchase interest and charges against pre-tax profits.
Business Loan for Ice Cream Van
Another finance option to purchase an ice cream van is with a business loan. There are two types of business loan options, unsecured and secured business.
A lump sum can be used how you see fit for your business such as purchasing new machinery and equipment, making repairs on your commercial vehicle, bulk buying new stock or to purchase an additional vehicle.
The difference between an unsecured and secured business loan is that a secured business loan when the loan is protected by an asset such as a home, car, stock, bonds or personal property.
Whilst an unsecured business loan is when you don’t need to put any collateral up, the lender will see this as a higher risk and as a result, rates may be higher and you could be turned down due to stricter criteria. However, if you’re turned down for an unsecured business loan, you could still be eligible for a secured business loan.
Refinance Your Ice-Cream for an Injection of Working Capital
Another finance route you could go down is refinancing an asset that you already own such as an ice-cream van or any large pieces of equipment and machinery.
The main reason people choose to refinance is to provide an injection of working capital into the business for cashflow purposes and/or to purchase new machinery.
How have we been able to help a client with their ice cream van asset refinance?
Our client came to us looking to refinance their existing ice cream van worth £55,000. Our team received an answer from the lender within 48 hours of all the relevant information being submitted and was successful in securing finance for the client.
The client received £30,000 over a 5-year term with monthly instalments of £678.73.
A refinance can help provide a helpful injection of working capital into your business for expansion plans, new contracts, new projects or to help with cashflow pressures.
Ice Cream Van Finance for Whitby Morrison Vehicles
Whitby Morrison, the world’s leading ice cream van manufacturer is a local business to us (5 minutes drive away from our office). We’re thrilled that we have been able to arrange finance solutions for their customers, saving them money by finding competitive rates and speaking to our panel of lenders.