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Light Commercial Vehicle Finance

Nearly 9,000 pickups were registered in September, up 16% on the same time last year. Likewise registrations of 2 – 2.5 tonne vans have seen an 11% increase on last year. So, what’s driving this resurgence in the LCV market?

A changing economy

At the heart of renewed interest in LCVs is an economy being changed by new patterns of consumption and working. The number of self-employed in the UK has grown by 48% since 2000, and growing numbers of workers are making a living in the so-called ‘gig economy’. LCVs are often central to these small, bespoke businesses.

Patterns of consumption are also changing, with the trend towards online retail continuing apace and LCVs delivering goods to people’s doors across the country every day. These trends look set to stay, and the corresponding increase in new LCV registration would indicate that LCVs play an increasingly important role in the UK economy.

Which other vehicles are driving these trends?

Alongside LCVs and the classic White Van, we are also seeing small businesses looking to raise finance for car derived vans and flatbed vehicles such as the Mitsubishi L200 or the Mitsubishi Warrior. Similar vehicles such as the Ford Ranger and the Toyota Hilux are also growing in popularity. At Paragon Car Finance we recognise what these vehicles mean to SMEs across the country and we are always glad to consider financing them and supporting the businesses which rely on them.

What are the key questions those looking for LCV finance need to consider?

Building a business is a challenge but a good finance package, allowing the cost of an LCV to be spread over a longer timeframe, can be crucial. Therefore, when investing in an LCV people should consider how much they want to pay per month, and over how long. The right finance package can turn a big expense into a manageable monthly payment. At Paragon Car Finance we will consider lending over a period of up to 60 months, with no deposit and competitive rates, meaning customers can invest with confidence in the vehicle which will help them grow their business.

Unlike most other lenders we are also happy to consider lending to businesses that don’t yet have a full two years of trading history. Our detailed and bespoke underwriting allows us to asses each case on its merits and we don’t believe in denying finance to a promising start-up, simply on the basis that they haven’t yet been trading two years. In such cases we will however, look for a director’s guarantee.

October 2016

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551