New business car leasing for limited companies and sole traders
Independent brokers with a panel of 20+ funders, including funders that will consider a company without filed accounts. Tell us when you started trading and the vehicle you need, and a specialist tells you what a funder is likely to ask for.
- Rated 4.9/5 on Feefo
- FCA authorised, FRN 315268
- BVRLA leasing broker member
- Part of Global Vehicle Group
- All business leasing
Can a new limited company lease a car?
Yes, often. A company that was incorporated recently, or a sole trader who has only just started trading, is not shut out of business contract hire. What changes is how the application is assessed. A funder looking at a five-year-old company can read its filed accounts. A funder looking at a company that is six months old cannot, so it asks different questions: can the business afford the rentals from what it is actually earning, what does the director's own financial position look like, and does the vehicle make sense for the work the company does.
Different funders answer those questions differently. Some will not look at a company under a certain age at all; others will, provided the evidence is there. That is the whole reason Intelligent Vehicle Finance brokers across a panel of more than 20 funders rather than placing every application with one lender. We know which funders are comfortable with newer businesses and what each one wants to see, so the application goes to the right place first time rather than collecting declines that make the next application harder.
What we will not do is promise an outcome. Every agreement is subject to status and each funder applies its own criteria. What we can do is tell you honestly, usually within the first conversation, whether your situation is one we can place, what the funder is likely to ask for, and what your realistic next step is.
New business leasing: key facts
- Business contract hire is open to limited companies, LLPs, partnerships and sole traders, including those that are newly formed. Acceptance is always subject to status.
- Intelligent Vehicle Finance places applications across a panel of more than 20 funders, so a new company is matched to a funder that will consider it rather than one that will not.
- Without filed accounts, a funder will typically look at recent business bank statements, the director's own financial standing and, sometimes, a short forecast or evidence of contracts.
- A director guarantee is a common route for newer companies. It is a personal commitment and we explain exactly what it means before anyone signs.
- A fully electric company car is taxed at 4% of its list price as a benefit in kind in 2026/27, which is why many new directors choose an EV for their first company vehicle.
- Companies House recorded 815,280 new incorporations in 2025/26. New companies are not a niche; they are a large part of the UK business population.
- There is no online application and no automated decision here. You speak to a named specialist who has placed new-company applications before, and the first conversation costs nothing.
Why a new company's application is assessed differently
A contract hire agreement commits the business to a fixed rental every month for two, three or four years. Before a funder takes that risk it wants to be confident the rentals will be paid. For an established company, the evidence is largely already on the public record: filed accounts at Companies House, a credit file built over years of trading, and a payment history with other lenders.
A company incorporated this year has none of that yet. Its first accounts are not due until well after its first anniversary, and its credit file may be almost empty. That is not a mark against the business; it is simply an absence of information. The funder fills the gap by looking at what does exist: money moving through the business bank account, contracts or invoices that show real work, the director's personal credit standing, and the director's track record, including any previous businesses.
This is where a broker earns its place. Sending a thin, unsupported application to a funder that rarely writes new-company business produces a decline, and a recorded search on the company's file. Sending a well-prepared application to a funder that regularly does produces a conversation. Intelligent Vehicle Finance does the second thing.
Why "two years' trading" exists, and what a director can do about it
Almost every leasing website repeats that funders want two years' trading, and almost none explain where the number comes from. It is not an arbitrary preference. It follows from the Companies House filing calendar.
A new limited company's first set of accounts is not due until 21 months after the date it was registered. Subsequent accounts are due nine months after each financial year end. So a company that uses its full first deadline has nothing on the public record for the best part of two years, however well it is trading. The funder is not doubting the business. It simply has no filed accounts to read, because none are due yet.
That is why funders substitute other evidence for younger companies, and it is why the evidence in the table below matters far more than it would for an established business. It is also why the position changes sharply the moment a first set of accounts is filed.
The practical consequence. A company's first accounting reference date is set by default to the end of the month of its first anniversary, but a director can shorten that period at Companies House. Doing so brings the first filed accounts forward, sometimes by many months, and puts them on the public record where a funder can see them. If a vehicle is likely to be needed in a year's time, this is worth discussing with your accountant now rather than later. It costs nothing, and at least one major UK funder publishes filed first-year accounts as one of the specific events that reduces what it requires from a new business.
One warning follows from the same logic. Filing dormant accounts, or the very short micro-entity accounts many new companies file, gives a funder little usable information. A filed set of accounts helps most when it actually shows trading. Speak to your accountant about what your first filing will show before assuming it will help.
Filing deadlines: GOV.UK, accounts for a private limited company. Intelligent Vehicle Finance is not a firm of accountants; confirm any change to your accounting dates with your own accountant.
What a funder may ask for when there are no filed accounts
Not every funder asks for everything below, and the list varies with the vehicle, the term and the company's circumstances. We tell you which of these applies to your application before you gather anything, so nobody wastes a week assembling paperwork the funder never wanted. You do not send documents through this website; once we know which funder suits you, we explain how to supply what is needed securely.
| What may be requested | Why it helps the funder | When it tends to be asked for | Worth knowing |
|---|---|---|---|
| Recent business bank statements | Shows real money coming in and going out, and whether the rental is affordable from trading | Most new-company applications | Usually the last three months; a dedicated business account makes this far easier than a personal one |
| Management accounts or a simple profit and loss | Gives a picture of turnover and margin before the first statutory accounts exist | Companies trading for several months, higher-value vehicles | Your accountant or bookkeeping software can usually produce this in an hour |
| Evidence of contracts, invoices or an order book | Demonstrates the income is real and likely to continue | Very new companies, consultants and contractors, trades with a pipeline | A signed contract with a known client can carry more weight than months of modest turnover |
| A short forecast or business plan | Shows the director has thought about cash flow and where the vehicle fits | Companies with little trading history yet | One or two pages is enough; funders are reading for realism, not polish |
| The director's personal details and consent to a credit search | Where the company has no history, the director's own standing is the best available signal | Almost every new-company application | Identity and address checks are a legal requirement under money-laundering rules, not a judgement on your business. Funders must verify the company, its directors and anyone owning more than 25% |
| A director guarantee | Gives the funder recourse to the director personally if the company cannot pay | Commonly requested for companies under two years old; sometimes for longer | A personal commitment: read the section below and take independent advice before signing |
| A larger initial rental | Reduces the funder's exposure over the term | Occasionally, as an alternative to or alongside a guarantee | We will tell you if a funder has asked for this and what the options are; it is never assumed |
Your situation and the likely next step
Most new-business enquiries we handle fall into one of the situations below. Find yours, then tell us about your business and we will confirm which route applies. None of these is a promise of acceptance; each is the route we would normally take first.
| Your situation | Likely next step | What usually helps |
|---|---|---|
| Incorporated in the last few months, trading, no accounts filed yet | Application to a funder that considers new companies, supported by bank statements and the director's details; a guarantee is likely to be discussed | A business bank account with regular income; a vehicle proportionate to the turnover |
| Sole trader for years, now a limited company | Often the strongest new-company case: the funder can see the trading history behind the new entity | Your sole-trader accounts or tax returns, and an explanation of the change |
| Contractor or consultant with a signed contract but little turnover so far | Application built around the contract and the director's professional standing | The contract itself, day rate and term; previous employment history in the same field |
| Trade business needing its first van | Van contract hire through a funder used to new trades; see our van leasing pages for the vehicles | Evidence of work booked; a van sized for the job rather than the largest available |
| Director with a strong personal position and a brand-new company | Company application with a director guarantee, or a comparison with leasing personally; we run both sets of figures | Clarity on who will use the car and how much of the use is business |
| New company needing two or more vehicles at once | Usually staged: the first vehicle establishes a payment record that makes the second easier | A realistic order of priority; we will say plainly if two at once is unlikely to place |
| Company not yet trading, no income, no contracts | Honest answer: usually too early for a company agreement. We tell you what would change that and when to come back | A few months of trading through the business account, or a signed contract |
How Intelligent Vehicle Finance places a new-company application
- You tell us about the business. When it started trading, what it does, who will drive the vehicle, the vehicle you have in mind, mileage and timing. Five minutes on the phone or the short enquiry form.
- We give you a straight view. Whether it is a situation we can place, which one or two funders on our panel are the right fit, and exactly what they are likely to ask for. If it is too early, we say so and tell you what would change it.
- We quote across the panel. Written options showing the monthly rental, initial rental, term, mileage and any fees, from funders that will consider your company. No online pricing: the figures are matched to your circumstances, not a generic list.
- One application, to the right funder. We prepare it with the supporting evidence the funder wants, so it is assessed properly the first time. If a director guarantee is part of the proposal, you know before you apply, not after.
- Decision, paperwork and delivery. Once approved, we handle the order, the documents and free UK delivery to your door, and your named account manager stays with you for the term and the renewal.
Director guarantees: what they mean and why a funder may ask for one
A limited company is a separate legal person. If it cannot pay its debts, its directors are not normally liable for them personally. That protection is one of the main reasons people incorporate, and it is also the reason a funder may hesitate over a new company: if the business fails in year one, the funder has no one to recover the outstanding rentals from.
A director guarantee, sometimes called a personal guarantee, bridges that gap. By signing one, the director agrees to be personally responsible for the company's obligations under the lease if the company does not meet them. In plain terms: if the company stops paying, the funder can ask you to pay, and can pursue you personally for the sums due under the agreement. It is a real commitment with real consequences, and it should be treated as seriously as any other personal financial obligation.
Three things we make sure every director understands before a guarantee is signed. First, what exactly is guaranteed: usually the rentals and other sums due under that specific agreement, not the company's debts in general, but the wording of the funder's document governs. Second, how long it lasts: typically until the agreement ends and the vehicle is returned. Third, that you should take independent legal advice before signing; some funders require it, and we would recommend it regardless.
A guarantee is not a sign that the funder expects trouble. For a company with no track record it is one of the two common ways of getting to yes, and it is frequently the difference between a decline and an approval. We will always tell you whether a funder is likely to ask for one before the application goes in, and we will never present it as a formality.
The other way is rentals in advance, and the two are usually alternatives rather than a pair. Instead of taking a personal commitment from the director, a funder can ask for a larger number of rentals up front, which reduces what it is exposed to across the term. Funders differ markedly here: some ask for a guarantee, some ask for rentals in advance, and at least one major UK funder states in its published credit policy that it does not accept directors' guarantees at all and prices new-business risk entirely through the rental profile. That is worth knowing before you assume a guarantee is unavoidable, and it is one of the first things Intelligent Vehicle Finance checks when deciding where an application should go.
Three things about a guarantee that are rarely spelled out
- It survives the company. A guarantee is a separate contract between you and the funder. Winding the company up, or the company becoming insolvent, does not end it. Starting a new company does not end it either.
- It does not appear on the company's Companies House record. Companies House registers charges created by a company over its own property. A guarantee given personally by a director is not one, so nothing about it is filed there.
- Where more than one director guarantees, liability is usually joint and several. The funder can pursue any one guarantor for the whole amount, not a share of it. If two directors sign, each should understand they may be asked for all of it.
None of this makes a guarantee a bad idea. It makes it a decision worth taking properly. Take independent legal advice before signing one, whoever the funder is.
What makes a new-company application stronger
None of the following guarantees an approval, and there is no trick that turns an unaffordable rental into an affordable one. But from the applications we handle, these are the things that consistently help a funder say yes to a newer business.
- A dedicated business bank account with regular activity. Trading through a personal account makes the company's income almost impossible for a funder to read.
- A vehicle that fits the business. A consultant's first company car and a landscaper's first van both make sense to a funder; a prestige vehicle on a turnover that barely covers it does not.
- Being registered and consistent. The company's Companies House record, its bank account, its website and its invoices all showing the same trading name and address.
- Paperwork ready before it is asked for. If we tell you a funder will want three months of statements and a forecast, having them ready shortens the decision from days to hours.
- The director's own affairs in order. Where the company has no history, the director's standing carries weight. Being on the electoral roll and keeping personal commitments up to date matters.
- Realism about the term and mileage. A shorter term or a sensible mileage can lower the rental to a level a funder is comfortable a new business can sustain.
Lease through the new company, or lease personally?
A director whose company is very new sometimes has a stronger personal position than the company does. In that case the honest question is not "will the company be accepted" but "which route is better for you". We arrange business and personal contract hire under one roof, so we can run both sets of figures side by side and let you and your accountant decide.
| Consideration | Business contract hire (company) | Personal contract hire (director) |
|---|---|---|
| Who holds the agreement | The company, possibly with a director guarantee | You, personally |
| How the application is assessed | Company affordability plus the director's standing; evidence as in the table above | Your own income, outgoings and credit file |
| VAT | A VAT-registered company can typically reclaim 50% of the VAT on the finance rental, up to 100% if the car is used solely for business | Rentals are quoted including VAT; nothing to reclaim |
| Company-car tax | Benefit-in-kind applies if the car is available for private use: 4% of list price for a fully electric car in 2026/27, up to 37% for petrol or diesel | None; you pay from taxed income |
| Rentals against profits | Normally deductible against taxable profits, subject to the applicable tax rules; for a car emitting more than 50g/km CO2, 15% of the relevant hire cost is disallowed for corporation tax. At or below that threshold the full rental is allowable | Not a business expense; business mileage may be claimed separately |
| Where it usually lands | Strongest case on a low-emission car with real business use | Often better on a higher-emission car, or where the company is not yet ready to be assessed |
The tax rows are a summary, not advice. Our guide to company car leasing for directors works through the position in detail, and your accountant should confirm how it applies to you.
Electric company-car BiK: 4% (2026/27) → 5% (2027/28) → 7% (2028/29). Petrol and diesel: up to 37% (38% from 2028/29). Rates are set by HMRC and subject to change.
An electric car as the first company vehicle
Many of the new directors we speak to choose an electric car for the company's first vehicle, and the reason is tax. If a company car is available for private use, the director pays benefit-in-kind on it. For a fully electric car that charge is 4% of the list price in 2026/27, against up to 37% for an equivalent petrol or diesel model. For a new company where the director is drawing a modest salary, that difference is significant, and it is one of the few areas where a brand-new company and an established one are treated exactly the same.
Our electric car leasing hub covers range, charging and the models that suit company use, and our company car tax and BiK guide sets out the HMRC bands to 2029/30 with worked examples. The eligibility questions on this page apply in the same way whichever car you choose.
Related pages from Intelligent Vehicle Finance
This page is the new-business specialism within our wider business car leasing service. Before you apply, our guide to the documents needed to lease a car for business goes deeper on the evidence table above, and the leasing vs buying a company car comparison covers the alternative of buying outright. For the tax side, VAT on business car and van leasing explains what a VAT-registered company can reclaim on the rentals, and company car or car allowance helps once you start taking on staff. Trades needing their first vehicle should start at van leasing. Shorter answers to common questions are on our FAQ page, and all our guides are listed at IVF leasing guides.
What consumer protections apply to a company agreement, and what do not
Intelligent Vehicle Finance would rather you knew this before you signed than afterwards, and it is not something the leasing industry explains often.
When a limited company takes a business contract hire agreement, that agreement is generally not a regulated agreement. The consumer hire rules apply where the hirer is an individual, or a small partnership or unincorporated body. A limited company is neither, so the agreement sits outside the Consumer Credit Act regime whatever its value. In practical terms the company does not get a statutory cooling-off period on the hire agreement, and the protections that attach to regulated consumer agreements do not attach to it. The company's rights come from the contract it signs and from general contract law, so the contract matters more, not less.
A point of genuine confusion worth clearing up: some leasing sites tell limited-company customers they must sign a declaration confirming the vehicle is for business use in order to fall outside the consumer rules. That declaration is not what takes a limited company outside those rules. A limited company was never inside them. The declaration matters for sole traders and small partnerships, where the value of the agreement and the purpose of the hire genuinely do decide the question.
Two things do still apply, and they matter. First, we are regulated whatever the agreement is. Intelligent Vehicle Finance is authorised and regulated by the Financial Conduct Authority, we are a credit broker rather than a lender, and we disclose the commission we receive. Second, as a BVRLA member we are bound by its Leasing Broker Code on pre-contract information, contract clarity and its dispute resolution service.
One further point for any director signing a guarantee. Because a guarantee of a company hire agreement is not a guarantee of a loan or of a regulated agreement, a director should not assume the Financial Ombudsman Service will be available to them in relation to it. That is another reason to take independent legal advice before signing, and to read the funder's guarantee wording rather than a summary of it.
New business car leasing: frequently asked questions
Can a newly formed UK limited company lease a car?
Often, yes. A new limited company is not excluded from business contract hire, but without filed accounts the funder assesses the application differently, looking at business bank activity, the director's own financial standing and whether the vehicle suits the business. Some funders will not consider very new companies; others will. Intelligent Vehicle Finance matches the application to a funder on its panel of more than 20 that will. All agreements are subject to status.
How can a new company lease a car without filed accounts?
By giving the funder other evidence of affordability. That typically means recent business bank statements, sometimes management accounts or a short forecast, evidence of contracts or invoices where they exist, and the director's personal details. A director guarantee is commonly part of the proposal for a company under two years old. We tell you which of these a particular funder will want before you gather anything.
Is there a minimum trading period before a new business can lease?
There is no single rule. Each funder sets its own view of company age and trading history, and those views differ widely, which is why a broker with access to more than 20 funders can place applications a single lender would decline. A company that is not yet trading at all is usually too early; a company with a few months of income through its business account, or a signed contract, often is not. We give you a straight answer on your own situation in the first conversation.
What is a director guarantee on a business car lease?
A director guarantee is a personal commitment by a director to meet the company's obligations under the lease if the company does not. If the company stops paying, the funder can pursue the director personally for the sums due under that agreement. Funders commonly ask for one where a company has little or no trading history. It is a serious commitment, the funder's own document governs its exact terms, and you should take independent legal advice before signing.
Can a sole trader who has just started lease a car or van?
Yes, business contract hire is available to sole traders in their trading name, and a new sole trader is assessed in much the same way as a new company: on affordability from trading, on personal financial standing and on whether the vehicle fits the work. For a sole trader there is no separate legal entity, so the agreement is already personal and a separate guarantee is not normally needed. Vans for new trades are a common request and are covered on our van leasing pages.
Is it better for a new director to lease through the company or personally?
It depends on the car and the director's position. A company lease usually makes the strongest case on a low-emission car with genuine business use: benefit-in-kind on a fully electric car is 4% of list price in 2026/27, the company can normally reclaim 50% of the VAT on the finance rentals (100% where the car is used only for business and is not available for private use) and the rentals are normally deductible against taxable profits, subject to the applicable tax rules. Where the company is not yet ready to be assessed, or the car is a higher-emission model, leasing personally can work out better overall. We run both sets of figures and your accountant confirms the tax position.
Are all the business lease offers on this website available to new companies?
No, and we would rather say so plainly. Advertised business offers are provided by particular funders, and not every funder will write an agreement for a newly formed company. That is why this page does not show a deal grid. Tell us the vehicle you want and we will quote it from the funders on our panel that will consider your company, so the figures you see are ones you can actually proceed on.
What happens after I send an enquiry about leasing for my new business?
A specialist who handles new-company applications calls you back, usually the same working day, to understand the business and the vehicle you need. You get a straight view on whether it is a situation we can place and what a funder is likely to ask for, then written quotations from suitable funders on our panel. Sending an enquiry is not an application and does not involve a credit search; nothing is submitted to a funder until you decide to proceed.
Does a director guarantee show up on my personal credit file or affect my mortgage?
A guarantee is a contract between you and the funder, and it is not registered at Companies House, because Companies House registers charges created by a company over its own property rather than personal commitments given by a director. How a particular lender treats a guarantee when assessing you personally is a matter for that lender, and a mortgage application will normally ask you to declare commitments of this kind. Because a guarantee can be called on after the company itself has gone, and typically lasts until the agreement ends and the vehicle is returned, it should be treated as a real personal commitment when you plan any other borrowing. Take independent legal advice before signing one.
I am a sole trader thinking of incorporating. Should I lease before or after?
This catches people out, because the intuitive answer is usually wrong. A sole trader is assessed on a personal financial record that already exists. A company incorporated last month has no record at all, so incorporating shortly before applying can make a funder’s job harder rather than easier. There is an important exception: where an established sole trade transfers into a new limited company, the trading history behind it can usually be shown to the funder with your sole-trader accounts or tax returns and a letter from your accountant confirming the transfer, and at least one major funder names exactly that situation as a reason to ask for less from a new company. Tell us which of the two situations you are in before you decide on timing, and speak to your accountant about the wider tax and legal consequences of incorporating, which matter far more than the vehicle.
Discuss leasing for your new business
Tell us when the business started trading, what it does and the vehicle you need. A specialist who has placed new-company applications before will tell you honestly where you stand and what a funder is likely to ask for, with no obligation and no credit search at this stage.
Intelligent Vehicle Finance is a trading name of XLCR Vehicle Management Ltd, authorised and regulated by the Financial Conduct Authority (FRN 315268). We are a credit broker, not a lender, and we may receive a commission from lenders for introducing you to them. Intelligent Vehicle Finance is a member of the BVRLA.
All leasing is subject to status and to each funder's individual criteria. Nothing on this page is a promise of acceptance, and the evidence a funder requests varies by funder, vehicle and circumstances. A director guarantee is a personal legal commitment; take independent legal advice before signing one.
Tax treatment depends on your individual and business circumstances and may change in the future. Benefit-in-kind rates are set by HMRC: 4% for 2026/27, 5% for 2027/28 and 7% for 2028/29 for fully electric cars. VAT recovery and the treatment of lease rentals against taxable profits depend on how the vehicle is used and on the car's CO2 emissions. We are vehicle leasing specialists, not tax or legal advisers; please confirm your position with a qualified accountant or solicitor.
Editorial responsibility: Stacey Smith, Brand Director, Intelligent Vehicle Finance. Last updated: September 2026.