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What Documents Are Needed To Lease A Car For Business?

If you’re interested in getting a vehicle lease for your business, it’s easy to get carried away choosing the make and model and fantasising about how your working day might look different with a new car. However, before you can drive away in your new vehicle, there’s the small matter of actually securing the lease for your business. To do this, you’ll need to pass a business car lease credit check and provide the finance company with a number of documents that demonstrate your business is suitable for a lease agreement. 

Documents For Business Car Leasing

Applying for a car lease as a business is slightly different in comparison to the process you might already be familiar with if you have ever applied for a personal car lease. In both circumstances, the finance provider will request a number of documents as part of their affordability and suitability checks. For businesses, these documents will focus on assessing the credit history of the firm as a whole rather than the credit history of the individual making the application. However, specific information about individuals such as company directors can still be requested.

To take out a business car lease, you can expect to provide the following documents and information:

Bank & Financial Statements

The finance company will usually request business bank and financial statements dating back at least three months, although they can ask for more. This information shows that your business can afford to make the agreed monthly payments and can pay its liabilities when they fall due. Some providers may also ask for additional financial information, such as cash flow forecasts and annual turnover information.

Proof Of Business Registration

To get a business car lease, you will need to prove that your business is correctly registered. The finance company will ask for your registered address and current business status. If you pay VAT, you will need to provide your business registration VAT number.

Photographic Identification

Photographic identification must be provided to prove that individuals associated with your business are who they say they are. Typically, it is the business owner who will provide this identification - usually a valid passport or driving licence. 

Company Director Information

Information about the company directors may also be required to support the business car lease application, including their names, dates of birth and marital status. It is usually sufficient for the person making the application to provide this information on their behalf; if specific documentation is required, then the directors may need to submit this themselves.

Why Are These Documents Needed?

There are two main reasons why a finance company will check these documents when you apply to lease a car for business. 

Firstly, these documents are needed for security purposes. It is not uncommon for lease applications to be made fraudulently and therefore the finance company must check that the business requesting the lease is who they say they are and has not used any false information in an attempt to access finance.

Secondly, these documents help the finance provider to conduct a credit check. The business car lease credit check gives the provider certainty that the business can afford to take on the lease and make the agreed monthly payments for the set term, therefore reducing the risk of lending.

What About New Companies?

Despite the fact they may not have built up a credit history, there are no rules to say that new businesses cannot apply for a car lease. However, new businesses are likely to find that the application process is more complex and they may have to prove to the finance provider that they can afford the lease in different ways. This can also mean that additional documentation is required for a new company to get a vehicle lease and the finance provider may request additional bank statements as proof of suitability for lending. 

Get Help With The Documentation Process

It’s important to bear in mind that there is no one-size-fits-all approach to leasing a car for business and the finance provider may request documents in addition to those outlined in this article. For this reason, it’s always important to speak to a lease provider you can trust and get trustworthy advice when applying for a business vehicle lease. 

The team at Intelligent Vehicle Finance are always happy to talk you through the options available to your business and, should you lease a vehicle with us, will help you through the application and documentation process. Get in touch today to kickstart the journey of finding the perfect lease for your business!