Business leasing

You’ll typically need to be a sole trader, a partnership, a public limited company, a limited company, or a limited liability partnership to be eligible for Business Contract Hire (BCH). Governments, embassies and charities can also be eligible. ​

You can often end BCH car finance early by requesting an early settlement figure, or you may be able to return the car and voluntarily terminate your contract if you’ve paid 50% of the total balance. Ending BCH early might add extra fees. Contact your finance provider for more information.  ​​

BCH is generally better for businesses than PCP because the company can claim back some or all of the VAT on the lease agreement. It may also be a benefit that you can hand the car back at the end of your contract. ​

Car finance providers look at the company before making a BCH or loan offer, rather than the individual. How easy it is to get accepted for BCH or a loan will depend on factors such as the company’s financial statements. You might be able to get a soft credit​​

BCH and PCP are different ways to finance a car. BCH is for businesses and is also known as car leasing, where you return the car at the end of your contract. PCP is for individuals who will make monthly payments on their car until the end of their contract, when they’ll have the option to make a final payment and take ownership of the car.