What is Horsebox Finance?
If you need to buy a new or second-hand horsebox for your business, you may be bracing yourself for a large cash payment. But there’s good news. Horsebox finance allows you to mitigate the cost of your new acquisition by spreading the cost over a series of affordable monthly payments. This helps make your outgoings more predictable as well as sparing your cash flow.
How does Horsebox Finance Work?
Here’s a quick overview:
Term and Repayment:
Whichever finance agreement you choose, you’ll make fixed monthly payments, usually over a period of up to five years. These payments are not affected by interest rises or inflation, and they include interest and VAT. You may be able to pay off your new horsebox early, but many lenders will impose a fee for this.
Lender Requirements:
As well as the standard credit and security checks, lenders will ask you to prove that your business is financially stable and that you will be able to pay back the full amount. They will usually ask for accounts and income statements covering a few years as well as other documentation, such as a cash flow forecast and balance sheet.
What are my horsebox finance options?
Hire Purchase:
The lender purchases the horsebox for your business, and you pay off the balance over the period of the agreement, plus interest. When it’s all paid off, the horsebox is yours in return for a nominal fee. The interest means that you will ultimately pay back more than the value of the horsebox, but the payments will be smaller and more manageable than buying it outright.
Finance Lease:
Here, the lender also buys the horsebox on your behalf, but this time, you’re not paying towards ownership. Your monthly payments earn you the right to keep and use the horsebox. Once the agreement ends, you can either choose to renew the lease, sell the horsebox on (you’ll keep part of the proceeds), or end the lease and give it back.
Operating Lease:
Payments are calculated based on the residual value of the horsebox. This means that they are typically smaller and more affordable than the other two options. The lender sells the horsebox at the end of the agreement to recoup the rest of the value. You can either terminate the lease, rent a replacement horsebox, or upgrade to a new model.
I already own a horsebox. Can I use it to release cash for my business?
Yes, you can. Like any high-value asset, you can use a horsebox as collateral for a secured business loan. This means you’ll be able to borrow more and pay less interest, but you may lose the horsebox if you can’t make all the repayments.
You can also refinance your horsebox by selling it to a lender to release some equity. You’ll make monthly repayments, allowing you to keep using it.
Horsebox Finance For You
Spread the cost of a new or used horsebox with flexible finance tailored to your needs.
Whether for personal use or professional equestrian transport, structured horsebox finance helps you secure the right vehicle without large upfront costs.