Taxi and private hire vehicle finance for established operators
A licensed vehicle is a working asset, not a lifestyle purchase, and the right agreement is the one that still makes sense when mileage, downtime and licensing are honestly accounted for.
Who this service is for
- Purchase price of £25,000 or more — not the amount borrowed or the deposit.
- An existing sole trader, limited company or partnership.
- At least 6 months of trading history.
These are Sorbus enquiry criteria, not a finance approval. The lender must accept the vehicle, taxi or private hire use and applicant.
Explore the topics in this hub
Hackney carriage and private hire are different businesses
GOV.UK explains that a taxi or private hire vehicle needs a vehicle licence. Taxis can be hailed in the street or picked up at ranks, while private hire vehicles must be pre-booked. That difference shapes the type of vehicle, the hours it works and how a lender may view the use case.
Who issues the licence also differs. Outside London, applications in England and Wales are generally made to the local council; in London, Transport for London is responsible. Scotland and Northern Ireland have their own processes. We do not summarise any one area's rules as if they applied UK-wide, and you should always check the requirements of the licensing authority that applies to you.
Finance does not grant or guarantee a licence. Before committing to a vehicle, confirm with your licensing authority that the specific vehicle can be licensed for the work you intend to do.
How finance is typically structured
Hire purchase is commonly considered for licensed vehicles. Under hire purchase, ownership usually passes to you only once all payments and any fees set out in the agreement have been met. Until then the lender owns the vehicle.
Some agreements include a final balloon payment. A balloon is a debt you owe, not a guaranteed future value of the vehicle, and it does not mean you can automatically hand the vehicle back at the end. Leasing and other structures exist too, each with different ownership, mileage and return conditions.
Refinancing an existing vehicle or a balloon later on is never assured; it depends on a lender's assessment at the time. Plan around the agreement you sign, not a hoped-for future arrangement.
Compare the whole agreement, not the monthly figure
An advertised monthly payment tells you very little on its own. Compare the total amount payable, any arrangement or documentation fees, any broker fee and commission disclosure, early settlement terms, mileage conditions and who owns the vehicle at each stage.
We are a credit broker and may receive commission from lenders. Ask us how we are paid on any proposal and ask for lender charges in writing.
Tax and VAT treatment depends on whether you trade as a sole trader, partnership or limited company and on your wider circumstances. There is no blanket tax benefit to any finance structure; take advice from your accountant before deciding. Do not assume that consumer-style statutory rights apply to a business agreement; check the agreement itself.
Before you choose a vehicle or an agreement
Confirm the licence position first
Speak to your licensing authority about whether the vehicle you want can be licensed for your intended taxi or private hire work, before paying a non-refundable deposit.
Tell the lender and insurer how the vehicle will be used
Be accurate about hire and reward use and expected mileage. A lender must accept that use, and insurance must reflect it.
Check our enquiry criteria
Purchase price of £25,000 or more and an existing sole trader, partnership or limited company with at least six months of trading. Both boundaries are inclusive.
Understand end-of-agreement obligations
Know whether ownership transfers, whether a balloon is owed and what the settlement position looks like if your plans change mid-term.
Costs and risks to weigh
- A vehicle that cannot be licensed for your intended work may leave you with a debt on an asset you cannot use as planned.
- High mileage can affect agreement conditions, insurance and the vehicle's value; disclose expected usage honestly.
- Balloon payments are owed in full and are not a promise of resale value.
- Early settlement may cost more than you expect; ask for the settlement terms in writing.
- Lender approval is never guaranteed, and refinancing later is not assured.
Sorbus Finance is a broker, not a lender, and works with a selected panel of lenders rather than the whole market. Any offer, cost, deposit, security or guarantee requirement depends on the lender's assessment and the agreement itself. Ask for a written breakdown of lender charges and any broker fee. VAT and tax treatment depend on your business circumstances and structure; take advice from your accountant.
Lender and document checklist
- Purchase price of £25,000 or more (the £25,000 boundary is included)
- Existing sole trader, limited company or partnership with at least six months of trading history (six months is included)
- Supplier quote or vehicle details including purchase price
- Confirmation of intended taxi or private hire use and expected mileage
- Licensing authority that applies to you and any guidance obtained from it
- Recent business bank statements and accounts or tax returns as available
- Details of any existing finance on vehicles you operate
Related finance services
Sources worth reading
- GOV.UK: Taxi and private hire vehicle licence
- Energy Saving Trust: Buying a second-hand electric car or van
Licensing processes differ between London, the rest of England and Wales, Scotland and Northern Ireland. Always confirm current requirements with your own licensing authority. Sources are general guidance and do not replace advice from your licensing authority, insurer, lender or accountant.
Before your enquiry
Check the purchase fits our service
Taxi and private hire finance enquiries are for a purchase price of at least £25,000, by an existing sole trader, limited company or partnership with at least 6 months of trading history. This is the purchase price, not the amount you want to borrow or your deposit.
Frequently asked questions
Who can enquire with Sorbus Finance about taxi or private hire vehicle finance?+
We consider enquiries where the purchase price is £25,000 or more (exactly £25,000 qualifies) and the applicant is an existing sole trader, limited company or partnership with at least six months of trading history (exactly six months qualifies). This is our own enquiry policy, not universal lender eligibility. The £25,000 refers to the purchase price, not the amount borrowed or a deposit. We do not offer this service to start-ups or consumers, and any finance remains subject to lender approval.
Does the £25,000 threshold mean I need to borrow £25,000?+
No. Our policy refers to the purchase price of what you are buying, at £25,000 or more. It is not the amount borrowed and it is not a deposit requirement. Any deposit is set by the lender.
Can I enquire if I am just starting out as a driver or operator?+
No. Our service is for existing sole traders, limited companies and partnerships with at least six months of trading history. We do not provide this service to start-ups or consumers.
Will getting finance help me get a taxi or private hire licence?+
No. Finance and licensing are separate. Licensing is handled by your licensing authority, which differs between London, the rest of England and Wales, Scotland and Northern Ireland. Check that the vehicle can be licensed before committing.
Are you affiliated with any ride-hailing app or vehicle manufacturer?+
No. Sorbus Finance is an independent credit broker working with a selected panel of lenders. We have no affiliation with ride-hailing platforms and we do not supply vehicles.
Is a finance agreement tax-efficient for my taxi business?+
It depends entirely on your structure and circumstances. We do not give tax advice and there is no blanket tax or VAT benefit. Please speak to your accountant.
Bring us the vehicle, the purchase price and your trading history
If your purchase price is £25,000 or more and your business has traded for at least six months, we can look at whether a lender on our panel may consider it.