Bus and coach finance: What do you need to know?

What is Bus and Coach finance?

Bus and coach finance enables transport operators to invest in new vehicles, upgrade existing fleets, or expand their operations while maintaining healthy cash flow. It also provides the flexibility to refinance current agreements or spread the cost of purchases over an agreed term. A range of funding options are available, including asset finance, hire purchase, refinance, and unsecured business loans.

At MAF Finance Group, our team of dedicated bus and coach finance specialists work closely with operators and transport businesses across the sector to secure the most appropriate funding for their individual requirements.

Through our tailored finance solutions, we can help fund a wide variety of assets, from single coaches and minibuses to full fleets of passenger vehicles. This ensures your business has the transport capacity and reliability needed to perform your services to the highest standard.

What type of finance is available with Bus and Coach finance?

Hire Purchase: This finance solution allows a business to acquire an asset without having to make a large payment upfront. With a hire purchase agreement, you pay a deposit, and then a series of monthly payments follow throughout the course of the agreement. Once all payments have been made, you take full ownership of the asset. VAT can also be deferred up to 3 months through a VAT deferral.

Finance Lease: This asset finance product is a long-term rent over a period of time. Your business will fund the full cost, making rental payments over the course of the arrangement, and are responsible for the asset’s maintenance throughout. At the end of the lease, you can either return the asset, ask to extend the lease, or request that it be sold.

Asset Refinance: A refinance agreement allows a business to release a large percentage of an owned assets value from their balance sheet. With the funding from asset refinance, a business can restructure existing finance arrangements, invest in upcoming projects, purchase new equipment, or pay for day-to-day operations. Throughout the agreement, the business still has operational use over the asset.

Business Loans: This type of finance provides funding for businesses that can be used for a range of needs. Whether a business is looking to purchase new assets, receive an injection in cash flow, fund growth, or restructure current finance agreements, business loans can be tailored to meet each specific business’ needs. As part of business loans, solutions such as unsecured business loans, secured business loans, and a revolving credit facility are available.

What assets can be financed through Bus and Coach finance?

School service vehicle finance: Reliable and safe transport is essential for school contracts and student travel. Whether you’re updating your existing fleet or expanding to meet new service agreements, we can arrange tailored finance for school buses and minibuses.

High-end coach finance: For operators offering executive travel or private hire, luxury and comfort are key. Our high-end coach finance solutions make it easier to invest in premium vehicles equipped with the latest features.

Care home transport finance: Specialist transport plays a vital role in ensuring residents can travel safely and comfortably. We can provide flexible finance options for accessible minibuses and wheelchair-adapted vehicles, allowing you to upgrade or expand your care home transport fleet.

Intercity travel coach finance: Intercity routes require reliable, high-capacity vehicles that can handle a high frequency of journeys efficiently. With our finance options, you can acquire or replace coaches designed for frequent travel, keeping your passengers comfortable and your services running smoothly.

Day trip vehicle finance: From educational experiences to leisure trips, day travel services rely on well-maintained, dependable vehicles. We offer tailored finance to help you spread the cost of new or used buses and coaches, so you can deliver great experiences without impacting your cash flow.

Party and event transport finance: Transport for parties, weddings, and special events demands flexibility and presentation. Our finance solutions make it easy to invest in vehicles suited for private hire, group travel, or VIP transfers, helping you meet demand and grow your business.

Tourism and sightseeing coach finance: The tourism sector depends on reliable transport for each journey. Whether you operate city tours or cross-country sightseeing routes, we can arrange finance to help you acquire vehicles that allow your business to complete its services efficiently.

How do I secure Bus and Coach finance?

To improve your chances of securing bus and coach finance, ensuring your financial profile is organised and optimised is key. Prepare an in-depth business plan, stating how you intend to use the asset. Be able to show consistent growth in revenue, as lenders want to be sure that your business will be able to fulfil the repayment requirements.

As well as this, demonstrating a healthy cash flow over a long period will also be of benefit. Again, this will demonstrate to lenders that taking on this finance agreement won’t put financial pressure on your business.

Benefits of Bus and Coach finance

• Range of financial solutions available
• Boost efficiency of service
• Manageable repayment structure
• Refinance existing arrangements
• Stabilise cash flow
• Expand fleet
• Upgrade existing assets
• Wide range of assets available to finance

Applying for Bus and Coach finance

At MAF Finance Group, we can compare offerings from a wide range of banks and funders to determine the most competitive option available.

To learn more about our finance solutions or to get a quote, fill out the form below. If you would like to speak to us directly, call us on 0115 958 6872, and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].