Arranging funding for purpose-built London-style taxis, where the asset is specialist and the licensing regime is unusually strict.
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Yes, black cabs are financeable, and there is a well-established funding market for them because they are a known, purpose-built asset with an identifiable resale route. The complication is licensing: the capital’s conditions of fitness are demanding and have been revised repeatedly, and other cities that run London-style cabs set their own rules, so check the current position with the licensing authority you intend to work under. Underwriters expect heavy annual mileage from a cab and price the residual accordingly. What they care about most is whether the vehicle will still be licensable for the life of the agreement.
Used kit: Yes — the used black cab market is active and mature, and older purpose-built cabs are fundable provided they remain licensable where you intend to work.
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Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).
A London-style cab is not a general-purpose car and cannot be funded like one. The conditions of fitness — tight turning circle, wheelchair accessibility, partition, specified dimensions — mean the eligible model list is short, and requirements differ between the capital and the other licensing districts that run this body style, so confirm the detail locally. Emissions-led policy, including ULEZ and the wider Clean Air Zone programme, moved this market decisively toward range-extended and battery-electric cabs and left older diesel stock with a narrower future. Personal underwriting applies to the single-cab driver, with badge tenure and takings evidence doing much of the work; a garage running cabs on rent is assessed on its accounts. Motor funders that will not lend against a hire and reward plate rule themselves out entirely, so the job is finding the ones that specialise.
Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.
| Machine | What it is |
|---|---|
| LEVC TX | Range extended purpose-built black cab |
| LEVC TX4 | Older diesel black cab for trade buyers |
| Nissan Dynamo | Electric purpose-built taxi |
| Mercedes-Benz Vito Taxi | Conditions of fitness compliant taxi |
| LEVC TX Icon | Higher trim purpose-built black cab |
| LEVC TX Vista Comfort | Mid-trim black cab for daily plying |
| Peugeot E-Traveller | Electric MPV licensed outside London |
| Ford Tourneo Custom WAV | Accessible taxi conversion for licensing |
| Vauxhall Vivaro Life | Accessible people carrier for cab work |
| Toyota Proace Verso taxi conversion | MPV converted for licensed cab use |
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Green badge and yellow badge drivers, mostly, and small proprietor firms running a handful of cabs. The usual trigger is coming off a long-term rental with a cab garage, or an older diesel cab reaching the point where the authority will no longer re-licence it. Rental drivers in particular tend to approach us with several years of weekly payment history and nothing to show for it, wanting the cab in their own name.
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Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.
Slightly. The powertrain is more complex and the battery is a significant part of the value, so underwriters look at warranty position and remaining coverage. Against that, an electrified cab has a clearer long-term licensing future in emissions-controlled cities, which supports the residual. On balance it tends to help rather than hinder.
It can, and it is worth gathering. Consistent weekly rental payments over a long period are strong evidence that you can meet a comparable commitment, and a reference from the garage carries weight. Bring bank statements showing the payments going out rather than relying on a verbal account.
Not necessarily, but you do need to be licensed to work the cab you are buying. Suburban and out-of-town badges are recognised. What a funder wants to see is a valid driver licence for the district, a vehicle that will be plated there, and income that supports the agreement.
Often yes, though there are extra checks. Private purchases need clear title, an HPI check and usually an inspection, and some funders prefer a trade invoice. Where a private deal makes sense we structure it so the funds go to the seller on completion rather than through your own account.
There is no universal cut-off, because cabs are built for it. A purpose-built taxi with six figures on the clock and a full service record is a more comfortable proposition than a lightly used private car pressed into taxi work. Documented maintenance is the deciding factor far more often than the odometer.
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Not an offer of finance. All finance is subject to status, affordability and lender approval.
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
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