Can my business take over a lease? Who funders will transfer a business lease to
Limited company, partnership or sole trader? Which types of business funders will transfer a lease to, what they check, and what to do if yours doesn't qualify.
Finding a lease you'd like to take over is only half the job. The funder that owns the car also has to accept your business as the new hirer, and many funders only transfer business leases between certain types of business. Check this before you register interest, and you'll save everyone time.
Why the type of business matters
A business lease transfer (a novation) moves an agreement from one legal entity to another. Alphabet describes it as the transfer of a non-regulated agreement between legal entities. Under UK consumer credit rules, sole traders and small partnerships are treated more like individuals, so many funders keep their transfer process to companies and larger partnerships.
Alphabet publishes who it will and won't transfer to:
- Eligible: public or private limited companies, unlimited companies, and large partnerships with four or more partners
- Not eligible: private individuals, sole traders, and small partnerships with three or fewer partners
Other funders set their own rules, and some look at each request individually. Always ask the funder of the lease you're interested in.
If you're a limited company
This is the most straightforward case. Expect the funder to run a business credit check, much as it would for a new lease. Alphabet, for example, asks for:
- Your latest full accounts, or an opening balance sheet if the company is newly formed
- A director's name, date of birth and home address for fraud and credit checks
- Possibly a director's guarantee
A young company can still apply. An opening balance sheet is accepted where there are no full accounts yet, although the funder may want extra security.
If you're a partnership or LLP
Check the funder's wording. Alphabet accepts partnerships of four or more partners but not smaller ones. If your business is changing from a partnership to a limited company, any leases it already has will need transferring to the new company too.
If you're a sole trader
Many funders won't transfer a business lease to a sole trader. Before you spend time on a particular car:
- Ask whether the funder will consider a transfer to your type of business
- Talk to your accountant if you're thinking about trading through a limited company for other reasons anyway
- Look at a new lease instead. Our New Lease Deals are business contract hire, and when you register interest, tell us your business type and we'll explain the options.
Personal leases don't mix with business leases
Business and personal leases are different types of contract. A business lease can't be transferred to a private individual, so a director can't take over the company's car lease in their own name. Going the other way, from a personal lease into a company, is unusual: a few funders consider it case by case, so ask.
How Swap-a-Lease helps
Every lease transfer on Swap-a-Lease is between businesses. Browsing and registering interest are free. When you register interest, tell us your business type so the right questions go to the funder at the start. You deal with the seller through Swap-a-Lease, and the funder makes the final decision on the transfer.
Next step
See which funders publish their transfer rules in our Funder Fees table, read taking over a business car lease for what to check on the car itself, or post a Wanted request describing the vehicle, budget and term you need.
Based on Alphabet UK's published novation guidance, checked in November 2026. This is general information, not legal or financial advice. Each funder sets its own rules, so confirm with the funder before you commit.