Getting Credit

Getting Credit

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We hope that this guide might help you if you’re new to credit. It’s just our take on things, so please bear in mind that there will always be exceptions. Just like with everything in life! 

Sole Traders & Partnerships 

Finance companies can often make automated decisions here. They will have a point-scoring system, and each company has their own considerations. Most people have heard of Experian for credit checking.


In an Experian credit check, the following things are assessed:

  • Whether you’ve ever had any missed credit payments even if for something small and silly
  • If you have any CCJs (County Court judgments) or Adverse credit history (e.g., if you have an outstanding gas bill from three years ago)
  • If you’re on the electoral roll. If not, you can register here.
  • If you’re traceable. Sometimes people have multiple addresses, particularly after a divorce. However, they can trace you from a bank statement sent to your parents’ house!
  • Finance companies often require a valid driving licence registered to your current address. (On this note, please be sure to tell us the address on your licence.)
  • Many banks use their own credit-checking service instead of Experian. It’s possible that even if your Experian score isn’t perfect, you might still get finance through our bank-related funders. 

Limited Companies 

A Limited Company’s credit score is checked by a Delphi score; this is the Experian rating for companies. However, a very new company won’t have a credit score. The assessment for a Delphi score is more or less the same as for an Experian rating: payments history, CCJs, etc., are all examined.

Net Worth On Companies House 

This is perhaps the main consideration. Your company’s net worth is public information, and if it has high net worth, obtaining credit will be easier. The opposite is also true. Generally, you can borrow up to 25% of your company’s net worth. If you’ve already used that to buy another vehicle previously though, it may be harder.


Credit checkers will also look at the company’s directors. If any of the directors have a “colourful” history, lenders will often say no. This might involve, for example, starting and then closing down lots of companies.

Examples

  • An established business
    A company with 10 years of accounts and a great Delphi score. In theory, there should be no trouble getting finance as long as the company hasn’t over-borrowed on other loans.
  • A younger company
    A company that’s three years old with three sets of accounts and a net worth of £50,000: this is a borderlinepass. Often, much will depend on the financial strength of the director(s). Lenders will frequently ask for a personal guarantee.
  • A new company
    A company that’s maybe 14 months old. There aren’t really any accounts to speak of, so there’s no verifiable net worth. Especially if there’s no previous sole trader company, it’s unlikely that the company will get credit without a guarantor.

You Can Always Try

The only sure-fire way to know whether or not you’re eligible for finance is to try. Give us a ring, have a chat, and we’ll do our best to advise you. We help people find the best deals for their circumstances every day, so we may well be able to help you too.

Hopefully this guide has cleared things up a little, but if not, or if you have any questions, we’re always at the other end of the phone line. Well, almost always: we do sleep sometimes!

7  Ways Of Van Finance  

Most of our competitors tend to be leasing franchises that all sell the same “specials” that tend to be basic vans purchased at the same time by the hundred. Often the vans you are offered have sat around a while. They tend to prefer contract hire as it locks you into them for some time.
We work via banks rather than by these franchises so we are not as tied in so can offer more of an array of van finance deals. This is why our vans are fresher and  deals better. There is no leasing franchise taking a cut.
All methods are tax deductible. All methods you should really have GAP Insurance Policy in case the vehicle is written off. Many commercial insurance policies will not pay new for old.

  1. Hire purchase – VAT down or VAT deferred . HP is a great way to actually buy a van. If your VAT registered claim the whole VAT amount back within three months.   Click Here.
  2. Contract Hire – This is more popular on cars than vans. Many customers think there is no credit check but there is. Its better for large fleets and doesn’t offer any advantage for less than fleets of 10. If you want to change over 10 vehicles in one go and they are basic then please get in touch. Click here for contract hire.
  3.  Lease purchase. Not always the best deal as some manufacturers offer discounts  that cannot be used on lease purchase. Its just like HP but with a final payment and once it’s paid you get automatic ownership. It’s better once again for VAT registered businesses especially if you want a T6.1 for example to keep at the end and convert to a motorhome. Sometimes a pre registered van is cheaper. Click here
  4. Finance Lease – By far the most popular method as it attracts the lowest payments . It’s gets the largest discounts from manufacturers same as contract hire. However you can fit accessories many of which you cant n contract hire
  5. Operational Lease – Is just like finance lease however you can hand back the vehicle at the end. Some of our Mercedes vans are like this
  6. Asset Finance – We can finance many products not just vans
  7. Credit Limit – Pre approve your van purchases 90 days in advance. Useful  for example if you have a contract tender.

GAP Insurance

If you write a vehicle off in say year one the insurance company may well pay you less than the settlement value. Thus through no fault of your own you may need to buy a older cheaper van to reach the same monthly payment. Click Here to buy a GAP Policy

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