We hope this guide helps you if you are new to credit. Its not a be all and end all just our take on things. There are always exceptions just like anything in life.
Sole Traders & Partnerships
Finance companies can often make automated decisions here. They will have a point scoring system and each have their own considerations. Most people have heard of Experian for credit checking
– Experian check
– No missed payments even for something small and silly
– No CCJ and adverse. For example an outstanding gas bill from three years ago you missed.
– On electoral register – Register to vote
– Traceability. Often customers especially after a divorce for example live in many places.
If you had a bank statement sent to a parents house this is enough to be traced.
– Drivers license. Some finance companies require this. Also be sure that you have told us your driving license address in advance.
– Banks use their own credit check rather than experian. Thus even if you have a not perfect score with Experian you may well still get credit with some of our other bank related funders.
A Limited Company credit score is checked by an Adelphi Score which is the Experian version for companies. Of course new start companies won’t have one. Consider a few examples of a Limited Company. They look for payment history in the same way and CCJ.
Net Worth On Companies House
This is perhaps the main consideration. Its public information and if your company has high net worth credit is easier and oppositely too. Generally you can borrow 25% of your company net worth. If you already used that for buying another vehicle it may be harder.
They also look at the directors. If one or more of the directors has a lets say “colourful history” many lenders will still say no. Such as closing down lots of companies for example.
A company with say 10 years accounts, a great Adelphi score. It should in theory pass as long as the company hasnt over borrowed with other loans. A net worth of 500,00 K
2. Younger company
A company three years old with three sets of accounts and a net worth of 50,00. Its borderline
pass. It does depend on the strength financially of the director(s). Often they will ask for a personal guarantee.
3. A new start company 14 months old . There are no accounts, so zero net worth. There is no previous sole trader company. Its unlikely that the company will get credit without a guarantor
Best Ways Of Van Finance
At Swiss we have literally most funders on the market and will introduce you to the best value. Our aim is to help you grow your fleet
and become your natural choice to replace vehicles.
– Van Hire purchase – VAT down and 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.
– Van Leasing
Small deposits from one payment in advance to 50% of the van price. Its 100% tax deductible so great fir new start companies that have start up costs. Is the favourite way for many manufacturers so often attracts the greatest discounts. Its more flexible than contract hire.
– Lease Purchase
Not all manufactures support this method so often pre registered vans are the way to go. This is because you take ownerships automatically and they worry it will affect residual values. Ask us first as often you cant get a private plate on this method. Its very much like HP but more suited to VAT registered companies as they can claim the VAT back of course. If you are flat rate VAT this is the one for you.
– Van Contract Hire
Great for larger fleets that want to control costs but its seldom sold to smaller users as its quite restrictive. Many ask for it because they have asked for it in the past. Some mistakenly think there is no credit check check but there is.