We know the importance that vans have for businesses across the UK. Afterall, they are the driving force behind many courier businesses and commercial trades.
If you are just starting out, a lease deal might be the best option for you as it allows you to drive away in a brand-new, top-of-the-range vehicle in exchange for manageable monthly payments.
However, having poor credit can make qualifying for finance difficult. But there are ways in which you can finance a van with bad credit.
Avoid Mainstream Lenders & Banks
The majority of lenders on the highstreet limit their services to unsecured personal finance loans. These loans are only offered based on good credit rating, so if your credit rating is poor, the possibility of achieving finance is very slim. However, commercial lenders, such as Dawsongroup Finance, often look at the bigger picture and offer more finance options than mainstream lenders and banks.
Consider Hire Purchase
Rather than seeking a loan, have you considered a hire purchase instead? Hire purchase is an agreement in which you hire a van with an option to purchase it at the end of the repayment term. This term is usually around three years and involves putting down a deposit and paying monthly reimbursements.
Hire purchase packages are designed to ensure that the monthly payments you make are affordable based on your budget and needs.
There is less of an emphasis on credit checks with this option, making hire purchases more achievable with bad credit. Increasing the size of your deposit will also assist in ensuring you achieve a hire purchase as you are lowering the risk to the finance company.
Need Finance with Bad Credit?
Not only are we able to offer hire purchase finance packages for your business, we are also able to source the perfect van as well. Our sister company, Dawsongroup Vans, have a wide variety of commercial vans available for all types of requirements. We can source anything from one van, to an entire fleet, all on a cost-effective finance package. To speak to our team, by emailing info@dgfinance.co.uk or calling 01425 474070.