Will I be Able to Secure Van Finance with Bad Credit?

If you are thinking about financing your next commercial vehicle but are worried that your credit rating will prevent you from securing a deal, this article should help you understand your options.

What is Bad Credit?

First things first, what do we mean when we talk about bad credit? Before finance providers agree to lend money, they need reassurance that it will be paid back on time, so they will look at your credit history to determine whether or not you are a reliable borrower.

Missed or late payments towards credit cards or loans, arrears, defaults and CCJs are all factors which contribute to bad credit, as they indicate that a borrower is unreliable. As harsh as it seems, no history of loans can also have a negative impact because there is no evidence to prove that you are trustworthy when it comes to making repayments.

Can I Still Get Van Finance?

If you are concerned about bad credit preventing you from securing van finance, don’t lose hope just yet! While finance is never guaranteed, there are a number of lenders which specialise in helping people with bad credit.

These lenders will look at your specific circumstances to ensure that a finance agreement will not leave you in financial difficulty and works for both parties. A tip to boost your chances of being accepted is to increase the size of the deposit you put down on a van. This will lower the amount due to pay each month, presenting less of a risk to your lender.

At Eden Commercials, we have helped plenty of customers to secure van finance with bad credit, and we will be happy to talk you through the options available to you.

Get in touch to speak to one of our experts or apply for van finance online!