Can I Get Business Vehicle Finance with a Bad Credit Score?

Can I Get Business Vehicle Finance with a Bad Credit Score?

If you are a freelancer working on your laptop from home, there’s a slim chance that you will need a vehicle for business purposes. However, if you are a homegrown catering service, gradually expanding the business, you might need a car for deliveries. If not at the moment, then in the future, your business needs will compel you to get a vehicle. So, can you afford it? Do you have sufficient cash to pay for a new or used car? There’s no need to fret if you are low on your finances. Enterprises often face a cash crunch, making expenses such as buying a car difficult. Here’s where business vehicle finance comes to your rescue. No need to worry if you have a questionable credit history connecting with the right finance broker can fix that, gaining you access to funds to buy the vehicle. Let’s explore further on that topic.

What Entails in a Business Car Finance?

Business car finance is not the same as a typical car loan. The first parameter of the loan approval is that the vehicle is used mainly for business purposes. You cannot buy a car for personal use with business car finance, and it’s evident from the finance term.

A business car loan allows you to buy;  Fleet cars

   

Commercial vehicles Commercial trucks Utes for commercial use Specialized cars for commercial purposes

You can buy both used and new cars using this financing. If you are thinking of collateral, well, the vehicle itself acts as security against the loan, and you can claim ownership from the very moment you buy the car. To apply for business vehicle finance, you need the following eligibilities;  An active Australian Business Number  Residency or citizenship in Australia  Be at least 21 years old.

Documentation and a credit score are not always necessary to acquire funding, which brings to the matter of bad credit business vehicle finance.

What is a Bad Credit Business Car Finance?

The term is self-explanatory! If you cannot secure funding the traditional way to buy a car for business purposes, you can apply for bad credit commercial car loans. This is designed for small and new business owners who struggle with steady cash flow. Where traditional banking institutions fail to serve the entrepreneurs, private lenders and finance brokers come into the picture, offering financing solutions with competitive rates and flexible terms. How are they different?  Interest rates can be higher compared to conventional car loans.  Loan terms typically range between 1 and 7 years, but they might vary as per the lender.  The lender might cap the credit limit to a certain amount.  Although a deposit is not mandatory, some lenders might demand it.

On a Concluding Note The thing about bad credit business vehicle finance is that you will not get favourable terms and rates everywhere. Hence, going from one lender to another can be daunting and time-consuming. It is best to avail the services of a reputed finance broker like Broc Finance in Australia. A finance broker will assess your credit score and other details and find you the perfect lender for approval and access to business vehicle finance. Check out the website, to know more about these business financing solutions.

Source: https://www.brocfinance.com.au/blog/can-i-get-business-vehiclefinance-with-a-bad-credit-score/