Bad Credit Business Vehicle Finance – Great New Financial Options for Start-ups

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You have bad credit, but you have a great business opportunity that requires a vehicle. It’s stopping you getting started.

Then Rent to Buy is the answer. The product is not new, but now that Australia’s major rent to buy lender is pushing aggressively into the Motor Vehicle funding market. Got an ABN, It’s all good news.

If you need a work vehicle, Ute, Van, Truck etc or just a dual purpose family and work sedan, SVU or wagon. Don’t let your bad credit history deter you.

So, how does it work?

You enter into a finance agreement that lasts for 1 year with approx. 60% residual at that time. You then have 4 options

1. Your business is now established and provided you have made your payments on time, you can convert your loan balance to a main stream lender
2. If you cannot get approved with another lender, you can pay off the residual on a 2 year contract
3. You can payout the balance and own the vehicle
4. You can hand back the vehicle, and walk away at no cost.

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Before you proceed, there are other options you may qualify for, that cost less

1. If you are a property owner with more than $100,000 equity and a clear credit file
2. If you have a 20% deposit (cash or trade in) and the vehicle is purchased from a motor dealer. You have a clear credit file
3. You have a history of good credit with your own bank and you apply to them.

How does the cost compare to conventional Bad Credit Finance?

Compared to a good credit loan, if you pay your payments on time and you can refinance your 60% balance with another lender, the total cost of ownership is only approx. 11% more.

If you compare to a bad credit loan, you will probably pay less for Rent to Buy, because you are paying a higher interest rate for the full term of the agreement.

Talking specifics

In the Finance Broker arena, Australia’s major Rent to Buy lender has appointed a limited number of “Platinum Brokers” This select few have been given guidelines to self-approve applications up to $65,000 on the spot.

Applicant’s with defaults less than $5,000,

Guaranteed approval up to $25,000 on production of

1. Signed Application Form
2. A copy of a current Drivers Licence
3. A copy of a current Medicare Card
4. A bill or bank statement with the applicant’s current address

Guaranteed Approval $25,001 to $65,000

Additional requirements to above

1. A business profile
2. Proof of income or future income (e.g. cash-flow projections, contract, bank statements)
3. If a company, Director’s Guarantees.

Applicant’s with defaults in excess of $5,000

1. Requirements as per above
2. Proof Default’s Under arrangement

If you don’t meet the above criteria, there is still a high chance of approval. The lender has a large quantity of trucks and vehicles that have been returned, that they need to remarket. The vehicles are fully repaired and serviced prior to delivery. The lender philosophy is, if we get it onto an agreement, it’s better than it sitting around.

If you have bad credit and need a vehicle, Rent to Buy will get you started. One word of caution. The payments are high for the first 12 month. You need to pay off 40% of the principal balance, compared to approximately 12% on a conventional finance agreement.

Still have more questions, talk to us!

To read more about bad credit business vehicle finance visit http://harleyfinance.com.au website or call us on 02 9553 7053 for more information.