Applying for van finance is much like applying for a credit card or loan so along with your vehicle order, you will also need to undergo a credit check as part of the finance application process.
Following an accepted order, you will be asked to fill out a finance application form. The information you supply on this form is then used by the lender to make a decision about whether or not to lend to you.For both business and personal finance applicants, most funders ask for a good to excellent credit score in order to be accepted for van finance however it is worth pointing out that no lender uses your credit score alone to approve or decline you for finance. Often many other factors come into play such as your ability to make regular payments on time and any other debts you may have.
Depending on whether you are applying for business van finance or personal van finance, you will be asked to fill out a Business Finance Application form or a Personal Finance Application form.
If you are a sole trader, partnership, limited company or LLP applying for a business contract hire agreement, you will be asked to fill out a Business Finance Application form. On this, you will be asked to provide the following information:
Please note, if you are applying on behalf of a limited company, you are confirming you have authority to authorise a credit search in the name of the company and each director.
In certain cases, such as a business being less than two years old or the applicant having been refused vehicle finance before, you may be asked to provide additional information in certain circumstances. We might ask you for:
If you are unsure if you eligible for business van leasing, take our brief interactive questionnaire below to find out if you are likely to be accepted for finance.
If you are a private individual applying for a personal contract hire agreement, you will be asked to fill out a Personal Finance Application form. On this, you will be asked to provide the following information:
Additional information might be also required, particularly if you’re not currently in full time employment or if you’ve been with your current employer for less than five years. We might ask you for:
This information will be used to ensure you are able to afford the lease you have applied for.
While many people dislike answering questions about their credit history, it is an important part of the financial application process. The information you supply on the Finance Application Form is used by the lender to contact credit reference agencies in order to determine an overall credit score for you or your company. Information they may check includes:
Your credit score is then compared against the lender's threshold to determine if you are a viable risk.
As we mentioned before, most funders ask for a good to excellent credit score in order to be accepted for van finance but it is worth pointing out that no lender uses your credit score alone to approve or decline you for finance. Often many other factors come into play such as your ability to make regular payments on time and any other debts you may have.
On average, most funders respond to a credit application within two working days however during busy periods, it can take up to five working days to receive a response from the funder. We will contact you to let you know if you have been approved for finance by telephone or email.
Unfortunately not everyone is eligible to lease a new van. If a lender refuses you credit after checking your credit reference file, they won't tell you what your score is but they must give you the details of the credit reference agency they used.
According to the Citizen Advice Bureau there are three credit reference agencies that are used on a regular basis by lenders - Experian, Equifax and CallCredit. You can approach the credit reference agency direct to view your credit file but you may be charged a small fee (usually £2.00) to view you statutory credit report.
If you have been declined vehicle finance, other funding options may be available to you depending on your circumstances. Your sales consultant will be able to discuss these options with you at enquiry stage.
The Citizen’s Advice Bureau also offers a wealth of information about borrowing money and what you can do if you have been refused credit. Visit the Citizens Advice Bureau for more information.
If you’ve taken our quiz and are likely to be eligible for van finance, you can: