Are You Eligible for Van Leasing?

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.

Business lease customers

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:

• Company details – including name, address, company reg. number and annual turnover
• Director details – including name, date of birth and marital status
• Business bank details – including bank name, account number and sort code

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.

Additional information that might be required

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:

• 3 months’ business bank statements
• Management accounts
• A director’s guarantee

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.

Personal lease customers

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:

• Personal details – including marital status and number of dependents
• Address details for the past five years - This information is used to verify your identity and the credit histories of anyone you are financially connected with.
• Employment details for the past three years – This information is used to determine how your present income and expenditure is likely to evolve over the period of your lease.
• Your bank details – This information is used to determine how you have managed your existing accounts and your ability to make payments on time. No money will be taken from your account without your permission.
• Your monthly income and expenditure – This information is used to ensure you are comfortably able to afford the finance deal for which you have applied.

Additional information that might be required

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:

• Further detail about your employment history
• Further detail about your monthly income and expenditure

This information will be used to ensure you are able to afford the lease you have applied for.

Why is so much information required?

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:

• Addresses - via the Electoral Roll, including everywhere that you have lived
• Public Records - including any county court judgments (CCJs), bankruptcies, home repossessions and IVAs.
• Bank accounts and loans - including financial management and repayment timings
• People you are financially connected to - including joint credit applications and joint accounts.
• Previous searches on your credit file – including the companies and organisations that have looked at information on your file in the last 12 months

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.

I've been declined finance, what are my options?

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.