Is Your Business Eligible For Finance?
Once you’ve decided you want to finance a vehicle, and you’ve thought about what the budget is, how much deposit you want to put down, the term and mileage, you now need to think about whether you or your business is eligible for financing.
All types of businesses can apply for finance including sole traders, partnerships and limited companies.
You can apply for business finance if you are buying a vehicle on the business for an employee to use both personally and for business use but, bear in mind there could be an income tax liability for the employee.
Once you know you’re eligible, you now need to think through whether you’ll be accepted for finance.
The business will need to go through a credit check as part of the process. The finance provider will consider the application by checking all the details and also check the credit agencies. Other things they look for are:
If you are a start-up, it’s more about your personal credit than the business (because the business has no history to evaluate).
You may need to provide proof of trading or a Directors’ Guarantee (where you personally are liable if the company can’t fulfil the agreement).
