When business operators find themselves being classified as 'bad credit' it can be paralysing to their business. A bad credit classification can make it very difficult, if not impossible, for many to access the funds through the traditional lending sources. Without cost-effective finance to purchase new trucks and equipment it can be extremely challenging to say the least.
Jade offers options and possibilities for truck operators with bad credit. As expert and highly experienced lenders, we have the capabilities and connections to assist businesses seek out possible options for cost-effective loans to purchase new trucks.
We welcome enquiries from all types of businesses including sole traders, family businesses, partnerships, SMEs and larger corporate operations.
Bad Credit Classifications
Bad credit loans are not a type of loan, it is a classification of the loan applicant. Bad credit is used as a broader term to cover bad credit history, general credit issues, low credit score and poor credit profile.
The primary reason for this situation is often a business defaulting on payments or consistently making late payments. Various entities such as lenders, finance companies, utilities providers, the ATO, government bodies, and other organizations can all record a negative mark against a business for its failure to meet payment deadlines.
When the business seeks a new account, credit, or finance, the lending company examines its credit history. If the credit history appears unfavourable, the business may face penalties. This could result in finance applications being rejected or being offered loans with extremely high interest rates or stringent and challenging conditions.
Businesses that use ‘last resort’ lending with exorbitantly high interest rate loans which are clearly not feasible for the operation, can further exacerbate their difficult situation. Before resorting to what might appear the last resort, contact Jade Truck Finance to discuss the possibilities.
The Possibilities
Considering a truck loan but facing rejection? You may have approached every bank and finance company you know without success. The question arises: how can Jade offer a different outcome? Our edge lies not just in our extensive industry knowledge but also in the unique access we have to certain lenders.
Traditional banks operate with rigid lending guidelines, showing little flexibility. On the other hand, Jade Truck Loans is affiliated with a broad spectrum of non-bank lenders. Many of these finance companies aren't household names. In fact, they often work exclusively through specialized industry lenders and finance brokers like Jade.
Now, this is where things get interesting for potential borrowers. These non-bank lenders don't operate under the constraints that bind major banks. As a result, they exhibit greater flexibility, especially when dealing with applications that might be labeled as 'bad credit' by conventional institutions. When you reach out to Jade, your consultant will meticulously review your profile, offer tailored guidance, and possibly suggest ways to enhance the appeal of your truck loan application.
Furthermore, for those who are keen to Compare Truck Financing Rates For Loan Types, our extensive network provides a platform to source and compare multiple options. We liaise with the lenders that, in our estimation, are most likely to approve your application. Our prowess in negotiations, combined with a deep-seated understanding of the truck finance market, equips us with a formidable advantage in these discussions.
While we can't guarantee outcomes, we can promise our unwavering commitment to ensuring our customers secure the most viable truck loan deal.
Bad Credit Truck Loan Products
As mentioned above, bad credit refers to the application classification, not an actual type of loan. If made a loan offer by a lender, a bad credit truck loan can be any of the commercial finance facilities available for the acquisition of trucks, subject to individual lender requirements.
These include:-
- Chattel Mortgage for truck & trailer finances
- Commercial Hire Purchase
- Truck Leasing
- Rent to Own for trucks
Leasing and Rent to Own are off balance sheet loan types which are sometimes preferable by businesses with bad credit as these are considered to ‘improve the look of the balance sheet’. The choice of loan product should be made in consultation with your accountant or financial advisor.
Loan Expectations
If granted a bad credit truck loan, there are a number of possible conditions and features you could generally expect the lender to include in your loan.
These may include:-
- Higher interest rate than offered to good credit applications. That is the rate currently advertised by Jade Trucks Loans.
- Threshold on the maximum amount of the loan. If 100% of the purchase price of the truck is sought, the lender may request a deposit be paid to reduce that to less than 100%
- Additional security as well as the truck itself to be used against the loan. This may take the form of property or other assets either owned by the business owner or business itself.
- Threshold on maximum loan terms.
Your Jade consultant will be working hard to achieve a loan offer with conditions that best meet your requirements.
Preventative and Restorative Measures
The economic impact of COVID-19 will likely result in many businesses technically moving from a good credit to a bad credit position. Lenders may tend to view this unique operating environment more favourably compared with under normal circumstances. So if you find yourself with a bad credit rating due to COVID-19, contact us to discuss your options.
- Outside of those instances, businesses and individuals can review their credit profile and take actions to fix any problems which may improve their rating.
- If you are currently saddled with a loan that is just ‘not working for you’ and is causing your credit issues, speak with Jade about refinancing.
- If you’re having problems making your payments because your customers are always late paying you, we may have other finance options that be a possible solution.
To discuss your bad credit truck loan options, contact Jade Truck Loans on 1300 000 003
DISCLAIMER: ALL INFORMATION PROVIDED IN THIS ARTICLE IS INTENDED AS GENERAL INFORMATION PURPOSES AND NOT AS AN EXCLUSIVE OR SOLE SOURCE FOR MAKING FINANCIAL DECISIONS. INDIVIDUALS SHOULD SOURCE INDEPENDENT ADVICE FROM A FINANCIAL ADVISOR IF THEY REQUIRE SPECIFIC DIRECTION IN RELATION TO THEIR CIRCUMSTANCES. CONTENT MATERIAL, DATA, SPECIFICS, PRODUCT FEATURES AND OTHER INFORMATION IS SOURCED FROM A RANGE OF SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS OF SUCH DATA.
