Can good things really come from bad situations? When you’re talking bad credit truck finance then yes, it is possible. Businesses with credit issues can achieve good, workable loans on new truck purchases by making the right moves on the who and the how of bad credit truck finance.
The lending options for operators with a bad credit profile may appear limited to two extreme and unworkable choices. At the one extreme, there’s the bank that gives you a flat ‘NO’ to your application. At the other extreme is the, shall we say, ‘opportunistic’ financier that will offer loans to anyone but at an exorbitant interest rate and possibly including extra high fees as well. Both clearly unworkable for most businesses.
Fortunately, with our extensive experience in the finance market, we can provide the best truck loan interest rates. The option in the centre is just right. We can source bad credit truck loans which can be, as expected, at a higher interest rate than loans for operators with good credit but are definitely not at ‘opportunistic’ rates.
Bad Credit Truck Loans: Overview
A bad credit rating can occur to many individuals and businesses for a range of reasons. Some due to their own decision-making and others for reasons outside of their control. It can be a situation that holds back many from achieving business objectives and personal financial objectives. For small businesses and sole traders where business and personal finances can be closely linked, the situation can have significant impacts if not addressed.
A poor credit rating is unlikely to actually automatically improve if you don’t do anything about it. Some bad entries on a credit report may have a time limit and some can be removed via the fixing your credit profile process. One way to improve a poor rating is with new, good performance entries. That can be a challenge. If you have a poor rating, achieving new finance can be difficult but not impossible. More information here.
Using a new truck loan to actually improve a current bad credit rating may be a suitable strategy. Adhering strictly to the payment schedule can result in good reports and ratings from the lender which may contribute to improving a credit profile for future finance deals.
Truck Finance Lender Options
Selecting the right lender is key. Firstly, going it alone in trying to source bad credit finance can be counter-productive. Many in this situation may think that assistance is not available to them so they plough on solo. Applying to the bank after bank, lender after lender, and receiving either rejections or unworkable offers. Not realising that these applications are reported to credit agencies and can impact negatively on a credit profile.
Using a finance broker style lender such as Jade Truck Loans can offer multiple benefits to businesses with bad credit. With multiple accreditations with banks and non-bank lenders, we have access to a wide range of lenders and our approaches to source quotes do not reflect on the applicant’s credit profile.
Our lenders include non-banks which are known for their greater flexibility when compared with the major banks. The major banks are great lenders for many purposes and many people. But their banking status means they must adhere to strict guidelines. Non-bank lenders do not all operate in that way and therefore are a better source for bad credit truck finance. But many of these lenders only operate via their network of brokers and lenders like Jade. Our services open these channels for our bad credit customers.
Many lenders are understanding of the circumstances surrounding bad credit and will offer workable solutions at good interest rates.
Truck Loan Options
A bad credit truck loan is not an actual finance product but a category designation of the loan application. When a bad credit application is approved for finance, they can, in most cases, access their choice of loan product.
When approved, our bad credit loan choices include:-
Applicants should review the features and benefits of each in the context of their individual business requirements.
What to expect
By definition, bad credit applicants are considered as higher risk than those with a good credit profile. As such, a higher interest rate loan can be expected than would be offered for good credit applicants. Your Jade consultant negotiates on your behalf to achieve a rate that can work for your business.
Each application is reviewed and assessed on an individual basis and other loan conditions may apply. These may include a request by the lender to lower the loan amount requested so the loan to truck value ratio, that is the amount requested against the price or value of the truck, is more acceptable.
No deposit truck loans are available in many circumstances.
How We Can Assist You With Truck Finance
In addition to the benefits noted above, we can provide invaluable assistance to those seeking bad credit truck loans. Your Jade consultant makes all representations on your behalf to the lender, providing professional lending expertise and sharp negotiating skills to achieve the best outcome.
Your consultant will structure your loan to best achieve an outcome that works with your cash flow and will contribute to achieving an improved credit rating. And we assist with the paperwork to process and finalise the finance.
Having a bad credit profile does not have to mean the end of the road for your trucking business. Have a confidential, no-obligation conversation with us to discuss what positive prospects we can achieve for you.
Contact us on 1300 000 003 for a quote on truck lending.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.