Vehicle finance for start up business

[egoold]

Is there any good companies out there that would offer vehicle finance for a start up company (October 09 first years accounts filed) Only looking to borrow about £7000 on a second hand car.

The problem arises from the fact that i put as much as i sensibly could do of my personal money into the company to get it up and running and as a result have several late payments on my personal credit file.

What i stupidly did not realise was when i asked my business bank for a asst finance loan for the car they ran a personal credit search on me and weren't happy. All my accounts on my personal file are 'satisfactory' and up to date its just that there were 12 missed or late payments in the last 12 months.

Is this going to be the case with most lenders and am i wasting my time trying to get finance through the company?

[fergywales]

IMHO, you are wasting your time. Any lender is going to want a PG or a DG for finance of a vehicle.

[Eric Mc]

Why do you want a car in the name of your company?

[Pharoah]

Is it a limited company or a sole trader? if it is a limited co I might be able to help. Which Asset Finance co did you apply to?

[egoold]

Yes it's a Ltd company. Maybe I am being naive but as long as I put down a decent deposit what is the risk to the finance company. Paroah any help would be great applied through the clydesdale bank/yorkshire bank. Would have no issues putting a personal guarantee or directors guarantee as the the payments will be extremely manageable and the amount I am borrowing is not silly.

[Pharoah]

Euan - I have pmed you

[Eric Mc]

I repeat - why do you want the car to be owned by the limited company?

[blindswelledrat]

Ive found car leasing companies to be hard to deal with even with good accounts behind you.
Id be pleasantly suprised if you found anyone

[mattviatura]

blindswelledrat said:

Ive found car leasing companies to be hard to deal with even with good accounts behind you.
Id be pleasantly suprised if you found anyone

Would you mind being a bit more specific?

[blindswelledrat]

mattviatura said:

Would you mind being a bit more specific?

Last time we leased a vehicle we had solid accounts for the company and literally zero negative history.
The first two we went to said "no, we are unable to offer you credit" without any kind of explanation.
Third was fine.
But bear in mind the comapny has never been refused credit elsewhere for anything as we are very low risk. I was truly gobsmacked. I don't know what thier credit tests were but seemingly far more stringent than any other type of company I have encountered.

[Foxhound]

egoold said:

Yes it's a Ltd company. Maybe I am being naive but as long as I put down a decent deposit what is the risk to the finance company. Paroah any help would be great applied through the clydesdale bank/yorkshire bank. Would have no issues putting a personal guarantee or directors guarantee as the the payments will be extremely manageable and the amount I am borrowing is not silly.

Were you dealing with Asset Finance Direct in Leeds or an Asset Finance Partner through your Business Manager?

The defaults on your credit file will be killers to Direct, would you not be better off with a Personal loan for the amount? Obviously finance would be in your own name but the Asset Finance rates tend to be quite stiff unless you're above £10,000 (minimum AF lend is £5,000)

[ringram]

I think what Eric is suggesting is that its not worth it.

Take the 0.45p/mile and avoid the BIK taxes and other nightmares associated with a depreciating asset on the books.

[mattviatura]

blindswelledrat said:

Last time we leased a vehicle we had solid accounts for the company and literally zero negative history.
The first two we went to said "no, we are unable to offer you credit" without any kind of explanation.
Third was fine.
But bear in mind the comapny has never been refused credit elsewhere for anything as we are very low risk. I was truly gobsmacked. I don't know what thier credit tests were but seemingly far more stringent than any other type of company I have encountered.

BSR, would you mind naming the funders (NOT the brokers) concerned? I'm involved in the industry and have, let's say a professional curiosity. PM is fine if you don't want to say in public.

Edited for cretinism.

Edited by mattviatura on Friday 1st April 09:19

[blindswelledrat]

mattviatura said:

BSR, would you mind naming the funders (NOT the brokers) concerned? I'm involved in the industry and have, let's say a professional curiosity. PM is fine if you don't want to say in public.

Edited for cretinism.

Sorry, there is no way on earth I could remember now as the last new cars were nearly 2 years ago.
I only know that the third company we did go with was Lex Autolease (lloyds)
THe other two were not household names, but random google results. In fact I may even be getting confused between brokers and financers too. Sorry. Crap answer.

[mattviatura]

blindswelledrat said:

Sorry, there is no way on earth I could remember now as the last new cars were nearly 2 years ago.
I only know that the third company we did go with was Lex Autolease (lloyds)
THe other two were not household names, but random google results. In fact I may even be getting confused between brokers and financers too. Sorry. Crap answer.

No problem, just interested in people's experiences with "deals" found online. We are agents for Lex and have found they're less likely to try it on at the end of your contract.

[blindswelledrat]

mattviatura said:

No problem, just interested in people's experiences with "deals" found online. We are agents for Lex and have found they're less likely to try it on at the end of your contract.

We just finished a contract on an A6 Estate about 5 months early. I was pleasantly suprised at thier charge. Before when we've handed cars back we've had to apy the full lease of regardless of how early.
I would definitely use them again.
WHich company are you?