Van leasing with bad credit

Can I get a lease van with bad credit?

Let’s start with a simple answer to the question – can I get a bad credit van lease? Yes!

Lacklustre scores can pose some challenges, but it doesn’t mean you're out of the running. At Leasing Options, we believe every business deserves a chance, which is why we offer tailored finance solutions to accommodate all kinds of credit scores.

What are the eligibility criteria for van leasing?

Certain basic criteria apply to be eligible for a van lease, regardless of your credit history. Here's what you need to know:

Your company must be one of the following:

• Limited Company
• Sole trader
• PLC
• Partnership
• Limited Liability Partnership
• Charity
• Embassy

Additionally, new businesses under 12 months old may be required to submit:

• 3-6 months of business statements
• A director’s guarantee (only applicable to limited companies)
• An opening balance of the business account
• Management accounts, if available

Ensure you have access to this information before applying for a bad credit van lease. This will help fast-track the process and get you into the driver’s seat sooner.

Will I have a credit check when taking out a van lease?

Yes, a credit check is a standard requirement for van leasing. It helps lenders assess your creditworthiness and ability to make lease payments.

Rest assured, you’re not alone – every business or individual applying for a van lease will undergo a credit check as part of the application process.

How do lenders access your credit history?

UK lenders rely on three primary credit agencies to generate reports – Equifax, Experian and TransUnion. These agencies collect and maintain financial data on individuals and businesses, including credit accounts, payment history and public records.

When you apply for a van lease, finance companies may request your credit report from one or more of these agencies. Here’s a closer look at the trio and how they evaluate your creditworthiness:

Equifax:Equifax is one of three leading credit reference agencies in the UK. They gather information from various sources to compile credit reports, which lenders use to assess applications. Checking your Equifax credit report can provide valuable insight into your financial standing and help you identify areas for improvement.

Experian:Experian is another major reporting agency that issues credit reports to individuals and businesses. Lenders use Experian data to assess your risk as a borrower and determine eligibility for loans, credit cards and auto leases. Monitoring your Experian credit score can help you track changes in your profile and detect inaccuracies that could affect your status.

TransUnion:TransUnion is the third prominent credit reference agency in the UK. Like Equifax and Experian, TransUnion collects information from various sources to compile credit reports.

What happens if my business has bad credit?

Bad credit doesn’t put van leasing deals out of reach for your business. Even if you’ve faced financial challenges in the past, an experienced broker can work with you to find a solution that fits your needs and budget.

Expect to provide further documents to support your application, such as recent bank statements or audited company accounts.

What happens if I have bad credit?

If you’re the director or owner of the business and have bad credit, it could impact your van lease application. However, it’s not necessarily a deal-breaker. At Leasing Options, we understand that personal financial circumstances can vary.

With this in mind, we take a holistic approach to every application. Instead of shoe-boxing you as a risky borrower, we look at the bigger picture and consider factors beyond your credit score. We’ll then do everything we can to match you with an open-minded lender.

How can I improve my credit score?

If you know, or suspect, you have a bad credit history, it’s time to get proactive. It is possible to improve your rating and it’s easier than you might think. Here’s how to boost your chances of securing a van lease with bad credit:

• Check your credit report: Monitor your credit report for errors and follow up on inaccuracies. Even the smallest discrepancies can have a big impact on your score, so it’s always worth pursuing
• Pay bills on time: We get it – staying on top of bills can be hard. If possible, set up automatic payments or reminders to ensure bills are settled on time and avoid negative marks on your credit report
• Minimise credit utilisation: Try to keep your credit card debt as low as possible, relative to your limits. High utilisation (maxing out your credit card) can negatively impact your score
• Diversify credit types: Diversity is like a gold star on your credit report. Different credit types, such as credit cards, direct debits, loans and mortgages, can help demonstrate responsible financial management
• Limit new credit applications: Avoid opening multiple new credit accounts within a short period. This can raise red flags with lenders and suggest financial instability

Even if you decide not to apply for a van lease right now, it’s worth taking steps to improve your rating. Boosting your score will help support your business in the long run and improve your chances of securing loans in the future.

Should I take out a van lease with bad credit?

A bad credit van lease may seem daunting, but it's entirely achievable with the right guidance and support. At Leasing Options, we're dedicated to helping businesses like yours overcome financial hurdles and access the transportation solutions they need.

By understanding the eligibility criteria, addressing common concerns and taking proactive steps to improve your score, you can pursue van leasing deals with confidence, even with bad credit.

“Taking out a van lease with bad credit can still be a viable option for businesses in need of a reliable set of wheels. At Leasing Options, we understand the challenges that come with bad credit, and we’re committed to finding flexible solutions that meet your needs,” says a Leasing Options representative.

“Our team of experts will work with you every step of the way to explore leasing options tailored to your unique circumstances. Don't let bad credit hold back your business - contact us today and let's discuss how we can help you get behind the wheel of your dream van.”

Stretch your budget with van leasing

Business vans can vary widely in price depending on factors like brand, size and specifications. On average, expect to pay anywhere from £15,000 to £30,000 or more for a new van in the UK.

Popular models include the Ford Transit, Mercedes-Benz Sprinter and Volkswagen Transporter, among others. Used vans are also an option and can offer big savings for budget-conscious businesses.