Cannot Obtain Loan No Credit History

[roker]

My son who is a sole trader is trying to obtain a loan for a new or 2nd hand van to replace his existing van.
He has been told that he has no credit history and therefore cannot obtain a loan. How crazy, everyone starts off this way.
I have told him that there are good deals going for new vans through the dealer and that they would hardly refuse him if it means a new sale for them. Has anyone please got any suggestions.

 

[demoivre]

I have told him that there are good deals going for new vans through the dealer and that they would hardly refuse him if it means a new sale for them. Has anyone please got any suggestions.

He might have a better chance of getting a lease agreement through the garage but ultimately the finance decision of the finance company that the dealer uses will be subject to the usual criteria ! Has he a credit union account that would allow him use that route to secure finance?

 

[Bronte]

This is where mum and dad come in, guarantor option, if he is doing well as a sole trader and you trust him then I don't see why not.

Meantime he needs to start building up a credit history.

 

[Brendan Burgess]

Hi Bronte

I am not sure that any of the lenders are doing parental guarantees any more since so many people challenged them.

roker

I imagine that it is a problem with the profitability of the business as shown by his accounts. His accounts probably do not show the means to repay the loan.

Can he not get an HP agreement? But he is probably trying to buy a cheap van.

Brendan

 

[Gerry Canning]

Hi Bronte

I am not sure that any of the lenders are doing parental guarantees any more since so many people challenged them.

roker

I imagine that it is a problem with the profitability of the business as shown by his accounts. His accounts probably do not show the means to repay the loan.

Can he not get an HP agreement? But he is probably trying to buy a cheap van.

Brendan

1. Apply through his own Banks HP section.
2. They can see how good his statements are.
3. Try to put in 25% of cost , by deposit/trade in.

Sounds like a poor finance salesman that said , no ICB = no loan!

If his own Banks HP section won,t do it , take statements to Garages finance section and see can they sort.

 

[Bronte]

If his own Banks HP section won,t do it , take statements to Garages finance section and see can they sort.

Exactly I would have thought one of the big garages would know all the tricks to getting finance. But people need to understand HP. (where I am KBC are offering car loans just under 2% and we got a car with zero % finance - just pointing out what is available on the continent)