Finance solutions are the business

Simon Gray, of Credo Asset Finance, says dealers often fall short on business-user finance.

Finance lenders generally fall into one of two distinct camps – retail finance providers and business user funders. Most car dealers have access to two or three retail providers – one is their manufacturer finance (for a new car franchise).

When it comes to quick turnaround finance for good credit cases, on straight HP or a lease purchase/PCP (private contract purchase) deal, they are geared up to provide this with quick decisions including auto underwrites, instant document printing etc. They do this through a credit score for the customer and credit reference agency scoring.

When it comes to credit approval for a business, a partnership, LLP or limited company, simple credit scores either don't work or tend not to agree automatically. Add a lack of business-orientated products and understanding of business finance in general and the stresses and strains of running a business and things can start to go wrong.

The company may have lost money one year, have a negative balance sheet, maybe a default or county court judgment has been picked up as a commercial dispute, or the accounts are late to be filed. Maybe it had a company which was liquidated. Perhaps it wants a no deposit deal, annual or quarterly payments or a variable rate deal. Maybe a contract hire is required or a contract purchase on a used car. The list goes on, and for 'retail finance providers' most of these scenarios would mean they are unable to help.

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Credo specialises in turning these nos into yesses. Deeper investigation, a manual approach to underwriting and sometimes extra information to back up a deal are needed. Scorecards are fine and have a place but for most business-user deals they really are not relevant and serve no purpose.

If you are a business-user who struggles to get the right deal for finance provided by a car or commercial vehicle dealer, I suggest you contact a trustworthy asset finance broker who will get the right decision more of the time for you and will understand all the implications and needs a business may have.

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Credo Asset Finance is at 85 Yarmouth Road, Norwich, NR7 0HF. Telephone 01603 703180, email or visit the website at

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