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Contract-Hire-Business-Approval

25/11/2014

How easy is it to get company finance, car leasing and contract hire approval?
Last week, we wrote a blog about how easy (or not in some cases) it is to get approval for personal car leasing and finance. Some of the issues we covered were traceability, employment status and history, affordability and the all-important “credit issues”.
Business Car Leasing Approval
In many ways, getting approval for “prime” business contract hire, finance lease or other forms of company vehicle funding work on the same principle, but they obviously differ.

In an effort to shed some light on the issue, we have put together some pointers on how to get car leasing or finance if you are in the market for a new company car.

Company car and van leasing credit approval criteria 2014

1. Trading historyThere are some finance companies that will look at businesses that have been trading for just over one year – provided that they have the first year accounts and usually bank statements as support – but most do like to see three years’ trading history.
2. Profitability
OK, finance companies want to know that your business is supporting itself. But don’t be too scared if you’re not declaring millions of £££s in profits each year; the underwriters will make a sensible decision based on your accounts as a whole. Usually, however, it is expected that a company should be profitable.
3. Affordability
Here is where business leasing approval is very similar to personal car or van funding – funders want to know that you can afford the payments and that they will not be over-stretching your business. It is quite usual to be asked for bank statements so don’t be worried about this if you are asked to provide them during the underwriting process.
4. Credit issues
Again, this is the same as personal car leasing – CCJs and payment arrears are a no-no. If you have defaults or they can see returned (or bounced) cheques on your bank statements then don’t prepare yourself for a happy underwrite ending. After all, if you have a history of not paying other businesses or individuals, then they are understandably going to be concerned.

Company leasing credit approval criteria 2014


Not all car leasing and contract hire applications are the same, and it is very difficult to write a “definitive” blog on this matter – we have a wide portfolio of funders who all look at approval in different ways. Please tweet Barry @Car4Leasing for any advice that you may need or call 0844 414 8144; we treat all clients individually and will always do our best to “get you in wheels”!

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