Am I Eligible To Lease A Van?
Like all forms of credit, be it a loan or credit card for the business, you need to be able to demonstrate that your business has the means to repay the financed amount; this is done by credit, eligibility and affordability checks.
If you want to check if you are eligible for finance – check out our finance eligibility checker here.
What Is Required for An Eligibility Check
For the funders to determine if you are eligible for finance, they will want to review some of your documentation and confirm a few details.
Documentation required for a Van Leasing Eligibility Check
- How long your business has been trading
- We have options available for start-ups and recently established businesses, this may require a director's guarantee
- You will need to confirm how long the business/company you work for/own has been trading and registered with HMRC. This is to establish the strength of your application.
- Does your business have any recently declined finance applications?
- We will need to run a full credit check so if the business has been declined for other financial products you need to declare this. Again, this is to ensure that we do not run unnecessary credit searches with funders who would be unlikely to approve an application. Instead, we can try to fit a funder that will best suit your needs and circumstances.
- Can you, or are you willing to, provide a director’s guarantee?
- A director's guarantee strengthens your application, as it means that the director will be personally liable should the business no longer be able to make the payments. We may also require:
- Three months’ business bank statements
- To demonstrate cash flow and ability to manage finances and current financial position
We’ll also need to know
- Are you over 18?
- You need to be 18 or over to lease a vehicle
- Can you provide five years’ address history?
- This is required by our funders, to check your recent credit history
- Can you provide employment history for the past 5 years?
- To establish that you are in continuous employment, with a steady source of income
- Have you personally been declined for finance in the past?
- This helps us to avoid carrying out unnecessary credit searches, by finding the funder who is most likely to approve your application.
- Do you personally have any adverse credit history?
- The more we know about your credit history and personal circumstances, the greater the likelihood that we can find a solution that will meet your needs and circumstances.
- Proof of Address (Utility Bills etc.)
- This is to confirm that you live at the address stated and helps protect consumers from identity fraud.
Will Bad Credit Affect Van Leasing Eligibility?
The short answer is yes, but don’t be put off as we have a complete guide on leasing a van with a bad credit history here. Also, don’t be afraid to get in touch and have a chat with one of our account managers.
Is There Any Age Limits On Van Leasing?
You need to be 18 or over to lease a van from Leasing Options.
Benefits of Leasing a Van with Leasing Options
There are many advantages associated with leasing a van with Leasing Options. They include:
- Known fixed monthly costs
- Low deposit
- No -trade-in’ hassle at the end of the contract
- Wide selection of vans available to lease
- Tax deductible
What Credit Score Do I Need To Lease A Van?
Funders do not strictly rely on credit scores. Rather, they take a holistic view of your financial circumstances and make a decision based on their risk appetite at the time of your application. Some funders have a higher risk tolerance – this will be reflected by the monthly payments that they may offer to you.
Do You Have to Have Good Credit History to Lease a Van?
Your credit score may be considered, in the same way banks and other lenders would give credit to their customers. Our funding panel follows a similar process to assess the individual’s or company’s credit history. The credit score provided by the credit agency will look back across the past six years to review financial transactions related to any credit requests.
Although the parameters used by each finance company is different, in general terms they are looking for a high credit score. This helps to assure us that you are able to maintain other commitments without struggling to make the monthly lease payments.
One of the three main credit referencing agencies in the UK will likely be used to assess your credit file: Equifax, Experian or TransUnion.
It is important to note though – if you don’t have a good credit history, leasing with bad credit history is possible but this will need to be discussed further
Who Is Eligible For Van Leasing?
Most businesses can lease a van, but it’s especially popular with limited companies, sole traders and partnerships.
Which Businesses Are Eligible for Van Leasing?
Most businesses can lease a van and these include:
- Sole traders
- Limited Companies
- Local businesses
- Small partnerships
- Limited Liability Partnerships
New businesses can also be considered for leasing a van. Additional information will be needed as part of the application process but this can be discussed with your account manager.
Can A New Business Lease A Van?
Yes, the good news is that new businesses can apply for a van lease.
You may be required to supply additional information to support your application such as:
- Business bank statements for the past 3-6 months
- An opening balance sheet for the business