4 Ways to Expand Your Car Finance Options and Business
If you’re like many Australian small business owners you’ll know how difficult it can be to access the finance you need to grow your business and stay competitive. It’s a situation that Yes loans could help you overcome.
Let’s say you own and have been operating a boutique florist for a number of years and are doing well. However, you are starting to lose out to your competitors because their delivery radius of 10kms is much greater than that of yours.
Realising you’ve poured most if not all of your start-up cash into the business, you begin thinking about how your application might look to potential lenders — especially since you’ve run up a sizeable debt on your credit card paying bills in the meantime.
So what do you do?
You might consider a commercial hire purchase, chattel mortgage, ease, or choose from a wider range of car finance products for businesses. Either way, you’ll need to take the necessary steps towards improving your chances of getting a car loan, such as:
1. Paying a Deposit
While a deposit may not be necessary for your loan application to be approved, doing so will make it clear to the lender that you’re serious about obtaining finance. This helps improve your chances as the deposit amount will reduce the principle you need to borrow and the level of risk the lender would assume.
2. Showing Good Conduct
Paying any existing loans on time is a great way to improve your chances of an approval. With Yes Loans you can check your credit report (free of charge) before applying for a loan. Being able to show 12 months of good conduct is a sure way to improve the odds of your application being approved.
3. Avoiding Further Debt
You’ll want to refrain from taking out small unsecured loans — like those from payday lenders, as they are not considered ‘referable credit.’ This means that even if you meet all of your obligations and make your repayments it will not help your credit score or application.
In fact the use of short term, high interest rate lenders indicate to main stream lenders that you are maybe having problems managing your cash flow.
4. Going Through a Finance Broker
Approaching several car finance lenders at once may sound like a good idea initially but it isn’t; the reason being that your credit file gets updated with every application you submit and too many in too short a timeframe may affect your credit score.
So whilst it may seem like a good idea to submit online applications to many lenders, hoping one says yes, this will work against you and may be grounds for a declinal.
A broker who specialises in commercial car loans can perform a single credit check so only one application will go on your credit file. Your broker will then supply that information to their panel of lenders, to help find you the best deal with reference to your needs and financial circumstances. The ultimate finance lender will record the loan on your credit file.
For More Information
While you may not need to follow all of the points listed in this article, you can improve your chances of getting the car loan you need to help you grow your business with a few simple tweaks to your financial conduct.
Contact a Yes Loans finance broker today or get started by filling out our secure application form and applying online. The short form should only take a few minutes to complete and the information you provide will not affect your credit score or credit rating.
Until Next Month...
Wendy Mann, Yes Loans
Your Women Friendly Services Finance Consultant
Yes Loans is a trading name of Rohanna Pty Ltd ACN: 008 905 477, Australian Credit Licence Number 392426. Fees, charges, Terms and Conditions apply. Credit approval criteria applies.