Contract Hire and leasing agreements are underwritten by the financer (Contract Hire-Finance Company) as a credit facility for businesses (Ltd companies, sole traders, LLPs and PLCs).
Account approval takes in to account the customer’s credit status and vehicle cost similar to that of normal vehicle finance, even though the vehicles is the property of the financer from the outset.
Account approval can be applied for singular vehicle transactions, or for a credit facility to cover a multiple vehicle fleet.
Account credit approval must be first agreed by the financer prior to vehicle order.
All Vehicle Contracts Limited will always seek your written permission prior to forwarding your details to any of our approved vehicle funders. Our practise is to also only forward your details when a specific vehicle has been agreed, by way of our pre-contract order that clarifies yours or your company’s specific requirements.
So let’s take a closer look what the criteria is and what is needed to be to be eligible to obtain credit acceptance for contract hire and leasing.
Contract hire and leasing agreements are available to businesses (Ltd companies, sole traders, LLPs and PLCs).
Financers are responsible lenders that require financial information that demonstrates the customers affordability and ability to pay. To demonstrate this, the standard information required usually is: Business user or company details, with trading history of at least three years with update accounting information available or registered at Companies House.
Management accounts and financial information such as business bank statements can be requested to display affordability in lieu of certified accounts. Director’s guarantors or higher initial payment may also be required, in certain circumstances.
A standard credit check is carried out, usually through Experian or Equifax. County court or defaults usually mean automatic account rejection, but may be considered by non-status contract hire funders.
All Vehicle Contracts like to help new business ventures be considered, with business plan and financial information such as business bank statements to display affordability in lieu of certified accounts. Higher initial payment may also be required.
To avoid identity fraud, document signatories must provide proof with photo identity; this is a full UK driving licence with photo ID (an old style licence must be accompanied with your passport).