The start of 2009 has been filled with the doom and gloom of the UKs economic market, causing a downturn for many reputable businesses. Others have faced problems of leasing vehicles for their company due to their bad credit status. What could be worse than needing a vehicle at short notice but then finding that you are being rejected by main stream funders due to your credit status?
When one suffers a setback such as this, it can leave them feeling hopeless and at a loss of what to do next. What people must remember is that although they feel like the only ones going through a bad credit status, there are in fact millions of people experiencing the same or a similar situation, but are still able to lease new vehicles. How are they able to do this? Fortunately there are leasing companies that are tailored to companies or individuals with a bad credit history. These are known as non status leasing and are offered to 99% of the clients who have suffered a bad credit status.
Non status leasing is the leasing of vehicles to businesses or private individuals with a poor credit status. Prospective clients may have faced numerous rejections due to their credit file and are left struggling to find a suitable leasing agent to accept their application. Many will also dread the prospect of filling in a credit history form when shopping for a new vehicle that promises to help them find an affordable deal, because they do not want to face the rejection that is likely to come after the application process. There is nothing more humiliating than taking the time to shop, only to find that you do not qualify.
Remember that being rejected is just part of the process that many underwriters must follow and it does not boil down to discretion. In simpler terms, imagine being amongst ten of your friends, when suddenly another person walks in and asks to borrow 10 pounds promising to pay you back next week. But then your other friends tell you not to lend him the money because they have said no to him in the past. Their insistence will influence your own decision to lend him money and ultimately you will decide against lending him money. This is essentially how underwriters work, when they see an application with 10 or 12 declines from other underwriters they will naturally reject that application request, all reputable leasing brokers will make no more than two applications for prime finance on your behalf.
Continuing to apply can often be more damaging to your credit file, which is why it is best to approach organisations that offer services to people with a poor credit history.
For all non status leasing there are some ground rules that you would need to follow and be aware of prior to making an application. To be considered for a non status leasing for your business, you will normally need to provide 3 months worth of bank statements, two copies of your latest utility bills (up to three months old), proof of current address, driving license, any contracts you have been awarded and a business plan if you are a new start up business. It is better to be over-prepared with paperwork; therefore you should make sure you have contacted your vehicle leasing specialist for more information.
The specialist is at hand to draw up the correct finance agreement for you and help you lease the most affordable vehicle. Therefore, it is their job to do the research for you and advise you accordingly. You will find that the price you have to pay will be more than the normal leasing price offered to people with a strong credit status, as the risk greater for the finance company with the former rather than the latter. With this in mind you should always approach a leasing agent with realistic expectations.
Author Resource:-
Anna Stenning is an expert on non status leasing, having dealt with previous clients with poor or no credit files.
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