Buying a van from own pocket is not easy for everyone, as there is very high amount involved. Hence, there is little option than to apply for commercial van finance. However, ensure that the loan comes at low cost, so that you can repay it without putting your earnings under stress.
To ensure, low interest rate on the finance, you should apply for it with an excellent or good credit rating. This means that your rating on FICO scale should be above 600. If it is lower, then make timely payments towards some debts for few months to improve the score. Your credit report matters much in determining the rate and terms-conditions of the loan. So, get copies of the report and ensure that it is without any inaccuracies.
Usually, Commercial Van Finance is provided against your residential or commercial property. This is because such a loan will give greater amount that is required for purchasing the vehicle. The loan amount will depend on the value of the vehicle and value of the property, pledged as collateral. The interest rate is kept lower. The loan can be returned in 5 to 30 years. If you need only smaller amount, then it can be obtained without collateral, under the unsecured loan. However, interest rate will go higher. The loan repayment will be done in few years.
You should also be ready to make down payment to the lender. The down payment can be used as a tool of acquiring the loan with ease, despite the borrower having a history of late payments, defaults, arrears and CCJs. usually, if you make more than twenty percent of the loan as down payment, the lender feels safer and gives the approval.
Make an extensive search for commercial van finance on internet. Apply for the rate quotes and compare them. You should also see the additional charges on these loans. This way, you can locate a suitable deal.
