Bad Credit Business Car Loans in the UK

Many people think that finding bad credit business car loans in the UK is challenging, but it is easier than you think. There are companies that specialize in offering bad credit business car loans. And since there are many businesses offering bad credit business car loans, you can leverage the competition to get cheaper rates with lower monthly payments. In this article, we will show you how and where you can get a car for your business even if you have bad credit.

Requirements to Get Business Car Loans

The requirements for getting business car loans vary from one lender to the other. The following are the common requirements for a business car loan:

  • 3-6 months’ business bank statements
  • Name and address of the sole trader
  • Opening balance sheet if there is any

Can I Get a Bad Credit Business Car Loan?

If you are self-employed or you have a sole proprietorship, you can easily get bad credit business car loans. Since you are a sole trader, your credit score can affect your business’s eligibility for a business car loan.

How to Get Approved for a Business Car Loan with Bad Credit

If you are self-employed or are a sole trader, you can easily get a car loan because it is a form of a secured car loan. A secured loan has an item of value to back the debt. And in this case, the car becomes the collateral. If you stop making your monthly payments, the lender can repossess your car and sell it to recover the remaining amount of the unpaid loan. Therefore, it is easy to get approved for a business car loan even with bad credit since the car becomes the collateral. Most of the lenders offer online applications.

Best Bad Credit Business Loans

If you are thinking of acquiring a car for your business, the following lenders can help you get a bad credit business car loan.

Go Car Credit

Go Car Credit help people with bad credit and cannot access car loans from other borrowers. The process of applying for a car loan with Go Car Credit is very easy. You just need to apply for a car loan via their website. The process takes 2 minutes. They review your application and get back to you in 30 minutes. You can choose a car from one of the approved dealers. Then sign the paperwork and you get your car.

Requirements

  • Proof of a source of income for the sole trader
  • 3 months’ bank statements of the sole trader
  • All the income of the business car loan applicant must go into a bank account in their own name
     

Moneybarn

If you have been rejected by other lenders, Moneybarn can help you get a business car loan even with bad credit. You can get a car quote from one of their online application. They will then run a soft credit check to see if they can offer you a car loan. If you are accepted, they will discuss with you the monthly budget. You will need to do the paper and then they will pay the dealer. You can then collect your car from the dealer.

Requirements

  • Minimum gross salary of 1,000 after tax
  • Be aged between 21 and 70 years
  • Have a UK driving license
  • Consecutive payslips for the past 2 months
     

Stoneacre

Stoneacre is a bad credit business car finance lender and broker in the UK. Therefore, if you don’t get a business car loan from them, they can help you get one from their panel lenders. They don’t consider your credit rating, instead, they look at if you can afford to repay the loan. You can fill in their online to see if you are eligible, and it won’t affect your credit score.

Requirements

  • You need to provide proof of address
  • Provide identity documents like a passport and a copy of your ID
     

CarVine

CarVine is also a bad credit business car loan broker in the UK. They are brokers and not lenders and can help you get a business car loan even if you have bad credit. They do some soft credit checks while they also accept bad credit applicants. Rates differ based on individual circumstances.

Requirements

  • A copy of your photocard driving license
  • Identity documents like passport
     

Pegasus

Pegasus is a bad credit business car lender in the UK. If you are self-employed and have bad credit, you can still get a car loan. To get started, you need to fill in an online application form. The team will get back to you to advise you on the car loan and monthly payments. Pegasus will arrange the paperwork and speak to the car dealer

Requirements

  • You need to provide proof of address
  • Provide identity documents like a passport and a copy of your ID
     

Summary of Bad Credit Car Loans

If you are looking for a bad credit business car loan in the United Kingdom, consider lenders in the list above. You can apply for auto car loans online even if you have bad credit. It doesn’t matter whether you are self-employed or a sole trader. You can still get the loan. A bad credit business car loan is a secured loan since the car you buy becomes the collateral for your loan. Therefore, it is easy to qualify for one.

Vincent is a writer with an interest in finance, business, technology and health niche. He holds a Bachelors degree in Applied Statistics with computing. Read more about Vincent and see our complete editorial team at FiFi.