Operators with their truck loan application rejected can address the reasons behind the rejection, find another lender, or request options from a finance broker. There can be several reasons why lenders do not approve finance applications. Some of these reasons may be overcome with the right lender and/or the right credit facility. As specialists in heavy vehicle financing, we work with business owners to match them with their most suitable lender from our vast lender base.
Utilising our expert services with access to specialist lenders assists businesses to secure financing on machinery and equipment that is tailored to their requirements. For operators that have had their finance application made direct to a lender rejected, we may have solutions.
Why are truck loan applications rejected?
Commercial credit lenders have their own criteria for approving finance applications. The criteria vary with different lenders. The reasons can include:- the operator having a turnover below their minimum threshold for loans; the operator not providing the required 12-24 months of financials; incomplete financials being presented; credit score not acceptable; financials not meeting the criteria for that lender; the loan amount not acceptable to the lender; asset holdings below the lender’s threshold for the size of the loan; and the vehicle is not acceptable collateral for a secured loan.
Solutions When Truck Loan Application Rejected
We offer advice, specialist lenders and loan options to address many of the reasons an application is not approved. Some rejections may be addressed by finding a lender better suited to the profile of the business. The heavy vehicle lending market includes banks and non-bank lenders. Many non-bank lenders can be more flexible with their approval guidelines than banks that have stricter requirements due to their banking status.
Where the application was for 100% of the purchase price and that loan amount was not acceptable to the lender, operators may consider making a downpayment to reduce the loan required. Where a loan to purchase a new vehicle is not accepted, operators may consider an Unsecured Business Loan to affect repairs and upgrades to existing vehicles. This may offer a stop-gap measure for the business until their financial position improves and a loan for a new truck is achievable.
Where the vehicle is not acceptable collateral, we offer Unsecured Business Loans. This type of credit does not require the purpose of the finance to be used as collateral. Providing operators with a flexible and versatile credit facility.
Where the financials or credit rating are the issue, operators may review their position and work to reduce debt levels to improve their position. We may be able to source a workable Bad Credit Loan through our specialist lenders.
Not meeting criteria with financial documents, minimum thresholds and minimum trading times may be addressed with a No Doc or Low Doc Truck Loan.
Your Jade broker will discuss your individual requirements and present possible solutions to secure you workable finance for a new vehicle or other options.
Low Doc Truck Finance Solution
A Low Doc Truck Loan can be a workable solution for operators that do not meet many of the finance approval requirements of banks and other lenders. These are loans that are approved by specialist non-bank lenders based on minimal financials, lower turnover and asset holdings and for businesses that have traded for less than 12 months. These may be used by new and start-up operators and smaller owner-drivers.
The Low Doc approval may be used with Lease, Chattel Mortgage, Commercial Hire Purchase or Rent-to-Own. Enabling businesses to secure the credit facility that suits their balance sheet and tax strategy and accounting method.
To discuss if this is a suitable finance solution for your business, speak with a Jade broker.
Preventative Measures
As the saying goes, prevention can be better than cure. With finance, taking preventative measures to avoid having a loan application rejected, can be better than having to scramble for alternatives after being rejected.
To avoid applying for a loan amount that your business is unable to service, work out your finance commitments before buying and applying. Use our Finance Calculator to work up estimates based on the price of vehicles to determine which make, model, new or used, you can realistically afford to buy.
Credit rating and payment history is critical to getting approved and being offered the best interest rates. Ensure you maintain a good credit rating by paying bills and suppliers on time and staying up to date with loan repayments. If cash flow pressure is preventing you from staying across these commitments, speak with us about an Overdraft. A short-term or ongoing line of credit may ease the pressure and prevent late payments and your credit rating slipping.
Getting pre-approved finance before committing to a vehicle purchase can be an ideal way to approach sourcing finance for all operators. The application is processed ahead of the vehicle purchase, so operators know they are approved and for how much. Providing confidence and assurance and simplifying the process of acquiring new vehicles with finance.
Finally, our best preventative measure, always use a broker for business finance requirements. Ensure you have experts to focus on your best interests, to match you with the right lender and secure you the most suitable credit facility.
To address issues with a truck loan application is rejected, contact Jade Truck Loans on 1300 000 003
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.
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