What Counts as Bad Credit for Commercial Vehicle Finance?
Lenders assess credit through a combination of business credit bureau data (Experian, Equifax, Creditsafe) and personal credit checks on directors. Adverse markers include: County Court Judgements (CCJs) on the business or director; defaults on credit agreements; late payment history; individual voluntary arrangements (IVAs); and prior bankruptcies (discharged or undischarged). Each lender weights these differently.
Lenders Who Consider Adverse Credit
Close Brothers Asset Finance is consistently the most flexible mainstream lender for adverse credit commercial vehicle applications. They assess each case on its merits rather than applying automated scoring. United Trust Bank and a number of smaller specialist funders also actively write adverse credit CV business. Rates are higher - typically 12%–20% APR - and deposits of 20%–35% are common.
CCJs - How Much Do They Matter?
A single satisfied CCJ (paid) from more than 12 months ago is much less damaging than a recent unsatisfied one. Lenders distinguish between CCJs that indicate a one-off cash flow problem (often acceptable) and patterns of non-payment suggesting systemic financial difficulty (more problematic). Providing a brief explanation of the circumstances behind any adverse marks can significantly help your application.
What You Can Do to Improve Your Application
Offer a larger deposit (25%+ removes a lot of lender risk); apply through a specialist broker who knows which lenders are actively writing adverse credit CV business; provide management accounts showing current profitable trading; and if the adverse marks are old, demonstrate a clear period of clean payment history since then.
| Adverse Credit Profile | Likely Deposit | Rate Range | Lender Options |
|---|---|---|---|
| Minor late payments only | 10–15% | 8%–12% APR | Most lenders |
| Satisfied CCJ (12+ months ago) | 15–20% | 10%–15% APR | Close Brothers, Aldermore, specialists |
| Unsatisfied CCJ or default | 20–30% | 14%–20% APR | Specialists only |
| IVA (active or discharged) | 25–35% | 16%–22% APR | Niche specialists |