Why sole traders get declined
A direct lender runs one credit policy. Fall outside it and the application stops, with no explanation of whether a different lender would have said yes. Common reasons a perfectly fundable self-employed application is turned down:
- Less than two or three years of filed accounts
- Income that varies month to month, even where the annual figure is strong
- Recently moved from employment to self-employment
- Drawing a low salary from the business for tax efficiency
- A thin credit file rather than a bad one
None of those mean the van cannot be funded. They mean that lender’s policy did not fit.
What we do differently
We are a broker, not a lender, so we are not defending a single credit policy. Several lenders on our panel specialise in self-employed applicants, newer businesses and people whose accounts do not tell the whole story. Going to them first avoids the credit footprints that come from applying everywhere.
What you will usually need
Proof of identity and address, three to six months of bank statements, and details of the van. Accounts or SA302s help but are not always essential. If something on that list is missing, say so — the gap is usually workable.
Hire purchase or finance lease?
Most self-employed customers take hire purchase: a deposit, fixed monthly payments, and the van is yours at the end. A finance lease keeps monthly costs lower if you are not set on owning it. Worth a short conversation with us and your accountant.
See also: van finance generally, or van finance with bad credit if you have been declined before.