Overcoming Financial Hurdles: How Vendor Finance Helps Businesses with Poor Credit History Secure Loans

In the world of business, having a strong credit history can be the key to unlock doors to financing opportunities. But what happens when an unexpected circumstance you end up having poor credit history, making it difficult to secure funds for your enterprise? Here at Vendor Finance, we understand that life can throw curveballs, and sometimes your credit history can take a hit as a result. Let’s take a recent case of a long-standing business customer as an example.

This individual had been in the haulage business for over two decades, owning a large fleet of trucks and trailers. His credit application for purchasing a used truck from a similar private operator seemed rock solid on paper. Despite his rich business history, he found his application automatically declined by several lenders. The reason? A series of missed payments from a joint property finance agreement with his ex-partner from two years prior, which happened during a judicial separation process.

In scenarios like these, we take a step back and look beyond the surface. When we reviewed his Central Credit Register (CCR) report, we were able to gain a clearer understanding of his situation and present it to the funders in a more comprehensive manner.

With the non-bank funders who we deal with, we follow a three-step process to evaluate such applications:

1. Identify the issue and its cause
2. Determine if the problem was addressed
3. Confirm if the issue has been resolved

By following this approach, we’re able to provide a full picture of the applicant’s circumstances and show funders that a past financial stumble doesn’t necessarily represent a future risk. As a result, we were able to secure funding for this customer, turning a hard “no” into a promising “yes.”

At Vendor Finance, we believe in looking at the full story, not just the credit score. If your business has experienced a similar situation, we’re here to help. Don’t hesitate to contact our commercial department at 0719310137 or via email at commercial@vendorfinance.ie. Remember, a past financial issue does not need to be a roadblock to future success.