Having bad credit often decreases your chances of getting approved for a loan or any financing transactions. Most Australian financial services consider bad credit as a factor of getting declined. However, you are not entirely out of luck as there are many options to make yourself a better candidate for equipment financing even with bad credit.
Big downpayment. You can knock out a good portion of the total equipment cost if you have enough cash to pay the downpayment. Lowering the overall loan payment might change the lender’s perspective on your bad credit.
Reliable cosigner. If you know someone with better credit, make him agree to cosign on your loan application. Having a trusted cosigner might increase your chances of getting your equipment financed. Lenders might offer you equipment financing if you have a reliable co-signer.
Offer collateral. In most cases, the equipment you are planning to get for the loan serves as collateral in case of having a default. If you have any other equipment or real estate, offering it as collateral may be the boost you need to get the financing you want. In this way, you can have proof that you have the ability to pay for the loan.
Show other sources of income. If you have a business, it is important to offer and prove to the lender that it has been earning a stable income. You can show huge revenue from your business with several months of bank statements. Lenders may consider your bad credit if you show that your business is really growing.
Having bad credit doesn’t always mean you’re unable to get financing. Sometimes you’ll just need to try different effective options to boost your chances of getting it. Be sure to prepare all the requirements and consult with a reliable Australian financial services provider to help you deal with your efforts effectively.