Can you arrange leasing to companies in a CVA
Our expert Gary answered...
When you enter into a CVA you must surrender all your forms of credit (i.e. credit cards etc.) and you will not be allowed to obtain any further unsecured credit until you have finished your CVA. You are however, entitled to use pre-paid cards. The bottom line is, if you are in a CVA, it is highly likely your credit rating is not in good shape. By entering into an CVA, your company will not have a bad credit rating forever and when you have completed your IVA, your credit rating will begin to repair itself if you keep up your repayments. However, to do this you will need to approach what's known as sub-prime finance lenders, some of them do van leasing, they charge a higher interest rate to reflect the higher risk. It is then by using these lenders and paying all your repayments on time that you can rebuild your company's credit history and eventually build your history back up to a point that you will again be accepted by prime lenders (the ones that charge you the lowest, or a 'normal' rate of interest). Hope that helps Richard.