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I'll try to keep it short - he is starting to expand his business and wanted to buy some equipment offered on 6 months interest free credit - total £6k. He has a never defaulted on any loans or been refused credit. I believe the seller were using Barclays to finance the loan. They refused. No reason forthcoming. I wondered whether it's the fact that they have only been in their new home for a week, and used their new address - could that be the reason? Either lack of time at the address or the 'address' has a bad credit rating? Or was it the amount of money? I know you can get a copy of your credit rating - and he may do that, but any further help appreciated. Thanks.
they have only been in their new home for a week, and used their new address - could that be the reason?
Presumably not on electoral roll yet at address? Other than any other factors like income etc. that would be the first thing that was checked.
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The Following User Says Thank You to gilligansyle For This Useful Post:Show me >>
Addresses can't have bad credit ratings only people can.
Though companies can refuse to deal with an address because either too many previous occupants or the particular postcode is associated with fraudulent activity credit ratings are based on people.
Quote:
Originally Posted by gilligansyle
Presumably not on electoral roll yet at address? .
That's not really an issue as they will ask for your previous address if you haven't lived in a property for over 3 years. And they don't expect you to be on the electoral roll after a week. I was told unofficially that you have a few months grace before you are expected to be on the electoral roll if you move houses.
The real issues would be things like how long the business has been running as when they credit check small businesses they credit check both the directors running the business and the business itself if it is a limited company. If the business is run by a sole trader then they are credit checked solely. In addition you need to add on the fact that banks don't want to lend to small businesses at the moment.
I'm not cynical I'm realistic
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The Following User Says Thank You to olly300 For This Useful Post:Show me >>
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps. Take care over copyright. Use excerpts and links rather than copying long text. This site asserts copyright on all comments posted on the board.
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.
Why was my friend refused a loan?
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