At Lease Me Cars, we help small businesses, sole traders, limited companies and growing SMEs explore Business Contract Hire options, even if they have struggled to get accepted elsewhere.
Whether you have recently started trading, set up a new limited company, work for yourself, or have previously been declined, we can help you explore which business lease options may be available.
All applications are subject to status, affordability, finance provider criteria and vehicle availability.
Business Contract Hire (BCH) is a long-term vehicle lease agreement for businesses. Instead of buying the vehicle, your business pays fixed monthly rentals over an agreed term.
The cost is usually based on the vehicle you choose, the length of the agreement, your annual mileage, the initial rental and whether maintenance is included.
At the end of the agreement, the vehicle is returned to the finance provider. With standard Business Contract Hire, your business does not own the vehicle at the end of the contract.
Business Contract Hire can be suitable for:
For many businesses, BCH can be a useful way to access a reliable vehicle without needing to buy it outright.
Yes, it may be possible to get Business Contract Hire with bad credit, but acceptance is not guaranteed.
Bad credit can include missed payments, defaults, CCJs, previous finance declines, poor business credit history or high existing credit commitments.
Finance providers will usually look at the full picture, including how recent the issue was, whether it has been resolved, how your business is performing now, and whether the monthly rental is affordable.
In some cases, Business Contract Hire for applicants with bad credit or limited credit history may not be as competitive as a mainstream lease option for a business with a stronger credit profile. This is because the agreement may be considered higher risk by the finance provider, which can affect the available vehicles, initial rental, monthly payments or terms offered.
For example, an older satisfied CCJ may be viewed differently from a recent unpaid CCJ. A business with prior credit issues but stronger recent trading may also be assessed differently from one with ongoing affordability concerns.
Every application is different, which is why it is worth giving Lease Me Cars the opportunity to check what options may be available.
Yes, a new business may be able to get Business Contract Hire, but approval can be more challenging if there is little or no trading history.
This is common for newly formed limited companies, recently self-employed sole traders, start-ups and businesses that have not yet filed accounts or built up a business credit profile.
That does not automatically mean a decline. Depending on the finance provider, you may still be considered if you can provide supporting information such as business bank statements, proof of trading, director or owner details, or evidence that the lease is affordable.
In some cases, the finance provider may request a higher initial rental or a Director’s Indemnity. A Director’s Indemnity is similar to a personal guarantee and means the director agrees to support the agreement if the business is unable to continue making the payments. This is a common request for newer businesses, limited companies with little trading history, or applications considered higher risk.
Yes, sole traders can apply for Business Contract Hire.
Because a sole trader and the business are closely linked, the finance provider may place more emphasis on the individual’s personal credit profile, income, address history and affordability.
If you are a sole trader with bad credit, missed payments, defaults or limited credit history, getting accepted may be more difficult, but it may still be possible depending on your circumstances.
Yes, it may be possible to get Business Contract Hire with no credit history, but the finance provider may need more information before making a decision.
No credit history does not mean bad credit. It simply means there may not be enough information to assess how reliably the business manages its financial commitments.
This can apply to:
In these cases, finance providers may look at bank statements, trading activity, affordability and the personal credit profile of the business owner or director.
When you apply for Business Contract Hire, the finance provider will usually carry out checks to understand risk and affordability.
They may consider:
A credit score is only one part of the assessment. Finance providers may also consider your business’s current performance and whether the proposed lease is suitable and affordable.
Every finance provider has its own criteria, but the following may help support your application:
Choosing a vehicle that fits your budget is important. Applying for a high-value vehicle with a large monthly rental payment may make approval harder if the business is new, has a limited history, or has prior credit issues.
If your business has bad credit, no credit history or limited trading history, you may be asked for extra information.
This could include:
This helps the finance provider build a clearer picture of your business and assess whether the agreement is affordable.
Being declined by one leasing company does not necessarily mean all options are closed.
Different finance providers use different criteria. Some may prefer established businesses with several years of trading history, while others may consider newer businesses, sole traders, or applicants with adverse credit.
At Lease Me Cars, we consider your circumstances and aim to match your application with a suitable Business Contract Hire option.
We cannot guarantee acceptance, but we may be able to help where a standard leasing route has not worked.
A finance provider may conduct a credit search as part of the application process. The type of search can vary depending on the finance provider and stage of the process.
A hard credit search may leave a visible footprint on your credit file. Missed payments on a lease agreement can also negatively affect your credit profile.
Keeping up with your monthly rentals is important for protecting both personal and business credit standing.
If you are a small business owner, sole trader, limited company or SME with bad credit, no credit history or limited trading history, Lease Me Cars may be able to help.
We work with businesses that may struggle to get accepted through standard leasing routes and help them explore suitable Business Contract Hire options.
Bad credit does not always mean no options. No credit history does not always mean no chance. A new business does not always mean you cannot lease a vehicle.
Start your Business Contract Hire application with Lease Me Cars today and give us the opportunity to explore what options may be available for your business.
This article was written and published by Christopher Shenton.