Adverse Credit

Adverse credit is a problem when applying for any loan mortgage or credit and that includes commercial finance. Adverse credit is due to a problem that has happened in the past. The company or financial institution(s) that you had the problem with will have registered an entry on your credit file. This entry will show each time another company carries out a credit search on an individual or company. This will alert the company doing the search that the applicant has had credit problems in the past and can in many cases mean that you will be turned down for the credit you are applying for. This could be a loan, mortgage, credit card, mobile phone, or commercial mortgage or finance. Once you have been turned down it is unlikely that you will be able to get the decision reversed unless you can prove it is a mistake.

Adverse credit can be due to loan or mortgage arrears, missed mortgage or loan payments, defaults, County Court Judgements (CCJ’s), Individual Voluntary Arrangements (IVA’s), missed credit card payments, bankruptcy and repossessions. The aforementioned examples will result in you being categorised as having adverse credit.

The Commercial Mortgage and finance market now caters for borrowers who have adverse credit. Adverse credit lenders have been active in the residential market for some time now with great success. The commercial market now has alternatives to Banks, which are still not willing to lend on a commercial basis to any one who has adverse credit. Alternative lenders are taking a more flexible approach and have schemes designed for people with varying degrees of adverse credit, from small CCJ’s to discharged bankrupts.

By approaching a Commercial Broker such as Think Commercial you will be advised on which schemes you are able to apply for depending on the level of adverse credit you have.