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Guaranteed van finance

You may have seen lenders claiming to offer guaranteed van finance. There is no such thing as guaranteed van finance in the UK, and you should be cautious of this claim.

Guaranteed van finance

You may have seen lenders claiming to offer guaranteed van finance. There is no such thing as guaranteed van finance in the UK, and you should be cautious of this claim.

In this guide:

In this guide:

What is guaranteed van finance?

Guaranteed van finance is the idea that you can get approved for a van finance agreement regardless of your credit history, income, and affordability.

In reality, guaranteeing approval for any type of regulated finance is not possible within responsible lending regulations.

If a lender were to offer you van finance without considering your financial situation, they would be breaking Financial Conduct Authority (FCA) regulations. This is because, as the FCA explains, lenders ‘must undertake a reasonable assessment of the creditworthiness of a customer’ before offering van finance.

Claiming to offer guaranteed van finance may also be considered misleading under the Consumer Credit (Advertisements) Regulations.

If you see companies promoting guaranteed van finance online, you should be wary of their offer, as it doesn’t align with UK advertising and lending regulations.

Why can’t you get guaranteed van finance without a credit check?

Offering guaranteed finance without understanding your creditworthiness and affordability could lead to you ending up in a negative debt spiral.

Under FCA regulations, lenders must carry out thorough credit checks and affordability assessments before approving finance applications. They are not allowed to offer any form of guarantee before doing these. This keeps customers safe and promotes responsible lending practices.

No responsible finance company will offer guaranteed van finance.

When you get a quote, we use a soft credit check to understand if finance is affordable for you. This does not impact your credit score. We only use a hard credit check when you’ve found the right van and contracts are drawn up.

Learn more about the differences between hard and soft credit checks.

Why do finance providers advertise guaranteed van finance?

Even though offering ’guaranteed van finance’ or ‘no credit check van finance’ doesn’t seem to be within the FCA’s rules or the Consumer Credit (Advertisements) Regulations, some companies still offer them.

They may be doing this to appeal to people looking for easy-access finance options or to entice those seeking van finance with bad credit.

However convincing their claims, no lender can truly guarantee approval for van finance until they have done credit and affordability checks.

What do so-called guaranteed van finance deals actually offer?

It’s important to remember that lenders aren’t allowed to provide guaranteed finance, so any adverts claiming to offer guaranteed van finance deals may actually be something else.

In some cases, lenders may package different types of finance, rental, or lease agreements as ‘guaranteed van finance’. It’s important to review the terms and conditions of these offers carefully.

If you see adverts for guaranteed van finance, these may be one of the following options.

What is guaranteed van finance?

Guaranteed van finance is the idea that you can get approved for a van finance agreement regardless of your credit history, income, and affordability.

In reality, guaranteeing approval for any type of regulated finance is not possible within responsible lending regulations.

If a lender were to offer you van finance without considering your financial situation, they would be breaking Financial Conduct Authority (FCA) regulations. This is because, as the FCA explains, lenders ‘must undertake a reasonable assessment of the creditworthiness of a customer’ before offering van finance.

Claiming to offer guaranteed van finance may also be considered misleading under the Consumer Credit (Advertisements) Regulations.

If you see companies promoting guaranteed van finance online, you should be wary of their offer, as it doesn’t align with UK advertising and lending regulations.

Why can’t you get guaranteed van finance without a credit check?

Offering guaranteed finance without understanding your creditworthiness and affordability could lead to you ending up in a negative debt spiral.

Under FCA regulations, lenders must carry out thorough credit checks and affordability assessments before approving finance applications. They are not allowed to offer any form of guarantee before doing these. This keeps customers safe and promotes responsible lending practices.

No responsible finance company will offer guaranteed van finance.

When you get a quote, we use a soft credit check to understand if finance is affordable for you. This does not impact your credit score. We only use a hard credit check when you’ve found the right van and contracts are drawn up.

Learn more about the differences between hard and soft credit checks.

Why do finance providers advertise guaranteed van finance?

Even though offering ’guaranteed van finance’ or ‘no credit check van finance’ doesn’t seem to be within the FCA’s rules or the Consumer Credit (Advertisements) Regulations, some companies still offer them.

They may be doing this to appeal to people looking for easy-access finance options or to entice those seeking van finance with bad credit.

However convincing their claims, no lender can truly guarantee approval for van finance until they have done credit and affordability checks.

What do so-called guaranteed van finance deals actually offer?

It’s important to remember that lenders aren’t allowed to provide guaranteed finance, so any adverts claiming to offer guaranteed van finance deals may actually be something else.

In some cases, lenders may package different types of finance, rental, or lease agreements as ‘guaranteed van finance’. It’s important to review the terms and conditions of these offers carefully.

If you see adverts for guaranteed van finance, these may be one of the following options.

One

Rent-to-buy schemes

Rent-to-buy schemes are lease-purchase agreements, not finance deals.

Under a rent-to-buy or rent-to-own scheme, you rent the van for a set period (usually 3-4 years) and then pay a final administration fee to become its legal owner. However, they do still look at your income and affordability, so the ‘guaranteed’ nature of these agreements is subject to you meeting their eligibility criteria.

Two

Bad credit van finance

Sometimes, adverts for bad credit van finance might target people who are worried about getting accepted for finance by claiming to offer guaranteed approval.

Bad credit van finance can help you if you have a low credit score or limited credit history, but these deals aren’t guaranteed. All van finance applications must pass credit and affordability checks before they’re approved, and you’ll still need to meet the lender’s eligibility criteria.

One

Rent-to-buy schemes

Rent-to-buy schemes are lease-purchase agreements, not finance deals.

Under a rent-to-buy or rent-to-own scheme, you rent the van for a set period (usually 3-4 years) and then pay a final administration fee to become its legal owner. However, they do still look at your income and affordability, so the ‘guaranteed’ nature of these agreements is subject to you meeting their eligibility criteria.

Two

Bad credit van finance

Sometimes, adverts for bad credit van finance might target people who are worried about getting accepted for finance by claiming to offer guaranteed approval.

Bad credit van finance can help you if you have a low credit score or limited credit history, but these deals aren’t guaranteed. All van finance applications must pass credit and affordability checks before they’re approved, and you’ll still need to meet the lender’s eligibility criteria.

Who are guaranteed van finance offers aimed at?

People who are concerned about their credit history or financial situation might find the idea of guaranteed finance appealing, as it claims to offer an easier way to borrow money.

Because of this, false advertising usually targets people with bad credit ratings or unstable incomes. This includes people:

Having a bad credit history doesn’t automatically mean you won’t be able to get van finance. Specialist lenders like Moneybarn have experience providing bad credit van finance and have helped thousands of people across the UK finance the vans they need.

Use our online van finance calculator to find out what your monthly repayments might look like.

Guaranteed van finance vs guarantor van finance: what’s the difference?

Guaranteed van finance and guarantor van finance are two totally different things, but it’s easy to confuse them if you haven’t come across them before.

Who are guaranteed van finance offers aimed at?

People who are concerned about their credit history or financial situation might find the idea of guaranteed finance appealing, as it claims to offer an easier way to borrow money.

Because of this, false advertising usually targets people with bad credit ratings or unstable incomes. This includes people:

Having a bad credit history doesn’t automatically mean you won’t be able to get van finance. Specialist lenders like Moneybarn have experience providing bad credit van finance and have helped thousands of people across the UK finance the vans they need.

Use our online van finance calculator to find out what your monthly repayments might look like.

Guaranteed van finance vs guarantor van finance: what’s the difference?

Guaranteed van finance and guarantor van finance are two totally different things, but it’s easy to confuse them if you haven’t come across them before.

Guaranteed van finance

  • Often aimed at people with bad credit ratings or unstable incomes
  • Claims to provide loans regardless of your credit history or financial situation
  • Is a marketing tactic that doesn’t align with advertising and FCA regulation

Guarantor van finance

  • Often aimed at people with bad credit ratings or unstable incomes
  • Involves another person (the guarantor) agreeing to repay if the borrower defaults
  • Is a legitimate form of van finance that could help those with poor credit scores

Guaranteed van finance

  • Often aimed at people with bad credit ratings or unstable incomes
  • Claims to provide loans regardless of your credit history or financial situation
  • Is a marketing tactic that doesn’t align with advertising and FCA regulation

    • Guarantor van finance

    • Often aimed at people with bad credit ratings or unstable incomes
    • Involves another person (the guarantor) agreeing to repay if the borrower defaults
    • Is a legitimate form of van finance that could help those with poor credit scores

    With both of these types of agreements, approval is not guaranteed. Lenders must do credit and affordability checks on all applicants before providing loans.

    Guarantor finance is less common now because bad credit finance options have become more readily available. Now, it’s easier for you to access van finance with a poor credit rating without the need for guarantors.

    Understanding your options if you’re struggling to get van finance

    If your credit history is making it difficult to get approved for van finance, there are a few things to keep in mind that could potentially help.

    With both of these types of agreements, approval is not guaranteed. Lenders must do credit and affordability checks on all applicants before providing loans.

    Guarantor finance is less common now because bad credit finance options have become more readily available. Now, it’s easier for you to access van finance with a poor credit rating without the need for guarantors.

    Understanding your options if you’re struggling to get van finance

    If your credit history is making it difficult to get approved for van finance, there are a few things to keep in mind that could potentially help.

    One

    A larger deposit: Making a bigger payment upfront could reduce the amount you need to borrow. This could help to make your monthly payments smaller and more affordable.

    Two

    Improving your credit score: A higher credit score could make you appear more reliable to lenders. Read our guide on how to improve your credit score for more information on the steps that could help boost your score.

    Three

    Joint applications: Applying for van finance with someone else who lives at your address and has a stronger credit history might improve your overall application. Learn more about joint vehicle finance and whether it’s right for you.

    Four

    Specialist lenders: Having a bad credit score or being self-employed doesn’t mean you can’t get van finance. We specialise in providing van finance to people who have been let down by other lenders.

    One

    A larger deposit: Making a bigger payment upfront could reduce the amount you need to borrow. This could help to make your monthly payments smaller and more affordable.

    Two

    Improving your credit score: A higher credit score could make you appear more reliable to lenders. Read our guide on how to improve your credit score for more information on the steps that could help boost your score.

    Three

    Joint applications: Applying for van finance with someone else who lives at your address and has a stronger credit history might improve your overall application. Learn more about joint vehicle finance and whether it’s right for you.

    Four

    Specialist lenders: Having a bad credit score or being self-employed doesn’t mean you can’t get van finance. We specialise in providing van finance to people who have been let down by other lenders.

    Finance your new van with Moneybarn

    We’re experts in helping people with bad credit or have been refused for van finance by other lenders. However, it’s important to know that we can’t guarantee van finance approval.

    As a responsible lender, we understand that you might have had difficulty with credit in the past. Our affordability checks ensure that any van finance we offer is tailored to your circumstances.

    With over 30 years of experience helping people onto a better road ahead, you could join the thousands of customers we help each month.

    Finance your new van with Moneybarn

    We’re experts in helping people with bad credit or have been refused for van finance by other lenders. However, it’s important to know that we can’t guarantee van finance approval.

    As a responsible lender, we understand that you might have had difficulty with credit in the past. Our affordability checks ensure that any van finance we offer is tailored to your circumstances.

    With over 30 years of experience helping people onto a better road ahead, you could join the thousands of customers we help each month.

    We could help, even if you:

    • Have a CCJ (County Court Judgment)
    • Are in or have had an IVA (Individual Voluntary Agreement)
    • Have a poor or no credit history
    • Are self-employed
    • Have defaulted on credit before
    • Have missed payments in the past
    • Have been discharged from bankruptcy
    • Have been refused by other lenders

    When you get a quote, we use a soft check to understand your eligibility. You’ll get an instant decision as to whether we may be able to help without impacting your credit score.

    We only use a hard check when you’ve found a van you’d like to finance and contracts are drawn up for you to sign.

    Get a quote

    How our finance works

    Conditional Sale van finance diagram

    We could help, even if you:

    • Have a CCJ (County Court Judgment)
    • Are in or have had an IVA (Individual Voluntary Agreement)
    • Have a poor or no credit history
    • Are self-employed
    • Have defaulted on credit before
    • Have missed payments in the past
    • Have been discharged from bankruptcy
    • Have been refused by other lenders

    How our finance works

    Conditional Sale van finance diagram

    When you get a quote, we use a soft check to understand your eligibility. You’ll get an instant decision as to whether we may be able to help without impacting your credit score.

    We only use a hard check when you’ve found a van you’d like to finance and contracts are drawn up for you to sign.

    Get a quote

    FAQs around guaranteed van finance

    Guaranteed van finance isn’t possible for anyone, regardless of whether they’re self-employed or in full-time employment.

    If you are self-employed or on a zero-hours contract, you might find it harder to get van finance. This is because you may have a less stable income, which could impact a lender’s assessment of your ability to make regular repayments.

    We consider applications from self-employed people. Find out more about self-employed van finance.

    Even if you have a bad credit score, or little credit history, there should be a lender out there that can help you. However, no responsible lender can claim to offer guaranteed van finance because it doesn’t exist.

    Being accepted for van finance is subject to credit and affordability checks and meeting the lender’s eligibility criteria. If a lender isn’t confident about your ability to repay what you borrow, they may not be able to offer you a loan.

    If you have bad credit and are looking for van finance, you might need to use a specialist lender who offers bad credit van finance.

    No, van finance deals with no credit checks don’t exist. Under FCA regulation, UK lenders must make credit and affordability checks before they can offer van finance.

    Lenders have the final say over whether your application is approved based on their eligibility criteria. If you have a bad credit history, you may need to use a specialist lender who has experience helping people who have been rejected before.

    Lenders who claim to offer guaranteed finance agreements of any kind can face serious consequences. By engaging in deceptive practices, they may violate consumer protection laws and could face any of the following penalties:

    Guarantor van finance is rare nowadays, as more specialist lenders can help people with bad credit. No lender can offer van finance without doing the appropriate checks, whether that’s with or without a guarantor.

    FAQs around guaranteed van finance

    Guaranteed van finance isn’t possible for anyone, regardless of whether they’re self-employed or in full-time employment.

    If you are self-employed or on a zero-hours contract, you might find it harder to get van finance. This is because you may have a less stable income, which could impact a lender’s assessment of your ability to make regular repayments.

    We consider applications from self-employed people. Find out more about self-employed van finance.

    Even if you have a bad credit score, or little credit history, there should be a lender out there that can help you. However, no responsible lender can claim to offer guaranteed van finance because it doesn’t exist.

    Being accepted for van finance is subject to credit and affordability checks and meeting the lender’s eligibility criteria. If a lender isn’t confident about your ability to repay what you borrow, they may not be able to offer you a loan.

    If you have bad credit and are looking for van finance, you might need to use a specialist lender who offers bad credit van finance.

    No, van finance deals with no credit checks don’t exist. Under FCA regulation, UK lenders must make credit and affordability checks before they can offer van finance.

    Lenders have the final say over whether your application is approved based on their eligibility criteria. If you have a bad credit history, you may need to use a specialist lender who has experience helping people who have been rejected before.

    Lenders who claim to offer guaranteed finance agreements of any kind can face serious consequences. By engaging in deceptive practices, they may violate consumer protection laws and could face any of the following penalties:

    Guarantor van finance is rare nowadays, as more specialist lenders can help people with bad credit. No lender can offer van finance without doing the appropriate checks, whether that’s with or without a guarantor.

    Van finance explained

    Learning about the different kinds of van finance and their pros and cons can help you pick the best option for you. Find out more by clicking the button below.

    Van finance explained

    What is CS finance?

    CS stands for Conditional Sale. This is the type of finance agreement we use for our van finance. Make sure you understand how it works with our guide.

    What is CS finance?

    Self-employed van finance

    Being self-employed might make it difficult to get approved. We consider applications even if you’re self-employed. Find out more below.

    Self-employed van finance

    For a better road ahead

    Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.

    Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.

    Moneybarn’s VAT registration number is 180 5559 52.

    Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)

    Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)

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    © Copyright 2024 Moneybarn Limited
    © Copyright 2024 Moneybarn Limited

    Representative example: Total amount of credit £10,317. Repayable over 58 months, 57 monthly payments of £323.44. Representative 30.7% APR (fixed). Deposit of £860.95. Total charge for credit £8,119.08. Total amount payable £19,297.03. Subject to status and affordability. You could risk losing your vehicle if you do not keep up payments.