Has your business been turned down for car finance or leasing due to Bounce-Back loans?


Higher Declines due to Bounce-Back Loan

Whilst the government has provided quite a few different schemes due to the Covid-19 pandemic such as the bounce-back loans and payment breaks, we’re seeing a huge increase of finance declines for businesses who have taken up on the offers.

Why are they declining?

We’re not totally sure the reasoning behind the declines, however, as the loan still sits as a future liability our experienced underwriters have said this could be due to the higher risks associated with repaying this loan.

We’re all aware of the fraudulent claims for the bounce-back loans that have been processed over the previous months, with even dormant companies still managing to gain access to these funds, with little or no effort as the government guarantees these loans.

Mike, our experienced underwriter says “Many of the finance houses are looking at the payment breaks and the bounce-back loans that the company could be volatile and thats the reason why the company has opted to go down this rate.

“Many accountancy firms have pushed their clients to actually take this route as its a cheap rate of finance, but this has caused more harm than good.”

Alternative Options

Many of the brokers I speak to with similar businesses have said that even by spread betting proposals across multiple funding houses, it hasn’t resulted back in many positives.

Mike also explains that this can also have a negative impact on your credit scores, the more credit checks carried out, the less likely you are to be accepted.

Short-Term Car Lease route

Another option is to apply for a credit line with Cocoon Vehicles and take a short-term vehicle. This can be on a fixed or a flexible basis and we have a huge range of vehicles on both programs.

Its really easy to get an account open and you can apply online within 5 minutes. Our underwriting team will then request documents and information to comply with anti-money laundering regulations and compliance.

Depending on the history of your business or personal circumstances, you may be restricted to a credit limit or certain funders and/or suppliers.

Once you’ve ran the car for a few months, you can request a credit limit or account review for renewed terms. When you think you’re ready for long-term, you can then take advantage of our Find a Car Lease service.

More Information

If you would like any further information about any of our product and services, then please get in touch with the Cocoon Vehicles team on 01332 290173 or complete the online form below.

Rebecca joined the Cocoon Vehicles team in 2018 after running and selling a successful financial services business offering pension, investments and mortgages. Today, Rebeccas goal is to provide the best possible customer service along with news that you will want to read.

Hottest Car
Subscription Deals
See our latest Hottest Offers on our flexible car subscription and lease deals available from Cocoon Vehicles.

Subscribe to
Our Whatsapp Channel

Stay up to date with our latest articles, special offers and special stock cars by following our Whatsappp Channel.

Article Contents

VW ID. Buzz Cargo in White and Purple
Short-Term Van Offers for June 2024
Mercedes-Benz A-Class Hatchback in White, head-on shot
Mercedes-Benz A-Class Alternatives
Volkswagen ID. Buzz Cargo on Short-Term Lease
Date Archives
Damian McCann

“Excellent service from start to finish from the Cocoon team. Very easy to get a lease in place with a professional and rapid handover service.

Read Review »
Paul Halliday

“I found dealing with Cocoon very quick, simple and easy and their people very professional.” Paul HallidayVolkswagen Golf on a Flexible Car Lease

Read Review »
See Our In-Stock Vehicles
Over 200 Physical Stock vehicles ready-to-go on our flexible subscription program.

Get In Touch

Complete the form below and a member of the team will come back to you during office hours.

Latest Flexible Car Lease Deals

Affordable and Flexible month-to-month car leases for you or your business

Short-Term Car Leases

6-12 Month Short-Term Car Leases on a fantastic range of brand new cars.

Short-Term Van Leases

We offer a range of Commercial Vehicles on our 6-12 month leases.

Search for a car...

Cocoon Logo

Before You Go...

Why not ‘follow’ us on our Whatsapp channel and be informed of our latest news, special offers and stock. Some offers are exclusive and might not even make it to our website…