Protecting Your Credit and Ensuring Good Conduct with Asset Finance: A Guide for SMEs

The easiest way to maintain a positive credit file is to make your loan repayments on time, lenders will often move the scheduled date each month to align with your cash flow if the request is made.

Before agreeing to any asset finance deal, it’s important to fully understand the terms and conditions, including payment schedules, interest rates, and any potential fees for late payments.

Ensure your business has sufficient cash flow to meet your financial obligations. Asset finance often involves regular repayments, which can strain your finances if not properly managed.

Sometimes, life throws curveballs, and you may find yourself in a situation where you can’t make a payment. This could be due to unexpected cash flow issues, a downturn in business, or other financial challenges. While this can be a stressful situation, it’s important to know that there are ways to mitigate the damage—by being proactive and communicating with your lender or broker.

If you are unable to make a payment, the first thing you should do is contact your broker or lender immediately. Many businesses feel uncomfortable doing this, thinking it will reflect poorly on them or result in a penalty. However, open communication is crucial.

Here’s why being proactive helps:

When you let your lender or broker know in advance that you might miss a payment, they may be able to offer solutions such as a payment extension, repayment plan, or even temporary deferment. The earlier you communicate, the better the chance of avoiding formal defaults.

Proactively reaching out and negotiating an alternate payment schedule can help you avoid missed payments being reported to credit bureaus. It’s always better to have a plan in place than to wait until the issue worsens.

Lenders appreciate businesses that are upfront about their situation. Transparent communication can help you build a stronger relationship with your lender, and they may be more likely to work with you if financial issues arise in the future.

As an asset finance broker specialising in SMEs, we don’t just help you secure the right financing—we’re also here to ensure your financial health remains strong over the long term. We believe in fostering positive conduct in all your financial dealings, ensuring that your credit file stays intact, and helping you navigate any difficulties that may arise.

Our team offers expert advice on structuring asset finance deals in a way that supports your cash flow and business objectives. We also work closely with you to monitor your loans and provide guidance should you encounter any issues making payments. With us by your side, you’ll have peace of mind knowing that you’re making informed, responsible financial decisions.

• Maintaining good conduct in asset finance is crucial for protecting your credit file and securing future funding.
• Always communicate with your lender or broker if you’re unable to make a payment—being proactive is key to avoiding serious consequences.
• If you’re in financial trouble, remember that open dialogue with your lender may result in temporary relief, such as an extension or modified payment plan.
• Partnering with an experienced asset finance broker like QPF ensures that your business has the support it needs to succeed financially.

At QPF, we’re here to guide you through the asset finance process, ensuring that your business has the resources to grow while keeping your financial future secure. If you have any concerns about your current asset finance agreements or want to learn more about how we can assist you, don’t hesitate to get in touch.