The situation
The following is an anonymised composite reflecting a recurring pattern, not a specific settled deal. An owner-driver in the transport industry has two historical court judgments on their credit file, arising from a difficult period several years ago, but has been trading steadily and profitably since, with a new subcontracting opportunity requiring a larger truck than they currently operate.
Why it's hard
Judgments on a credit file are treated seriously by most lenders, and many mainstream and bank equipment financiers apply an automatic decline regardless of how long ago the judgments were recorded or how the business has performed since. The opportunity itself is also time-sensitive, since the subcontracting work is contingent on having suitable equipment in place.
How it can be structured
A chattel mortgage through a specialist fund or private lender experienced with credit-impaired transport operators is the standard structure, secured by the truck itself and assessed on current trading performance, recent bank statements and a clear account of what caused the judgments, rather than the judgments being treated as automatically disqualifying; the exit is ordinary servicing from the subcontracting and existing trading income. Providing documentation of the new contract or work opportunity alongside the equipment finance application strengthens the file considerably, since it demonstrates the equipment will directly support additional, verifiable revenue rather than simply replacing existing capacity. A slightly larger deposit than a clean-credit borrower might need to contribute is common in this category, reducing the lender's exposure and often improving the rate offered.
Specialist lenders in this category will typically distinguish between judgments arising from a genuine, explainable trading dispute and any pattern suggesting broader financial mismanagement, so a clear, honest account of what happened, alongside evidence the judgments have since been satisfied, matters more to the outcome than the mere existence of the judgments on the file. Recent bank statements showing consistent, growing trading income are often weighted more heavily in this assessment than the historical credit file itself, since they demonstrate the operator's current conduct rather than a snapshot from several years ago. Where the truck being purchased is well-established in the market with a strong resale value, this can partially offset the credit history in the lender's overall risk view, since the asset itself provides a meaningful fallback position. Some lenders will also consider a slightly shorter initial term with an option to extend once a track record of on-time payments has been established under the new facility, giving the operator a path to better terms without requiring a full refinance.
What it typically costs
Pricing reflects the credit history being accommodated, generally above the rate a clean-credit operator would receive for the same truck, quoted on enquiry once a lender has reviewed the judgments, their cause and current trading performance. Costs are otherwise standard for asset finance, with the truck itself as security.
Timeline
- Same day — scoping call confirming the judgments, current trading and the truck being purchased.
- 2–5 business days — document collection, including bank statements and the new contract details.
- 3–7 business days — lender matching and submission to specialist funds comfortable with this profile.
- 2–5 business days — approval and settlement.
Questions we'd ask you
- What caused the judgments, and are they now satisfied or still outstanding?
- What has your trading income looked like over the past six to twelve months?
- Do you have documentation of the new subcontracting opportunity requiring this truck?
- What deposit are you able to contribute toward the purchase?
- Is the truck new or used, and from a dealer or private sale?
Related
Asset & equipment finance · Impaired credit commercial loans · Transport & logistics · Chattel mortgage