Hospitality Sector hit by finance firms refusing credit

November 6, 2020

We recently wrote about many of the funding houses declining applications for businesses small and large who have taken the bounce-back loans. But we have received bulletins from a couple of our finance companies who have now refused to take applications from business in the hospitality sector and people working within the industry.

The companies who have sent out these notifications have stated that they wanted to prevent customers being declined the credit lines, which in turn could affect their credit rating.

Multiple Credit Checks can harm

We all know that by shopping around the market place, especially after being declined, can have a huge affect on your credit score. This is due many of the companies looking at how many credit checks a customer has had in the last 3/12 months.

So its vitally important that you make the broker or comapny providing the quote that you work within the hospitality industry.

Business Credit Checks

We understand from many of our clients in the hospitality industry have already been hard hit, we feel that this is an additional blow.

Especially for those businesses who have adapted and changed their business model to work alongside lockdowns and restrictions.

“Many of the businesses in the hospitality industry have had to rely on bounce-back loans to adapt their businesses, with some of our clients using the funds to short-term lease vans for food and drink deliveries” expalins Rhys Adams, Director at Cocoon Vehicles.

“Not everyone wants to short-term lease, some see the adaptions as a long-term project and therefore require the finance from contract hire & leasing companies to fund these vehicles.”

Cocoon Can Help

Whether your a individual working in the hospitality industry and you need a car or you are a business working in the sector, we can look at using short-term car & van leases to keep your business mobile.

The beauty of short-term leases, is that they can be flexible, and can adapt with your business. With flexi-rent, should you no longer need the vehicle, it can be off hired with only 5 working days notice.

We will look at all businesses and our experienced underwriters ill put terms in place that work for both parties.

Find out more

Find out more from our sales team by calling us on 01332 290173 or use our ONLINE FORM to see if we can help you.

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There are so many circumstances where you may need that flexible vehicle, just call the team on 0330 330 9425 to see how we can help you!

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