Frequently Asked Questions
What checks & balances do Banks & Finance Companies complete to APPROVE or REJECT a loan application?
Loan decisions are made after credit checks and investigations of Applicant(s) details are completed.
The important factors analysed are as follows:
Capacity: Is the Applicant(s) employment details correct? Is the Applicant(s) income sufficient to cover all expenses, current bills, and the new loan repayment?
Credit: Do the Applicant(s) have a confirmable good credit rating or were defaults and or late payment history details noted?
Collateral: Do the Applicant(s) have a strong asset position?
Character: Did the credit check and reference check indicate that the Applicant was of good standing and would repay the debt?
What can Applicant(s) do to achieve the best possible answer to their application?
Very easy. When applying, make sure that you provide the following information at the time of application:
- Income statements covering at least 3 months (All borrowers)
- A copy of your last group certificate
- A copy of your last profit loss and balance sheet if your are self employed
- Copies of bank statements that confirm family payments etc. (if applicable)
- Copies of recent rent receipts, such as a phone bill etc. that can be used to confirm your address
- Copy of all borrowers' drivers licences
- Proof of payment of any default (if applicable)
- Any reference letters you may have
How can WA Finance help with an Applicant(s) loan application?
We have a very simple, methodical 3 stage process:
Stage One: is the most important as we need to understand as much as we can about your financial & credit position and the goods the applicant(s) wish to purchase in order to obtain the best possible outcome.
Stage Two: is to obtain a thorough understanding of the loan proposition. We find a Lender who offers the best outcome for the client and the goods being purchased.
Stage Three: is to ensure that the transaction is documented efficiently in a way that is satisfactory to our Customer(s)
Why are loan applications REJECTED by Banks & Finance Companies?
A lot of Finance Brokers and Bank Staff do not have the experience, knowledge, or life experience and the enthusiasm to adequately manage Applicant(s) enquires. As soon as they are faced with a challenging issue, the “POINT SYSTEM" criteria raises its ugly head. It then all becomes 'too hard' and the deal falls apart and the finance application fails.
At WA Finance, apart from genuinely caring about our clients and seeking to establish relationships, we have the experience to get the results for you. We have lent or arranged loans for over $1 Billion to clients over the past decade for buying cars, boats, equipment, etc. We take the time to obtain the facts and get to know our Applicant(s) and their financial positions before we recommend and submit a loan proposition.
This is the simple difference which gives us an edge.
Is Dealer Finance a good deal?
Car or Boat dealers usually offer “ONE” source of finance. Some even say they offer 'Bank Finance' when in fact the loan comes from a bank owned finance company! We are not saying that’s bad, because we all know banks can charge more anyway. The fact remains that they are unable to provide clients with a “CHOICE” of loan product, which probably accounts for their “PUSHY” nature. No choice means that captive clients most probably will not get the best deal, pay too much for the loan, and pay too much for their Warranty Cover policies etc.
WA Finance is purposely linked to a number of financial institutions in order to provide prospective clients with far more options for their loan propositions. Brokers, unlike car dealer finance operators, are required to be licenced and their day to day business activities are scrutinized by the Finance brokers Code of Conduct legislation. Car & Boat dealers operate outside this very strict licencing code.
Credit Reports
Can I obtain a copy of my personal Credit Report?
Yes, very easily. Simply, contact Baycorp Advantage on 1300 762 207 and their staff will explain how this can be arranged.
Can I obtain Finance if I have a history of slow repayments & defaults?
A major concern of Lenders in such situations is whether the Applicants avoid payment or if there were any extenuating circumstances? Consumers must acknowledge that the responsibility of all Lenders is to their shareholders. In other words, any lending to a borrower with a Slow credit rating may have to be satisfactorily secured and provide a “NIL RISK” position for the lender considering the loan proposition. This may mean that the client’s approval may be subject to additional deposit, a higher interest rate, etc. However, it does provide the client with both an opportunity to borrow which in turn provides the client with an opportunity to re-establish a credit rating.
Private Sale loans for cars, boats, and equipment
Is it Safe buying a CAR, BOAT, or EQUIPMENT privately?
Yes. What most people don’t realize is that when a Financier finances a private sale, they employ similar checks & balances as dealers do.
What about the “WARRANTY” on a private sale car purchase?
Dealers will avoid telling you this but, even through private sales, clients can buy the same Warranty products that dealers offer and the good news is, usually at a much CHEAPER cost.
Is car Insurance required on a car loan?
Yes, and correctly so! The lender requires the goods financed to be comprehensively insured so that in the event of loss the insured value at the time of loss is applied to the current loan debt.
What happens if I am not insured?
If you have a secured loan and you are not fully insured, the Lender has the legal right to demand that cover be taken out immediately or in extreme cases redeem the goods until appropriate cover is put in place by the Borrower. In the event that the goods were written off and you are obviously not covered, you are still responsibile to repay the debt in full. If you are not insured and find yourself unable to pay the insurance, you should notify the lender and seek their assistance.
Do we provide Dealer Finance on their cars & boats?
Yes, a large volume of our business is providing new and used finance on cars, boats, and trucks, bought by our clients, from dealers. Usually, the process started from our client’s original Pre-Approval application.
Is “Broker Finance” different to “Dealer Finance”?
Yes, in many ways, apart from the fact that both broker finance and dealer finance generally are able to be accredited to the same financiers.
Dealers tend to support 1 financier only. This is usually due to the fact that their businesses borrow for stock from that lender.
When a dealer processes a client’s loan application there is usually only one option given to the client, arguably like a “take it or leave it” situation.
Without real choice, the question you would have to consider would be, did the client receive the best deal?
Brokers are often accredited to a number of lenders so that they are then able to provide their clients with far more loan options.
Will having a Default stop me from obtaining a car loan?
Financial institutions tend to take a very dim view when they are processing a loan application and become aware that the client has a record of a payment default, a writ, prior bankruptcy, etc. on their credit file. They usually demonstrate a reluctance to pursue the process which means they are not really interested in knowing the causes behind the default, or even bothering to confirm whether the matter was a significant issue to impact on the final decision. It simply becomes all too hard.
At WA Finance, with a thorough understanding of an Applicant(s) position we investigate the history behind the credit problem with the client before we submit the application. In most cases we establish that the default did not arise because the client refused to pay, it occurred because of a temporary situation like unemployment or sickness.