A commercial vehicle that is written off in an accident or damaged beyond economic repair can stop your operations the same day. Whether it is a refrigerated van that carries your stock, a works vehicle that gets your trades team on site, or a delivery lorry, waiting for the insurance settlement before ordering a replacement may mean weeks of lost revenue.
The insurance-to-road-gap problem
Insurers typically process write-off settlements within two to four weeks, sometimes longer if liability is disputed or the vehicle value is contested. Dealers and leasing companies may also have a delay between order and delivery. A Creditcorp facility can fund the deposit and purchase price of a replacement immediately, so your operations resume without interruption, and you repay once the insurer pays out.
Buying versus leasing in an emergency
- Buying outright with a facility gives you full ownership immediately and avoids a lease agreement drafted under pressure.
- A short-term Creditcorp facility can also fund a deposit on a finance lease if the dealer requires one before releasing the vehicle.
- If a used-trade vehicle is available locally, a smaller facility can secure it in days rather than waiting for a dealer delivery slot.
What to check before drawing funds
Confirm your insurer's payout timeline in writing so you can structure the repayment of the facility. Also check whether the write-off settlement will cover the full replacement cost or whether there is a gap you will need to fund from trading income. Either way, a Creditcorp facility can be sized to cover exactly what you need (illustrative approach, terms depend on your application).
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Financing a commercial vehicle for your business, Replacing failed equipment fast.