point of sale...point of sale...
taxi finanCe: what Do the lenDers look for? Most vehicles for taxi work are bought using motor finance. What do lenders examine when they consider your application? The Taxi Shop's Josh Rhynas explains.
TRACEABILITY The lender will want to know that they have the correct address for a customer and will use the
electoral register to confirm a place of residence. It is key that a customer registers themselves on the electoral register as soon as they change address so that they will tick the traceability box and improve their credit score.
The lender will also check for entries on the credit register as evidence of the applicant being at the address. However, if the cus- tomer is not on the electoral register they will need proof that they live at the address by providing a recent utility bill or bank state- ment.
AFFORDABILITY The taxi trade has traditionally operated with cash and, despite the vast range of Electronic Payment Technology now more widely available than ever, the use of cash is still widespread. If the cash is not deposited via a Bank or Building Society it can often cause issues when applying for loans due to the difficulty in confirming affordability. This is a key factor in the lender’s decision making process. However, in order to assess the affordability of a loan, a lender will often ask for gross annual income and will assess any information detailed on the credit register to see if they can identify whether the customer has had experience of a similar size loan to that which is being applied for. In the absence of this they may ask to see the last three months bank statements. Gross Annual Income: The lender will want to know what the cus- tomer earns annually and assess the impact that the new or additional vehicle will have on their disposable income. This information is used by the lender to establish the affordability of the loan, so let them know. Credit Limits: Another factor the customer needs to consider is to try to leave room on their credit cards as a lender views the customers usage of credit cards as an important part of the assess- ment. Existing Agreements - Conduct: It is very important that a customer keeps the payments on any existing agreement up to date and lets the lender know if this will be settled or if the loan is required in addition to any existing agreements. Bank Statements: As a part of the affordability assessment, the lender may ask to see a customer’s bank statement to check whether the loan appears to be affordable, and will also study the statements to see if financial commitments are being made on time. From the bank statements, the lender will learn about the appli- cant’s attitude to repayment and if commitments are being paid on time. Providing commitments are being met, and the account is utilised properly i.e. no unauthorised borrowings/within any over- draft limit, the bank statements will add value to the application.
HISTORIC CREDIT PROBLEMS The Taxi Shop has worked hard to establish relationships with lenders who consider customers with previous issues on their credit file. So, if a customer has had historic or even recent credit issues, you can be assured The Taxi Shop will investigate their case fully to try to assist with the purchase of a new vehicle. Lenders understand that customers can go through financial
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difficulties from time to time but it is important that a lender can see that there have been attempts to repay the debts. It is also cru- cial to remember to repay any historic debt as well as ensuring current financial commitments (however small) are kept up to date. These types of actions will be key in demonstrating their financial position is now operating properly.
Summary: how to profile your application Make sure you are on the electoral register Be up front with your gross annual income figure Keep some room on your credit card/overdraft limits Keep your payments on any existing commitments up to date (espe- cially in the preceding months before applying for a new loan) Keep your bank account in order in case you need to provide the last three months’ statements Make arrangements to pay off any historic debt, keep copies of any arrangement that you have entered into to confirm you are making an attempt to repay
For more information please call 01525 717 695, visit our website
www.thetaxishop.com or see our advert on page 21.
Control Driver Payments as never Before
At DriversPay we we have over 50 years of combined taxi industry experi- ence. Mike Tyres (Director) and Lee
Kerr (Sales Director) both have extensive knowledge of phone sys- tems and mobile data sims and terminals, and Andy Baxter (Technical Director) spent three years as a Product Manager in a large taxi dispatch based software house. Mike noticed during various site visits that taxi companies were taking huge amounts of time collecting driver rents. After talking to Lee, they decided to build an affordable solution to remove the pain of rent day. DriversPay Kiosk shows drivers exactly how much they owe you. We take their balance directly from your dispatch system and display it in a concise, simple to understand summary. Drivers then have the option to pay by cash or card into the kiosk. Andy became involved after speaking to Mike about buying a kiosk. Over the next four months we developed Fusion, an extremely informative portal that displays all your driver rent balances in one place, with automatic driver lockout for non-payment and unlock when desired balance is reached. Add to this, individual driver “Grace” balances and our Fusion app that allows drivers to pay directly from their mobile device, and you can see that DriversPay is the total solution. Completely remove the need for paperwork and rent packets being collected. Utilise your staff more efficiently and effectively. We guarantee no leakage, with one-click machine access through Fusion you can see exactly how much is in your kiosk and how much has been paid in via App and card. We are truly independent; cashless payments are facilitated by external banking companies. (We are not a taxi company, all your information is encrypted and stored safely in Amazon Azure and is fully GDPR compliant).
To find out more call 03300 101842, emal
sales@driverspay.com or see our advert on page 18.
MARCH 2019
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