Financing Options, Poor Credit, Sizeable Down Payment

Discussion in 'Business Operations' started by MrPostman, Feb 16, 2018.

  1. MrPostman

    MrPostman LawnSite Member
    Messages: 7

    I am interested to learn if there is a magic down payment percentage that would qualify one with bad credit for financing.

    My credit is just under 600 and I have no collections or bankruptcies etc. I have been a cash consumer since I got into financial trouble with credit cards at an early age. I suffer from having zero open credit lines and obviously an "average age of accounts" of 0, but I dont owe anyone, which apparently isnt good either!

    My local Ferris dealer works with Sheffield, as most dealers do. If I apply and get denied, will the lender counter offer? ie. "Denied, requires larger down payment"? or will it just be "Denied"?

    If the machine I am interested in is $10k, whats a reasonable number I can offer as a down payment to ensure approval? I would like to offer $2500 down but I could go as high as $5k if I had too. I dont want to offer $5k down, but I could.

    There are plenty of used machines in my area, but honestly paying $5k for a used mower is not for me.
  2. Greencuts518

    Greencuts518 LawnSite Fanatic
    Messages: 6,220

    When I financed my scag through Sheffield years ago I put 50% down..the less they have to lend you is better except for 0% but that's for people with great credit. Bradley will finance you a mower with 600 score in house financing. But stander is biggest mower they got...I think
    Last edited: Feb 16, 2018
  3. jc1

    jc1 LawnSite Silver Member
    Messages: 2,417

    I bet a call to sheffield then filling out an application would provide an answer quickly.
    knox gsl likes this.
  4. Kennedylawns

    Kennedylawns LawnSite Member
    Messages: 204

    Do you happen to know any local bankers ( preferably ) at a smaller bank ? If it’s a business loan then they tend to be more lenient and it’s done on a personal level. That’s how mine is but I make sure my payments to my banker go out on time every month.
  5. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 15,167

    The generic answer is "usually"

    I also 'think' yard card takes higher risk loans, but to be honest Sheffield over that past 2-3 decades since their existence specializes in the type of credit you are looking for.

    In my experience sheffield usually only refuses based on too high a debt to income ratio.
    but the only way to know is to talk to your creditor/loan officer.
  6. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Messages: 4,417

    You can apply with Sheffield online without the dealer knowing. They will most likely email you to call and they will give you options.

    Google advance acceptance. They are out of mn and tend to lend to higher risk also.

    Either way, how the economy is going they are letting higher risks get approved. If you can't get approved now, it will be hard ever.

    Small banks are good to work with also. Later on they can help you also.
    hort101 likes this.
  7. MrPostman

    MrPostman LawnSite Member
    Messages: 7

    I emailed them this weekend echoing the points of concern that I laid out in this post. Here was their response.

    "...Having read your email it may be difficult to overcome the credit score since we are currently a prime lender and typically look for scores around 660 and above. We do get loans approved lower than the 660 credit score but it all depends on what we see after viewing all aspects of the application..."

    I think I'll call them and see if I can talk to an actual loan officer/decision maker
  8. Greencuts518

    Greencuts518 LawnSite Fanatic
    Messages: 6,220

    Yes Bradley in house financing prefers 660 and above but they do offer higher rates for lower credit score.. just an option. I'm most likely buying used as I hate payments.
  9. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 15,167

    Just fill out the app

    Put in there how much you intend to put as a down payment.

    They have a system that works a certain way for a certain reason, there is no sweet talking loan officer option.
    If you’re denied
    Take some of the money you would have put into the down on the mower and take out a secured credit card.

    After about a year of charging to and making your own payments
    You’ll probably have a 660
    And get a loan then .
    Steve, whiffyspark and Greencuts518 like this.
  10. MrPostman

    MrPostman LawnSite Member
    Messages: 7

    All good points, but I need a mower.

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