Severe financial situations should be tackled with the utmost care, they always hamper progress. For instance, CCJ is a pitiful situation, which leaves nothing untouched. The situation is even more severe for a businessperson. With so many things to handle as a one-man army, one cannot expect to win the race without preventive measures.
Apply for CCJ loans
A business needs a constant flow of money and for that, loans can become a great source of support. In fact, loans are vital in a business. But while in CCJ, it becomes difficult to even imagine that some lenders can dare to lend you money. However, the recent change that has come into the finance industry has brought the blessing of new-age online lending.
This type of lending is not only about providing money to the borrowers, but it is also focussed to facilitate revival in financial lives. Whether it is about an individual or a business, practical solutions are given to bring a positive change in the current situation. The CCJ loans by direct lender are such an initiative in which the loan company provides funds to those with CCJ issues.
The loan deals are customized intentionally to facilitate easy repayment. The borrower pays the installments on time and with every timely repayment, the credit rating improves. This is important because CCJ relates to a very bad credit score situation. The application procedure for CCJ loans is not complicated. You need to apply online as only direct lenders provide such types of loans.
However, these loans are primarily to help you reduce the impact of CCJ. The loan amount is small, as the lender cannot take a big risk. You just improve your credit score and then apply for a business loan with a bigger loan amount.
Pay off all the debts within one month after County Court Judgement (CCJ)
Perhaps nothing else can be better than this solution. If you are not aware, this information can help you in many ways. If possible, pay off all your debts within one month. This will set you free from the embarrassing mark of CCJ. Then if you apply for the loan for your business, you can easily get a smooth approval.
Even one day late after the month will be useless. The rules on CCJ are extremely strict and your second chance to get back to normality is subject to many dos and don’ts. This gives you all the reasons to do every possible thing to get rid of CCJ.
Stay away from myths
One of the biggest reasons that make businesspersons lose their eligibility on business loans is the presence of myths. Half information and ignorance are the two major factors that give birth to them. Stay away from myths and you can qualify for loans with less struggle. At least, there will be no unnecessary obstructions.
- CCJs prevent you from attaining loan approval
This is perhaps the worst myth that exploits many businesspersons and they lose their chance to revive. Do not let it affect your chances of obtaining funds. The reality is, if you have paid all your obligations in the last 6 months after County Court Judgement, you can apply and get funds from a specialized lender.
- CCJ will be removed automatically if you ignore for 6 years
Are you serious? This cannot be one of the realities you are carrying in your mind. This is completely wrong. Yes, normally it is considered that one cannot force you to pay a debt after their due date. Still, the creditor can file a new case and then you may need to face the proceedings. It is better to play safe beforehand. If you are applying for a loan after 6 years thinking that bad days are gone then this point should come in your mind.
- CCJs are automatically updated as ‘satisfied’ if you pay the debts
No, not correct. Once you pay off the debts, you have to submit in written form. This should be sent to the court to get the CCJ status updated with the latest action you have taken on your situation. While applying for the loan it can be a big loss. You may apply to the loan thinking that you have paid off all the debt and now the lender will give you a smooth approval. But this can be financial suicide and can be a big loss for your business. If the lender finds the status is updated as CCJ only, definitely you are prone to rejection.
- CCJs are possible to avoid if you leave the country
There are international actions like the European Enforcement Order for those who try to escape CCJ in this way. No matter whichever country you go to, the rules and regulations on CCJ are decided and strong. The safest way is to pay the debts and stay away from any such international action.
The above things can give you a smooth approval in loan despite CCJ. Read them, follow them and have a better tomorrow.