Can I Get a Home Removals Loan? FAQs

Here are the answers to some commonly-asked questions about loans for the costs of home removals.Are there loans for home removals services?Yes.You may be able to obtain one from your bank, although banks aren’t quite as free-thinking with their lending as they once were.Alternatively, some professional removals companies, may be able to offer such assistance too.Am I guaranteed a loan?No.No lender anywhere will guarantee to offer a loan in advance. They always make their publicity “subject to status”. What that means is that they’ll want to look at your income and credit history before deciding whether or not to advance a loan.This is perfectly normal practice and you’re not being singled out. If you think about it, would you lend money to a stranger if you knew nothing about them, their reason for asking for the money and whether or not you’d stand a fair chance of getting it back?


Can I get a loan if I have a poor credit history?Very possibly yes.It depends upon the exact nature and severity of your credit history difficulties in the past. It’s been estimated that about 80% of us have some minor blemish on our credit history files (e.g. an accidentally overlooked credit card repayment one month) and typically, lenders see those as nothing.Some problems can be far more severe including being sued for loan defaults and so on.If you have some moderate problems on your files, they won’t be a showstopper, though the lenders may increase their interest rate a little to reflect the extra risk they’re taking.Why do lenders ask for receipts?If you’re getting your finance through a removals company, that probably won’t be needed. The lenders might typically send the agreed sum directly to the removals company.If you’re applying to other sources, the lenders may (though not always) wish to see evidence of the quotation in order to check that it’s reasonable. They might also ask to settle the sum directly themselves. In other cases, they may issue the loan to you but ask you to show evidence that you’ve used it for the purposes intended.This is all normal and should not be cause for concern. It’s largely to do with the lenders either trying to reduce the risks of payment default due to you spending the money on other things (e.g. gambling) or to avoid loan fraud.How do I know that I’m getting a fair interest rate?


Only by shopping around and doing some online research.How long can I borrow the money for?That’s a matter for you and the lender to discuss.Most lenders will accept repayment over a few years if the sums are larger. Do remember though that the longer the repayment period, the more the loan will typically cost you in interest payments over time.Could I pay for removals services by credit card?Yes, assuming that the company concerned accepts them.It’s worth keeping in mind that borrowing money on credit card is typically one of the most expensive ways to use what is in effect a loan (assuming you don’t repay the loan in one go before the month end or pay it off very quickly).Compare it to the costs of a purpose-specific loan from another company.

Alternative Financing for Wholesale Produce Distributors

Equipment Financing/Leasing

One avenue is equipment financing/leasing. Equipment lessors help small and medium size businesses obtain equipment financing and equipment leasing when it is not available to them through their local community bank.

The goal for a distributor of wholesale produce is to find a leasing company that can help with all of their financing needs. Some financiers look at companies with good credit while some look at companies with bad credit. Some financiers look strictly at companies with very high revenue (10 million or more). Other financiers focus on small ticket transaction with equipment costs below $100,000.

Financiers can finance equipment costing as low as 1000.00 and up to 1 million. Businesses should look for competitive lease rates and shop for equipment lines of credit, sale-leasebacks & credit application programs. Take the opportunity to get a lease quote the next time you’re in the market.

Merchant Cash Advance

It is not very typical of wholesale distributors of produce to accept debit or credit from their merchants even though it is an option. However, their merchants need money to buy the produce. Merchants can do merchant cash advances to buy your produce, which will increase your sales.

Factoring/Accounts Receivable Financing & Purchase Order Financing

One thing is certain when it comes to factoring or purchase order financing for wholesale distributors of produce: The simpler the transaction is the better because PACA comes into play. Each individual deal is looked at on a case-by-case basis.

Is PACA a Problem? Answer: The process has to be unraveled to the grower.

Factors and P.O. financers do not lend on inventory. Let’s assume that a distributor of produce is selling to a couple local supermarkets. The accounts receivable usually turns very quickly because produce is a perishable item. However, it depends on where the produce distributor is actually sourcing. If the sourcing is done with a larger distributor there probably won’t be an issue for accounts receivable financing and/or purchase order financing. However, if the sourcing is done through the growers directly, the financing has to be done more carefully.

An even better scenario is when a value-add is involved. Example: Somebody is buying green, red and yellow bell peppers from a variety of growers. They’re packaging these items up and then selling them as packaged items. Sometimes that value added process of packaging it, bulking it and then selling it will be enough for the factor or P.O. financer to look at favorably. The distributor has provided enough value-add or altered the product enough where PACA does not necessarily apply.

Another example might be a distributor of produce taking the product and cutting it up and then packaging it and then distributing it. There could be potential here because the distributor could be selling the product to large supermarket chains – so in other words the debtors could very well be very good. How they source the product will have an impact and what they do with the product after they source it will have an impact. This is the part that the factor or P.O. financer will never know until they look at the deal and this is why individual cases are touch and go.

What can be done under a purchase order program?

P.O. financers like to finance finished goods being dropped shipped to an end customer. They are better at providing financing when there is a single customer and a single supplier.

Let’s say a produce distributor has a bunch of orders and sometimes there are problems financing the product. The P.O. Financer will want someone who has a big order (at least $50,000.00 or more) from a major supermarket. The P.O. financer will want to hear something like this from the produce distributor: ” I buy all the product I need from one grower all at once that I can have hauled over to the supermarket and I don’t ever touch the product. I am not going to take it into my warehouse and I am not going to do anything to it like wash it or package it. The only thing I do is to obtain the order from the supermarket and I place the order with my grower and my grower drop ships it over to the supermarket. “

This is the ideal scenario for a P.O. financer. There is one supplier and one buyer and the distributor never touches the inventory. It is an automatic deal killer (for P.O. financing and not factoring) when the distributor touches the inventory. The P.O. financer will have paid the grower for the goods so the P.O. financer knows for sure the grower got paid and then the invoice is created. When this happens the P.O. financer might do the factoring as well or there might be another lender in place (either another factor or an asset-based lender). P.O. financing always comes with an exit strategy and it is always another lender or the company that did the P.O. financing who can then come in and factor the receivables.

The exit strategy is simple: When the goods are delivered the invoice is created and then someone has to pay back the purchase order facility. It is a little easier when the same company does the P.O. financing and the factoring because an inter-creditor agreement does not have to be made.

Sometimes P.O. financing can’t be done but factoring can be.

Let’s say the distributor buys from different growers and is carrying a bunch of different products. The distributor is going to warehouse it and deliver it based on the need for their clients. This would be ineligible for P.O. financing but not for factoring (P.O. Finance companies never want to finance goods that are going to be placed into their warehouse to build up inventory). The factor will consider that the distributor is buying the goods from different growers. Factors know that if growers don’t get paid it is like a mechanics lien for a contractor. A lien can be put on the receivable all the way up to the end buyer so anyone caught in the middle does not have any rights or claims.

The idea is to make sure that the suppliers are being paid because PACA was created to protect the farmers/growers in the United States. Further, if the supplier is not the end grower then the financer will not have any way to know if the end grower gets paid.

Example: A fresh fruit distributor is buying a big inventory. Some of the inventory is converted into fruit cups/cocktails. They’re cutting up and packaging the fruit as fruit juice and family packs and selling the product to a large supermarket. In other words they have almost altered the product completely. Factoring can be considered for this type of scenario. The product has been altered but it is still fresh fruit and the distributor has provided a value-add.

The idea for factoring/P.O. Financing is to get into the nuts and bolts of every single deal to ascertain if it is doable.