Liberty Financial is probably more commonly known for their ability to write sub-prime loans where other lenders wouldn’t entertain these applications.
A sub-prime loan is for the type of client that may have some adverse credit history or circumstances in their application which would not allow them to qualify for a standard car loan. These may be clients that may have been previously bankrupt or have had poor credit history with other lenders or perhaps defaults showing on their credit file.
Liberty Financial will give these clients another chance if the client can demonstrate that they have improved their financial position.
The way that Liberty will assess this, is by not only reviewing the client’s application, which will show whether they have stability in their employment or residence, but they will go through the client’s bank statements to ascertain as to whether the applicant is not spending more than they earn and they will look at things on their bank statements such as where their money is going, or if their accounts have multiple direct debit dishonours or their account going into a negative position.
If the client can show that they are able to handle their finances adequately, Liberty Financial will look at approving the application subject to all other normal lending criteria being satisfactory.
Liberty’s interest rates may be higher for the sub-prime client, but they give them the opportunity to build their credit history again, as most other lenders don’t want to be the first one to give them another chance and can often be the only solution for certain applicants.
Liberty also do cater for the ‘prime’ client and can still offer quite competitive interest rates and are much more flexible on the age of the vehicle being used as security than what other lenders are, however they are restricting to the fact that they will only finance vehicles being purchased through licenced dealers.
Liberty Financial definitely has its place in the market, but recently they have also been trying to attract the stronger client, so they have also come up with more competitive packages to suit that type of client alongside their ability to finance the sub-prime client.