Financing Your Business's Next Step in New Brunswick
Navigating financial changes after a divorce is challenging, especially when your livelihood depends on a reliable commercial van. This calculator is specifically designed for New Brunswick business owners and entrepreneurs in a post-divorce situation, helping you understand the real costs of a 12-month loan for a commercial vehicle, including the 15% HST.
Lenders understand that life events happen. A divorce can impact your credit score, but it doesn't close the door on financing. In fact, financing an income-producing asset like a commercial van is often viewed more favourably than a personal vehicle loan. Let's break down the numbers for your scenario.
How This Calculator Works
Our tool simplifies the financing process by focusing on the key factors for your situation in New Brunswick:
- Vehicle Price: The sticker price of the commercial van.
- Down Payment: The cash you're putting towards the purchase. A larger down payment reduces your loan amount and can improve approval odds.
- Trade-in Value: The value of any vehicle you're trading in.
The calculator automatically applies New Brunswick's 15% Harmonized Sales Tax (HST) to the vehicle's price after deducting your trade-in value, giving you a precise monthly payment estimate for a 12-month term.
The New Brunswick Factor: 15% HST on Commercial Vans
In New Brunswick, the 15% HST is a significant part of your total cost. It's crucial to factor this into your budget. For example, on a $35,000 commercial van, the tax alone is $5,250. This amount is added to your loan, increasing the total you need to finance.
Example Calculation:
- Vehicle Price: $35,000
- HST (15%): $5,250
- Total Price Before Loan: $40,250
Example 12-Month Commercial Van Loan Scenarios (New Brunswick)
A 12-month term means aggressive, high payments but allows you to own the vehicle outright very quickly. This strategy is best for businesses with strong, predictable cash flow. Below are examples based on a post-divorce credit profile, which may see interest rates between 8.99% and 14.99%.
| Vehicle Price | Total with 15% NB HST | Estimated Monthly Payment (12 Months) |
|---|---|---|
| $25,000 | $28,750 | ~$2,525 - $2,590 |
| $35,000 | $40,250 | ~$3,535 - $3,625 |
| $45,000 | $51,750 | ~$4,545 - $4,660 |
Approval Odds: Good, with Documentation
Your approval odds are strong, even with a credit profile affected by a divorce. Lenders will prioritize your ability to repay the loan now. The key is demonstrating stable, current income. Since you're financing a commercial van, lenders see it as an investment in your business's ability to generate more income.
If you've recently become self-employed or your income structure has changed, traditional pay stubs might not tell the whole story. This is where bank statements become your most powerful tool. For a deeper dive, see our guide: Self-Employed? Your Bank Statement is Our 'Income Proof'. Similarly, if your work involves deliveries, that history itself can be a powerful asset; as we explain, Your Deliveries Are Your Credit. Get the Car.
Even if the divorce has left you with some financial bruises like outstanding debts, financing is still very possible. Lenders who specialize in these situations look at your whole profile. If you're dealing with this, you may find our article on Active Collections? Your Car Loan Just Got Active, Toronto! helpful, as the principles apply across Canada.
Frequently Asked Questions
Can I get a commercial van loan in New Brunswick right after my divorce is finalized?
Yes. The most important factor for lenders is your current financial stability and income, not your marital status. As long as you can provide documentation of your new, independent income (such as business bank statements, contracts, or invoices), you can apply for and be approved for a loan immediately following a divorce.
How does the 15% HST in New Brunswick affect my van loan?
The 15% HST is calculated on the net price of the vehicle and is added to the total amount you finance. For a $40,000 van, this adds $6,000 to the loan principal. This increases your monthly payment and the total interest paid over the life of the loan. As a business owner, you may be able to claim this HST as an Input Tax Credit (ITC), but you still need to finance the full amount upfront.
Is a 12-month loan term for a commercial van a good idea?
A 12-month term is a very aggressive repayment strategy. The benefit is that you will own the van free and clear in one year, saving a significant amount on interest. However, it results in extremely high monthly payments. This is only recommended if your business has very strong and reliable monthly cash flow that can comfortably absorb this high cost without impacting operations.
What documents do I need if I've just started my business post-divorce?
Since you won't have two years of tax returns, lenders will focus on more recent proof of income. The most common documents required are 3 to 6 months of business bank statements showing consistent deposits, signed contracts with clients, and a clear business registration. This demonstrates your current earning power, which is what they care about most.
Will my ex-spouse's debt affect my ability to get a van loan?
Once a divorce is finalized and assets/debts are legally separated, your ex-spouse's personal debt should not impact your application. However, any joint debt (like a co-signed line of credit) that wasn't closed or refinanced will still appear on your credit report and be considered part of your debt load until it is resolved. It's crucial to ensure all joint accounts are addressed in the separation agreement.
