Financing Your Next Business Move in New Brunswick, Post-Divorce
Navigating a divorce is tough, and rebuilding your financial life is a critical step. If your business in New Brunswick needs a commercial van to operate and grow, you might be worried about how your recent life changes will affect your financing options. This calculator is designed specifically for your situation: financing a commercial van in New Brunswick over an 84-month term, with the unique credit considerations that come after a divorce.
We understand that your credit score might have taken a hit. Lenders who specialize in these situations look beyond just the score; they see the income-generating potential of a commercial vehicle. Let's break down the numbers and show you a clear path forward.
How This Calculator Works for New Brunswickers
This tool is calibrated for the realities of financing in New Brunswick. Here's what it does:
- Calculates 15% HST: It automatically adds New Brunswick's 15% Harmonized Sales Tax (HST) to the vehicle price. This is crucial as you finance the total cost, including tax.
- Applies Your Down Payment/Trade-In: It subtracts any down payment or trade-in value from the total taxed price to determine the final loan amount.
- Estimates Monthly Payments: Based on your estimated interest rate and the 84-month term, it provides a clear monthly payment estimate to help you budget effectively.
The biggest surprise for many buyers is the tax. For example, a $40,000 van isn't $40,000. In New Brunswick, it's $40,000 + $6,000 (15% HST) = $46,000 that needs to be financed before any down payment.
Approval Odds: Financing a Work Van After a Divorce
A divorce can temporarily impact your credit score due to the division of assets, closing of joint accounts, or changes in income. However, financing a commercial vehicle is different from a personal car. Lenders see it as an investment in your business and earning potential.
- Good Credit (660+): Even after a divorce, if your score remains strong, you have excellent approval odds with competitive interest rates from A-level lenders.
- Fair Credit (600-659): You have very high approval odds. Lenders will want to see stable income from your business. Bank statements are often more important than your credit score. For many business owners, this is standard practice. To learn more, see our guide on how Self-Employed? Your Bank Statement is Our 'Income Proof'.
- Challenged Credit (Below 600): This is where we excel. Traditional banks may say no, but we work with lenders who understand that a past event doesn't define your future ability to pay. They finance the person and the business plan, not just the score. The key is demonstrating consistent business revenue. Don't let a past relationship dictate your future business success; as we often say, Your Ex is History. Your Car Loan Isn't. Zero Down, Bad Credit.
Example Commercial Van Loan Scenarios in New Brunswick (84-Month Term)
This table illustrates how the vehicle price, credit-based interest rate, and NB's 15% HST combine to create your monthly payment. We've assumed a $2,000 down payment for these examples.
| Vehicle Price | Price with 15% NB HST | Loan Amount (after $2k down) | Interest Rate | Estimated Monthly Payment |
|---|---|---|---|---|
| $30,000 | $34,500 | $32,500 | 7.99% (Good Credit) | $503 |
| $30,000 | $34,500 | $32,500 | 12.99% (Fair Credit) | $594 |
| $45,000 | $51,750 | $49,750 | 8.99% (Good Credit) | $789 |
| $45,000 | $51,750 | $49,750 | 15.99% (Challenged Credit) | $979 |
*Note: These are estimates. Your actual rate and payment will depend on the specific vehicle and your complete financial profile.
Getting your business the tools it needs to succeed is our priority. A challenging credit history from a major life event like a divorce or even bankruptcy is not a dead end. We believe in second chances and have options for nearly every situation. Our approach is simple: if you've been through a tough time, we see it as a reason to help, not a reason to deny. For more on this philosophy, read about how Alberta: They See Bankruptcy. We See Your Next Car. Drive Today.
Frequently Asked Questions
How does a divorce specifically affect my ability to get a commercial van loan in New Brunswick?
A divorce can lower your credit score if joint debts were missed or if your debt-to-income ratio changed. However, for a commercial loan, lenders in New Brunswick place a heavy emphasis on your business's revenue and stability. If you can show consistent income through bank statements or contracts, many lenders will look past a temporary credit dip caused by a divorce.
Is the 15% HST calculated on the full price of the van or after my down payment?
The 15% HST in New Brunswick is always calculated on the full, agreed-upon selling price of the vehicle *before* any down payment or trade-in value is applied. For example, on a $40,000 van, the tax is $6,000, making the total $46,000. Your down payment is then subtracted from that total amount.
Why choose an 84-month term for a commercial van? What are the pros and cons?
The primary benefit of an 84-month (7-year) term is a lower monthly payment, which improves your business's cash flow. This can be crucial when you're re-establishing your finances. The main con is that you'll pay more in total interest over the life of the loan. However, for an income-generating asset, keeping monthly overhead low is often the top priority.
What documents do I need to prove my income as a self-employed person in NB?
Lenders are flexible. Typically, they will ask for 3 to 6 months of business bank statements showing consistent deposits. Other useful documents can include filed tax returns (T1 Generals with a statement of business activities), contracts for upcoming work, or invoices. The goal is to paint a clear picture of your business's financial health.
Can I get a commercial van loan with zero down payment after a divorce?
Yes, it is possible. While a down payment always strengthens an application by reducing the lender's risk, many of our lending partners offer zero-down options, especially for strong business cases. If your credit is significantly challenged, a down payment of 10-20% can greatly increase your approval chances and secure a better interest rate.
