7 business car loan options

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If you are looking for a business car loan, you have many options. You can choose a traditional lender or explore other lenders. In this article, we’ll discuss 7 loan options to consider if you’re looking to buy utility vehicles or specialty vehicles.



What is a business auto loan?

Business car loans, like commercial truck loans, are small business loans that are typically used by businesses that need vehicles for business purposes, such as sales reps or delivery drivers.

However, small business car loans are generally more expensive than consumer loans. Indeed, a consumer car loan is less risky for the lender.

How does a business owner finance a car?

If you’re a business owner looking to finance a car, there are a few things you need to do to make sure you get the best deal possible.

  • Get Approved: First, you will need to get credit approval from a lender. This will help you determine how much money you can borrow.
  • Find a lender: You will need to find a commercial vehicle finance company that offers competitive rates. Shop around and compare offers from commercial auto lenders before choosing a lender.
  • Monthly Payments: Once you have found a lender, you will need to calculate your monthly payment. This will help you budget for your loan and ensure you can afford the payments.
  • Obtain a loan: Once you have found a lender, you will need to apply for a business car loan. Make sure you have all your financial documents in order, such as your tax returns and business financial statements.

How do business auto loans work?

This type of business loan is secured by the vehicle, which means that if you fail to repay the loan, the lender can repossess the vehicle. Commercial auto loans typically have lower interest rates than personal auto loans, and they may also come with additional perks, such as flexible repayment terms.

To qualify for a business car loan, you will generally need to have a good credit score and a solid financial history.

Best lenders for commercial auto loans

Let’s take a look at the following list of business auto loan providers and find the right one for your specific needs:

1. Bank of America

Bank of America offers auto loans to customers who want to buy or refinance cars. Interest rates start at 3.99% and small business loan amounts start at $10,000. Loans can be used to purchase or refinance cars, light trucks or vans. The repayment term is four to six years and the commercial vehicle age limit is up to 5 years with a mileage limit of up to 75,000 miles. There is no specific minimum credit score or minimum time in trade requirements.

2. Wells Fargo

Wells Fargo is a trusted lender with a variety of loan products available. Their starting APR is 6.25% and they don’t charge any creation or maintenance fees. There’s also no prepayment penalty or termination fee, and the only additional fee is a $150 documentation fee. Loan amounts range from $10,000 to $100,000 and repayment terms are up to 84 months.

3. A capital

If you need a business loan, Capital One is a great option. They offer loans starting at $10,000 with repayment terms of up to five years. To qualify, you must have or be willing to open a Capital One business checking account and your business must have been in operation for at least two years.

4. Capital of Balboa

If you’re a small business owner and need cash fast, Balboa Capital may be the lender for you. This alternative lender specializes in equipment financing and offers same-day financing for loans up to $500,000. You’ll need to be in business for at least a year and generate at least $100,000 in annual revenue to qualify, and your personal FICO score should be above 620.

5. Allied Bank

Ally Bank is a great option for financing your car rental. They offer flexible leases without personal guarantees and offer specific loans for heavy trucks and vehicle modifications. Also, they only offer financing in the name of the business, so you cannot be held responsible for non-payment of the loan.

6. Domestic Funding

Domestic funding is a great option for startups and businesses with bad credit. They offer to finance up to $150,000, and the eligibility criteria are less strict than with other lenders. You just need to be in business for six months and have a FICO score of 575.

7.Crest Capital

If you need a business loan fast, Crest Capital is one of the best options. They can fund loans up to $1 million and if you borrow $250,000 or less, you could have the money in your account within 4 hours. The loan terms are also very flexible, ranging from 24 to 72 months. However, a downside is that a personal guarantee is required for all loans.

Should you buy or lease a car for your business?

It depends. If you only need the car for a short period of time or plan to use it infrequently, a car lease may be the best option. Leasing can also be a good option for business owners who need a high-end or luxury vehicle that they otherwise couldn’t afford to buy outright. However, if you plan to put a lot of miles on the car or plan to keep it for several years, buying it may be the best choice.

Which bank is best for commercial auto loan financing?

Bank of America is a great choice overall, mainly because of its low annual interest rate and easy-to-satisfy commercial auto loan terms. Remember, though, that to get the best possible deal on a car loan, it’s important to compare offers from multiple lenders and choose the one that best suits your business needs.

Do business auto loans show up on a personal credit report?

No, business auto loans do not appear on your personal credit report and will not affect your personal credit score. However, if you are unable to repay the loan, the lender may repossess the vehicle and it will appear on your business credit report.

What commercial credit score do you need to buy a car?

When looking to finance a new car, the first thing most lenders will look at is your business credit score. This three-digit number is a key factor in determining whether or not you will be approved for a loan as well as the interest rate, and it can also affect the interest rate you are offered. You will generally need a commercial credit score of 660 or higher to buy a car.

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