Most businesses require some transportation. Even if you work from home, you still might find a way to write off gas as a “business expense” on your taxes. A few options are available for those who need help financing a vehicle for commercial purposes. What are some ways to get small business vehicle loans?
Credit unions and banks are usually the starting point. However, other finance companies might offer funding options for small businesses that need things like cars, trucks, or vans. For example, the Small Business Administration works with many different lenders to help small companies get financing to help their organizations grow.
However, you must be able to prove to these lenders that your business can afford the payments. The terms vary among all the different lenders. Still, the one underlying standard is that applicants must produce personal and business-related documents. Whatever the reason you need the small business vehicle loans, you’ll have to be able to prove your ability to make payments on time.
For business-related documents, it’s typically required that owners can only finance a vehicle if their firm has been around for at least two years. A positive cash flow is also essential. Like any other type of business loan, the application process will involve having a solid business plan that outlines the purpose for the financing, what you will use the money for, and how the vehicle itself will be used for business purposes.
It’s also a must that you provide documentation that establishes your ownership stake in the company. For example, suppose it is a corporation. You might have to give the lender documentation that lists you as having a certain percentage of ownership stake. However, every state has its laws, so familiarize yourself with your state’s rules before applying for small business vehicle loans.
Small Business Vehicle Loans With a Sole Proprietorship
In some states, you can establish a sole proprietorship easily without having to register with the state – although you’ll still be expected to provide potential lenders with personal information about you and your credit history.
For startups, options may include using your vehicle (although there may be additional auto insurance requirements), obtaining funding through third-party options, or simply applying for a personal loan if your credit score is good enough.
SuperMoney is a great place to find small business vehicle loans and any other type of funding your company may need. Find out what your options are and compare the quotes. Everything is personalized in real-time. Plus, you’ll have tools and resources at your disposal to help you learn about financing and interest rates.