How to Research and Apply for Business Auto Loans

January 27, 2012

If you need to learn how to get a business car loan. below are some steps to take. A business car loan can be an excellent way to secure a nice tax deduction, as well as help your business' credit score.

You need to know what both your business and personal credit is before you go to your loan officer. Call around for the best rates, and make sure your business credit meets their minimum requirements. Too many inquiries to your credit will lower your credit score (as well as your business'). Try to use the same bank or lending party you used to secure the business loan, as you will get a much better rate.

Guaranty

If your business credit score is not great or the company is new, you may need to sign a personal guarantee for the loan. If this happens, you need a copy of your personal credit to make sure it is good. Most lenders require that the owner of a business has good credit before granting the loan. Get a good look at your personal score when you look at the business' score. Sitting in front of the loan officer is no time to find out you have a bad score. If the bank extends a car loan to a business or corporation, and that business subsequently closes or goes out of business--the bank has no recourse, except the possible repossession of the vehicle. There is no one to sue or send a collection agency after. That can make them reluctant to offer a loan.

Tips for Business Car Loans

Your Banking Advisor May Help