Business Auto Loans: FAQs
If you’re looking for a new vehicle for your business, you have unique financing options available to you. Here’s what you’ll want to know about how a Business Auto Loan works:
What is a Business Auto Loan?
It’s a loan for a vehicle that you purchase as a business expense — which means you’ll finance it through your business rather than being personally liable for the cost of it.
What qualifies the vehicle to be purchased through my business?
It must be a vehicle used primarily for business purposes. Whether you need a simple sedan for getting around, or a commercial delivery vehicle to get your products into the hands of your customers, a Business Auto Loan can help keep your company moving ahead.
What are the key advantages of a Business Auto Loan?
- This type of loan tends to have a lower interest rate as compared to other business loans, because the vehicle itself acts as collateral for the loan.
- Loan terms are somewhat flexible, depending on the type, price, and age of the vehicle — as well as the credit history of your business.
- Your personal credit history will not necessarily affect your ability to obtain a Business Auto Loan. You may end up with a higher interest rate in some cases, but the loan is primarily based on the performance of your company.
- Depending on your line of work, having a good vehicle among your assets may help you grow your business. For instance, if it allows you to provide better, more consistent service to your customers.
How are monthly payments made?
Payments, of course, will be made directly by your business through recurring payments.
How can I inquire about a Business Auto Loan?
Contact Horizon Bank today to learn how we can help your business get the right vehicle for your needs.