How to Get a Business Car Loan

by Business Editor; Updated September 26, 2017
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How to Get a Business Car Loan. Business car loans provide financing for businesses to purchase new vehicles. To qualify for a business car loan you must operate a business and the vehicle must be purchased, titled and insured under the company name.

Step 1

Check your business credit report. You can get a copy of your business credit report by contacting the three major credit reporting agencies directly. These are Equifax, Experian and TransUnion. If your business is relatively new and has not established much of a credit history you will need to rely on your personal credit report to get loan approval.

Step 2

Contact your local bank and any other lending institutions your business has done business with in the past. Tell them you are looking to secure a business car loan and ask them to give you a rate quote.

Step 3

Search the Internet for financing companies that offer business car loans. Get rate quotes from several different companies before choosing which one is best for you.

Step 4

Compare not only the interest rates being offered but any fees that will be charged by the lender. Be careful of lenders that offer low rates but over charge on processing fees.

Step 5

Decide if you prefer a fixed or adjustable rate loan. Most car loans carry terms of two to six years. If interest rates are high when you secure the loan, chances are good they will come down during the term of the loan so you would be better off with an adjustable rate loan. If current interest rates are low, a fixed rate loan would be your best option.