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Many small businesses want quick access to vehicles like cars, trucks, or other commercial vehicles to grow their business further. At the same time, buying a new or used vehicle can be expensive, mainly when calculating the tax connotation. You want to get the best rates available on business finance for automotive sectors, which allows maximum savings your way.
Many UK lenders provide business finance to companies in the automotive industry. They can finance automotive businesses by getting a small amount or a complete financial solution your business needs for a vehicle. When buying a single or two business vehicles, many options exist, such as asset finance that also includes products like truck financing.
If your business relies entirely on vehicles, an automotive loan can be a reasonable way to buy your desired vehicle, like a car, van or truck. Besides, you can also refinance the existing vehicle, which can also save you money. More importantly, your vehicle will itself act as the loan collateral. Qualifying for this business loan is much easier than any other option. You may not need to bring a personal guarantee to secure the loan, but it depends upon the lender you choose.
Flexible automotive finance is available for the following types of vehicles and related assets:
Compare options at Thebusinessfunds to find the most suitable loan option with affordable interest rates. We are a specialist automotive business loan broker suggesting over 50 lenders providing such business finance. You can choose any of those lenders and get the benefits like:
A loan for an automotive business is a funding product you can obtain to purchase a vehicle for your company. It is also called a commercial auto loan or business auto loan. These loans usually finance cars, vans, and trucks. If you need a heavy-duty vehicle, opting for an equipment loan or a commercial truck loan will be better.
The functioning of an automotive business loan is relatively similar to a personal vehicle loan. Once applied and approved, you receive money to buy a commercial vehicle and repay the sum alongside interest rates over a settled term.
Here are some standard features of an automotive loan for business:
Availing of a business loan involves a proper process that every venture needs to pursue. Here, the first step is to make your business eligible by fulfilling the conditions to get funding for automotive businesses. Different lenders have different criteria, but generally, the following prerequisites are there to qualify your business. These are:
You must meet all these qualifying criteria and prepare to initiate the loan application procedure. Are you ready? Have you collected all the documents required before applying? If not, then collect these papers immediately:
You should have a reliable lender who can understand your financial compulsions. The lender should be able to offer you the desired loan amount and term as per your business needs. First, know the final price of the vehicle you want to buy, and then decide how much you need to get from the lender.
As your company belongs to the automotive industry, you will need a car, truck, Ute, or van for your commercial purposes only. The primary thing is getting the vehicle in your company’s name. Therefore, you can opt for secured business loans for automotive businesses to cover the actual vehicle cost. You can keep that vehicle as the loan collateral and get higher amount at lower interest rates.
There are a few lenders in our panel who can provide unsecured loans for business. These may not require your company’s asset to pledge but carry a higher interest rate on probably the lower loan amount. These work best when you need a quick cash injection or fill the funding gap during a more considerable expense.
There is no fixed interest rate to consider, as the varied lenders have their conditions. Some may charge fixed rates, while others keep variable interest costs. Simultaneously, depending on your requirements, you can get funding for a new or used business vehicle. Most automotive companies prefer fixed interest rates and regular monthly instalments. It gives them leverage to keep focusing on regular business activities. Analyse your business banking and its capacity.
You should be clear about how you will utilise the vehicle. For example, you have to travel extensively, as your company is part of the UK hospitality sector. It is always beneficial to find out a flexible automotive finance lender who will allow you to trade in the vehicle on lease and save on maintenance expenses.
Comparing different options at Thebusinessfunds can help you decide the right option that is beneficial for your business. We act as your trustworthy automotive business loan broker and finds deals which should have following benefits:
We have a comprehensive panel of lenders in the UK with features like responsible lending and supportive norms. They have experience helping automotive companies ensure stable cash flow and seek significant growth.
There may be different reasons to get commercial finance for automotive businesses. We help you to be familiar with diverse loan options, which are mentioned below:
You should have a stable and robust working capital, irrespective of the size of your automotive business. It strengthens your business returns to manage expenses related to bills, equipment, payrolls and rent. By getting a valuable deal on working capital loans, you can fill any funding gap and repay the borrowed amount within a shorter period.
Most automotive companies struggle with unpaid and unclear invoices. They need to chase the providers, which will take time. You may also get a sudden block to your cash flow and the chances of fulfilling the new projects. Finding a perfect deal on invoice finance can help ease the stress of unclear payments. Our lenders may finance your company up to 95% of your pending invoices.
A trade finance deal is always lucrative for the automotive industry, particularly the manufacturing sector. You can secure a reasonable amount against the orders that you have bought. It further brings the necessary funds to make the suppliers' payments, and your company can make the orders on time. We already have a list of trade finance providers who are flexible in funding for automotive businesses.
Contacting an automotive business loan broker will bring solutions quickly. You can easily choose the lender for your automotive finance and accomplish what you desire. Once you decide on your loan provider, you have to follow specific steps to embellish the loan procedure.
Step 01: Analyse your business needs and decide a loan amount
It is vital to analyse your business needs, such as which type of vehicle you should buy, whether it will be used or a new one, and how you will afford the loan repayment. You can also use the loan calculator to analyse the manageable payments properly. Some companies want more than one vehicle depending upon the working and their size. The prime examples are the transport and logistics businesses. Whatever your requirements, you should seek an affordable loan amount to repay.
Step 02: Know your credit file ready
The next step is to prepare your credit score file and be ready to share it with the lender. Some business finance providers ask for both business and personal credit scores. Doing this will allow the lender to decide the approval, interest rates, and duration of the loan. To check your credit score, you can approach any credit reference agency. If errors occur, hold the loan application and discuss with the credit bureau to fix the mistakes. Things will be comfortable with a good credit score. Otherwise, you must arrange a personal guarantee if your credit score is low.
Step 03: Decide the type of the vehicle
Your company is part of the automotive sector, and thus, you should be clear about the type of vehicle you need. You can choose between standard vehicles and specialised vehicles such as pick-up trucks. Evaluate your current business requirements and then decide the type of vehicle. This step also determines the type of business finance for the automotive sector. If you are buying a used vehicle, ensure it is not older than five years.
Step 04: Apply for an automotive loan
Once you have completed all the steps mentioned above, you are ready with your loan application. It would be better to opt for online loan applications as it will allow you to process things quickly and focus on regular business activities. Lenders require some documents from the applicants, mainly business information like tax returns, licenses, address proof, the total number of employees, and the type of business. Some need personal information such as bank statements, ownership, etc.
Step 05: Finalising the loan agreement
The lender analyses your loan application and details and then approves it if everything goes well. It will send a loan agreement, which you should review, along with the terms and conditions. Ask the lender to clarify anything if you have any doubts. Otherwise, sign the loan agreement and get the desired amount to your company's bank account. Be sincere from the first repayment till the end.