Buying a Car Under a Business Name
When it comes to business, people and companies are not the same entities and they do not have to be connected. You can get a car loan, without ever telling your social security number. There are commercial vehicle loans which can be given according to the credibility of a business entity and have nothing to do with the creditworthiness of a person. You can do this once your company gets established which can take around 2 years. In case you decided to buy a car under a business name make sure you take a look at the following guide.
Build a Strong Credit Rating
One of the things you will have to do if you want to buy a car under the business name, you will have to build some good credit rating for your company. Business lenders always prefer to do business with companies who always pay all of their bills on time. Also, the lender will want to see the financial records of your company before they make a deal with you. Lenders to this in order to evaluate the risk and to make sure that the deal will bring them profit.
Prepare a Loan Proposal
Another thing you will have to do is give a loan proposal. The loan proposal should explain what do you need a vehicle for, how are you going to use it in the business and what exactly your business does. A loan proposal should also specify how much money you need and how you intend to pay it back. It is also a good idea to mention some of your marketing strategies and past performance. A proposal like this helps business lenders see that you do have understanding of the market and that you possess certain management skills necessary for getting a loan.
Find the Right Lender
Once you get some responses from the lenders it is the time to choose a lender that will be the best for your business. You should narrow down the list of lenders according to the rates they offer you as well as any other terms of the loan they might have. It is also important to choose a viable lender, since it is the lender will have to approve your loan. Banks, online lenders and some large dealerships are always a good choice but make sure you go through all their requirements before you opt for one of them.
Find the Car You Want to Buy
Once you do all of this, you can take some time to check out the cars which are on the market and find the right one for you. It is always a good idea to go with some strong car dealerships, since they usually have a lot of experience in selling cars to businesses and they might be able to help you. One of the best ways to find the car you need is to look at auctions. Professionals specialized in car auctions will always be ready to help you during a process like this.
Finalize the Deal
Now that you have decided on a lender and a car you want, there is nothing left to do but finalize the loan. Of course, this depends on whether the lender actually approved your loan. If the lender approved it, it is the time to sing some paperwork and go through with the auction. You can then buy the car you have set your sights on register it to your business. Make sure you do this since it can help you quite a lot when you have to do taxes.
If you make sure your credit rating and business performance are strong you are guaranteed to get a loan and be able to get a car for your business. It is also important to choose the right car which will suit your business properly.