Today's Top TipOnline business plan scams are alive and doing very well. There's even a new wrinkle: the "crowd funding". Trust me, no one makes money but the promoters in this scheme.
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Almost any business can benefit from business auto loans.
If your business relies on its vehicles to maintain a solid customer base, you simply cannot afford to have old vehicles which are in constant need of repairs. A business auto loan can be the perfect way to help you maintain a viable fleet of cars to help your business continue to operate.
Loans for business vehicles are an extremely viable means of providing your business with good-working cars.
Most of these loans have fixed payment options, reasonable repayment terms, and are secured by the vehicles which means you seldom have to provide some other means of collateral.
Because so many businesses need to have reliable transportation methods there are hundreds of lending institutions that are more than willing to provide a business auto loan that is very competitive. Most of these loans have a fast turn-around time which means you could be approved for the loan within as little as 24 hours. They come with flexible terms which generally range from 24-60 months depending on the amount of the loan.
A vehicle loan for business is available with both fixed and adjustable interest rates which are usually determined by the amount of the loan and the age of the vehicle(s) being purchased. There are even interest-only balloon loans available for purchasing company cars. Most of these balloon loans are short-term, fixed-rate loans and have a lump sum payment due at the end of the term.
As with any loan there are some criteria for determining if you qualify for an auto loan for your business. Among the criteria considered are the profitability of the business, an acceptable credit history, and personal guarantees from anyone with 20% or more ownership in the business itself.
Many banks will look into how much equity the business already has prior to lending any money and will sometimes expect the borrower to contribute about 25% of the total funds required. In monetary terms it means that if you want to borrow $100,000 towards to the purchase of new vehicles you will be expected to contribute $25,000 yourself.
Some lending institutions may want a secondary source of collateral to help guarantee them a means of getting their money should you find yourself unable to maintain payments. However, this varies among lenders and with some research you can find monetary sources which do not have this requirement.
The Key to Success for Business Auto Loans: Take your business plan with you. A loan broker for a business auto loan won't take the time to read the whole business plan, but all the information he needs will be at his fingertips, and will make his job much easier. And he may even see something in that business plan that will enable him to negotiate a lower rate for your business.
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