Everything You Need to Know about Buying a Car under a Business Name

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car - image credit - smallbiztrends.com

In business, people and companies are not considered the same entities and do not have to be connected at all. For example, today you can get a car loan without ever telling your social security number. This means you can buy a car under a business name according to the credibility of your company and not your creditworthiness as a person. Here are a couple of things you should know in case you decide to do this. (people from countries like India, need not to worry about social security number). So let’s drive through and try to evaluate various facts those should be helpful and easy to understand.

Your Company Will Need Strong Credit Rating

If you want to be able to get a car loan, you will have to work on the credit rating of your company. Business lenders are always more keen on lending money to the companies that pay all of their debts on time. They also prefer to take a look at financial records of your company in order to make sure they can do business with you. This way, lenders will have an opportunity to evaluate the risk. They will also decide whether giving you a car loan is a good move.

You Will Need a Loan Proposal

Another thing you are going to need is a loan proposal. That is where you are going to explain what you need a vehicle for and how you are going to use it. A loan proposal is also used to specify the amount of money you need and how you intend to pay it back. While preparing a loan proposal, you should also try to mention some of your marketing strategies and past performance. By assuring the lenders that you have understanding of the market you will also increase the chances of getting a loan.

You Will Get the Response from a Couple of Lenders

If everything goes well, you are going to get the response from a couple of lenders who are interested in doing business with you. It is important to take a close look at the rates you are offered. This is necessary if you want to narrow down your list accordingly. You should also do a check on all the interested lenders and try to choose the most viable one. Banks and large dealerships are always a good choice but it is necessary to check all of their requirements before any deal is made.

Choosing a Car is Not Easy

Once you find the lenders you are going to do business with, you should start searching for the car you are going to buy. There are so many cars on the market today and choosing one is much more difficult than it seems. Turning to large car dealership is a great option since they do a lot of business with other companies. It is always a good idea to check out car auctions and see if you can get a bargain. If you decide to buy a car you spot on an auction. You can also get help from professionals specialized in car auctions.

There Will Be More Paperwork

If the lender approves your loan there will be nothing left to do but finalize the deal. There will be a lot of paperwork you will have to sign before you get the loan. You can than go through with the auction and get the car you have set your sights on. Once you get the car, you will have to register it to your business. It will help you save quite a lot when it comes to your business taxes.

It is important to assure the lenders that your rating and business performance are strong if you want to get the best possible deal. You will also have to find the car that will fit your business properly. However it is convenient to contact any certified CA around your area for accurate legal guidance.

Diana Smith

Guest Blogger at StartMyOwnBiz
Diana Smith is a full time mom of two beautiful girls interested in topics related to home improvement, DIY and interior design.
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