Business Auto Loans Overview
The business auto loans are normally taken to purchase automobiles for a commercial purpose. The business auto loans may be taken by individuals or owners of business entities. The business auto loans are pretty easy to procure.
In case of the business auto loans, the loan amount is directly paid by the lender to the seller of the particular automobile. That automobile is used as a collateral against the loan amount.
Business Auto Loan Amounts
The loan amounts of the business auto loans vary a lot. There are certain conditions, that determine the loan amount to be provided. Some of them may be mentioned as below:
Size of Business
Age of the Vehicle
Type of Business
Business Auto Loan Term Periods
The term period of a business auto loan depends on different factors. However certain common conditions may be enumerated as below :
Amount of Down Payment
Age of Vehicle
Business Auto Loan Interest Rates
The business auto loans are available as both fixed rate loans and variable rate loans. The interest rates of the business auto loans is determined by a variety of factors. Some of the factors could be mentioned as below:
Term Period of the Loan
Age of Vehicle
Business Auto Loan Criteria
The providers of business auto loans normally provide the loans after the borrowers meet some criteria. They may be mentioned as below:
Business and personal financial information are required for credit requests greater than a certain amount, that is fixed by the lender
Business must be profitable
Acceptable credit histories
Personal guarantees of all principals with some ownership in the business
Business Auto Loan Advance and Fees
The borrowers of business auto loans pay some advance before taking the loan. The terms and conditions of advance are separate for new and used automobiles. The providers of these loans also charge some money as loan fees.
Certain companies, dealing in business auto loans collect their fees at one go. Some companies may also charge late fines.
Last Updated on : 29th July 2013