Are you seeking the perfect business auto loan? Our vehicle financing can help you to reach the funds you need to grow your business.

Lenders like us take a straightforward approach to lending. We keep our business loan requirements lenient while matching the best financial product to your specific business needs.

Depending on the loan type, you can get funding in amounts from $5,000 to $400,000.

What Is A Business Auto Loan?

They are affordable financial products that allow business owners to buy business vehicles (from cars to trucks).

Some lenders use the vehicle itself as collateral, which might result in lower rates, but the risk of losing the vehicle if they default on the payment.

At Camino Financial, we don’t want you to put your vehicle at risk, that’s why we don’t ask for any type of collateral.

Loan terms, rates, and requirements vary per lender. One lender may finance 100% of the vehicle’s retail value while someone else requires a specific down payment based on the business’s credit and financial histories.

The borrower makes monthly payments that include the principal, interest, and fees. In most situations, borrowers may have up to 60 months to repay the loan.

How Small Business Auto Loans Work

Once a business owner sets a budget, reviews their personal and business credit, and chooses the type of vehicle they want, they compare lender requirements. Lenders may require the vehicle to have a minimum value, age, weight, and mileage.

To increase your chance of being approved for a commercial vehicle loan, make sure that you meet the requirements set forth by your preferred lender.

Business auto loan proceeds are restricted to purchasing a vehicle or refinancing one for work-related activities such as transporting equipment, visiting clients, using the vehicle to complete a specific task, and other uses.

How Do I Know If A Business Auto Loan Is For Me?

Many businesses can use auto loans to fund their specific needs. Here are some examples:

Business Owners Pickup trucks, cars, vans, and other vehicles can all be used for commercial purposes.	Personal Drivers Caterers, florists, and bakeries can purchase a vehicle to make deliveries.
Startup Transport Business With a truck or auto, you can transport people or goods.	Trucking Companies You could invest in a heavy truck to pull a flatbed, or a refrigerated container to transfer food products.
Owner-Operators Rather than stay an employee, you can purchase your own rig and become your own boss.	Tow Truck Services Many tow truck owners get paid by insurance companies to provide this service, but they need the correct vehicles. A loan can give you the capital needed to buy them.
Food Truck Companies A well-planned food truck is the mainstay of a mobile food business.	Car Rental Companies To meet public demand, car rental businesses need small and larger vehicles with a variety of features to suit preferences.
Moving Companies You may need several trucks to accommodate small or large moves and get more clients.	Taxicab Companies You can start your own taxi company by buying a car or investing in a larger fleet to expand your operations.
Limousine Operators You may want to purchase a newer stretch limo to accommodate weddings, parties, and other social event participants.

Our Business Car Loan Requirements

Camino Financial is a suitable financing option for numerous types of businesses because our business loan requirements are less strict than traditional business auto loan providers.

To qualify for small business loans through Camino Financial, your business should be active and registered for at least nine months and generate sales of $30,000 annually or $2,500 a month.

We offer different business vehicle loans amounts in different sized that amounts up to $400,000. We can provide funding for one vehicle or a fleet of autos and work with clients to find the right loan for their business needs.

Learn more about our startup loans

Learn more about our microloans

Learn more about our small business loans

How Much Do You Need? Use Our Commercial Auto Loan Calculator

If you don’t know how much your business can afford, you are welcome to use our loan calculator.

Enter how much you want to borrow, and your preferred terms to get the approximate APR for your loan. Keep imputing data to come up with a payment amount that your business can repay comfortably.

Term Loan Calculator

Loan Amount

Payment TermPlease select24 Months30 Months36 Months48 Months60 Months

Monthly Interest RatePlease select1%1.25%1.5%1.75%2%2.25%2.5%

Best Uses For Business Auto Financing As your company grows, so do your needs. When you get business vehicle financing, you have the capital to make different investments.
Improve Your Current Company Car A pickup truck may have sufficient space to pick up supplies or make deliveries until your business expands and you need more space. Then you’ll need a larger vehicle.	Purchase A Company Car A company car is a business asset and you can deduct the depreciation, interest paid, insurance, and auto repair and maintenance costs as business expenses. That’s why it’s a great idea to buy one.
Buy A Fleet Of Vehicles As your business grows, you may need more vehicles with special features to conduct your operations. Buying a new fleet of vehicles for a small business with a loan is the ideal solution to support your business in its growth.	Refinance An Existing Vehicle Auto loans for business owners are an economical way to reduce your current payment on a vehicle you currently own. It also allows you to increase your business’s cash flow.
Lease A Business Car Depending on the commercial car distributor, repairs are covered for leased vehicles, so you don’t have repair and maintenance bills. For the most part, auto lease payments are normally lower than buying a vehicle, and the payments are a business expense.	Buy A Commercial Truck These trucks are convenient for loading, unloading, and picking up merchandise to save you time and money. Because they’re bigger, you can haul more and take the same tax deductions you do for a smaller truck.

How to Apply for a Commercial Car Loan

		1. Fill Out And Submit The Application Our 10-minute online loan application is simple and requires basic personal and business information. Plus, it doesn’t affect your credit score.
2. Wait To Hear From Us Just send us requested documents such as business financial statements. We have the best business auto loans due to our safe and secure system that allows you to keep your data private	3. Accept The Final Loan Terms Once we approve your business auto loan application, we send an electronic copy of the loan agreement for you to review and return.	4. Receive The Loan Proceeds On average, we deposit money into your business bank account within 2 business days.

*The process may differ slightly based on which loan you qualify for.

Benefits Of Getting An Auto Loan For Business

• Tax deductions. Business owners can reduce their tax liability by taking allowable business-related auto tax deductions.
• Business growth. Vehicles can be used for travel, selling/delivering your products and services, and for numerous other uses.

Commercial Auto Loans Vs. Business Auto Leasing

When you purchase a vehicle and make payments, it’s yours until you sell or trade it. With a lease you still make payments, but you don’t own the car.

Commercial auto loans are usually better than getting a car lease because you can drive as many miles as you want. With leasing, most lenders restrict the borrower as to how many miles they can drive.

They pay from $.15 to $.30 for each mile that exceeds the maximum allowable miles.

With an auto loan, you can make improvements but with a lease, a borrower pays fees and faces termination of the agreement if they change the car’s appearance. Plus, business loan interest rates are very competitive and can end up being cheaper than a lease.

Resources

In addition to this article, Camino Financial offers a library of information relating to business finances. Feel free to review this content at your leisure to learn more:

Interest Rate Hike 2022: The New Average Business Loan Rates

How to Find Angel Investors: Learn From the Experts

The Best Trucking Business Loans 

How to Get Financing for a Business: Best Ways in 2022

*Terms and requirements subject to change without notice.