7 Best Business Auto Loan Providers for 2023
这篇文章是一个更大的一部分series onBusiness Financing.
The best business auto loans should provide competitive rates and have the flexibility to finance different vehicles. There should also be reasonable funding restrictions for things like vehicle age and mileage. Depending on the lender you choose, qualification requirements can be easy to meet, although you’ll often need to have more than the minimum criteria to get the best rates.
Here are the seven best business auto loan lenders for 2023:
- Bank of America:Best overall for low rates
- Crest Capital:Best for simple funding requirements
- National Funding:Best for customized loan options
- Balboa Capital:Best for fast funding
- Truck Lenders USA:Best for expanding a fleet of vehicles
- SBG Funding:Best for borrowers with low credit scores
- PNC Bank:Best for established businesses
Best Business Auto Loans at a Glance
Provider |
Maximum Loan Amount |
Estimated Annual Percentage Rate (APR) |
Minimum Credit Score |
Minimum Time in Business |
Annual Business Revenue |
Maximum Loan Term |
---|---|---|---|---|---|---|
|
$100,000 |
5.79% |
680 |
2年 |
Varies |
72 months |
|
$500,000 |
6.5% |
650 |
2年 |
None |
72 months |
|
400美元,000 |
15% and up |
600 |
6 months |
$250,000 |
60 months |
|
$500,000 |
5% and up |
6201 |
2 months |
$100,000 |
60 months |
|
$150,000 |
6.9% |
680 |
None |
Varies |
60 months |
|
$5 million |
3.75%* |
500 |
6 months |
$120,000 |
10 years |
|
$250,000 |
7% and up |
680 |
3 years |
None |
72 months |
*Rate shown is an average fixed monthly percentage. APR can vary.
Bank of America: Best Overall for Low Rates
|
|
Rates & Terms
|
|
Estimated APR
|
5.79% |
Loan Amount
|
$10,000 and up |
Loan Term
|
48 to 72 months |
Repayment Schedule
|
Monthly |
Required Down Payment
|
None |
Time to Funding
|
1 to 3 days |
Qualifications
|
|
Minimum Credit Score
|
680 recommended |
Minimum Time in Business
|
2年recommended |
Annual Business Revenue
|
Varies |
Vehicle Restrictions
|
|
我们选择美国银行(Bank of America)作为整体provi最好der because of its combination of low rates and qualification requirements. Other providers that offer lower rates often look for credit scores and larger down payments that exceed what this provider requires.
Bank of America’s business auto loans can obtain cars, vans, and trucks. New and used vehicles are eligible for financing but must have a minimum value of $10,000, be no more than 5 years old, and have an odometer reading of lower than 75,000 miles.
APRs currently start as low as 5.79%, although the lender occasionally runs temporary promotions with a reduced rate. You can get a loan for as low as $10,000, and even if no maximum amount is specified, you may need to check with a loan specialist if you want more than $100,000 in financing.
Although rates can fluctuate on a daily to weekly basis, this provider offers a 30-day rate lock to give you more peace of mind when shopping for a vehicle. Rates are determined after you have received formal loan approval and are valid 30 days from the date of your original loan submission.
Discounted rates are also available to business owners with an existing relationship with the bank. Rate discounts of 0.25% to 0.50% can be applied and are determined based on a 3-month combined average daily balance of your Bank of America and Merrill deposit and investment accounts. You’ll need a qualifying balance of $20,000 to qualify for a 0.25% discount, $50,000 for a 0.35% discount, and $100,000 to get the full 0.50% discount.
Crest Capital: Best for Simple Funding Requirements
|
|
Rates & Terms
|
|
Estimated APR
|
6.5% and up |
Loan Amount
|
Up to $500,000 |
Loan Term
|
24 to 72 months |
Repayment Schedule
|
Monthly |
Required Down Payment
|
0% |
Time to Funding
|
As fast as 24 hours for loans less than $250,000 |
Qualifications
|
|
Minimum Credit Score
|
650 |
Minimum Time in Business
|
2年 |
Annual Business Revenue
|
None |
Vehicle Restrictions
|
No age or mileage restrictions |
Crest Capital is a good option if you’re looking to get funding with few restrictions on the vehicle being financed. It also has a streamlined application-only process with reduced documentation requirements for loan amounts less than $250,000. It’s possible to get approved without having to provide tax returns, bank statements, or other financial statements.
It allows you to get funding for a business vehicle with fewer restrictions than many other providers, and vehicles can be financed regardless of their age or odometer reading. Qualifying vehicles can include trucks, buses, vans, limos, and trailers. Crest Capital also allows financing for private party sales.
You can get a decision as fast as 4 hours, after which you will be provided with Crest Capital’s financing agreement to review and sign. If you need more than $250,000 in financing, be prepared to provide more documentation. This commonly includes your most recent two years of tax returns, profit and loss (P&L) statements, balance sheets, and business plan.
While Crest Capital does have specific requirements for things like credit score and time in business, it places a large emphasis on whether you have a history of paying your bills on time. If you are currently or recently delinquent on bills, you may not be approved even if you meet the minimum credit score requirement. Similarly, if your business credit history is short but payments have always been timely, you’ll still have a good chance of getting approved.
National Funding: Best for Customized Loan Options
|
|
Rates & Terms
|
|
Estimated APR
|
15% to 136% |
Loan Amount
|
|
Loan Term
|
Up to 60 months |
Repayment Schedule
|
Daily, weekly, and monthly |
Required Down Payment
|
0% |
Time to Funding
|
24 to 72 hours from application |
Qualifications
|
|
Minimum Credit Score
|
600 |
Minimum Time in Business
|
6 months |
Annual Business Revenue
|
$250,000 |
Vehicle Restrictions
|
Varies on a case-by-case basis |
National Funding consistently receives high ratings from its customers. It also reviews applications on a case-by-case basis and tailors its approach to each business it works with. For these reasons, it is a good provider to consider if you want customized loan options with excellent customer service.
Its equipment financing can be used to fund any equipment that will be used for business purposes—including commercial vehicles. Financing of up to $150,000 is available with loan terms of up to 60 months. Larger amounts up to $400,000 are also available for other types of loans such as working capital. Repayments can be made on a daily, weekly, or monthly basis.
While estimated APRs can start at around 15%, they can also go to around 136% depending on your business qualifications. At a minimum, you must have a credit score of 600, annual revenue of $250,000, and 6 months’ time in business. To get the best rates, businesses must exceed these minimum requirements.
Most of the companies that National Funding works with are those that are doing well from a financial standpoint and are looking for additional funding to expand operations. If your business can demonstrate strong cash flows, you should have an excellent chance of getting approved.
Balboa Capital: Best for Fast Funding
|
|
Rates & Terms
|
|
Estimated APR
|
5% to 20%+ |
Loan Amount
|
$3,000 to $500,000 |
Loan Term
|
12 to 60 months |
Repayment Schedule
|
Monthly |
Required Down Payment
|
None |
Time to Funding
|
As fast as the same day |
Qualifications
|
|
Minimum Credit Score
|
620 |
Minimum Time in Business
|
12 months |
Annual Business Revenue
|
$100,000 |
Vehicle Restrictions
|
Varies |
If you need funding quickly, few lenders can match the speed of Balboa Capital. In total, the application, approval, and funding steps can be completed potentially on the same day for qualified businesses.
Balboa Capital has an online application for its equipment financing product that can be completed in as soon as 2 minutes if you have the necessary information about your business and type of loan you need. Approvals can be issued within 1 hour during regular business hours. Depending on when you began the application and when you received an approval, same-day funding is also available.
As part of its ability to issue loans quickly, it has easy documentation requirements because of its application-only process for hard collateral loans up to $500,000. The minimum criteria to be eligible for financing include a credit score of 620, a minimum of 12 months’ time in business, and annual revenue of $100,000.
As with many other providers, exceeding those requirements can help you get approved quicker and at a lower rate. Rates start as low as 5%, although businesses that aren’t highly qualified should expect to get rates starting at 8% and above.
Truck Lenders USA: Best for Expanding a Fleet of Vehicles
|
|
Rates & Terms
|
|
Estimated APR
|
6.9% to 11.9% |
Loan Amount
|
$20,000 to $150,000 |
Loan Term
|
60 months |
Repayment Schedule
|
Monthly |
Required Down Payment
|
None |
Time to Funding
|
3 to 5 days from application |
Qualifications
|
|
Minimum Credit Score
|
680, but can vary |
Minimum Time in Business
|
None |
Annual Business Revenue
|
Varies |
Vehicle Restrictions
|
Varies |
Truck Lenders USA works mostly with business owners looking to expand an existing fleet of vehicles, so you’ll be in good hands if you have been consideringcommercial auto financing. It also offers competitive rates for well-qualified businesses.
Its rates start as low as 6.9%. There are no minimum requirements for down payment or time in business, although highly qualified businesses have a better chance of getting the lowest advertised rates and loan terms. For example, if you have excellent credit and a score above 715, you have a good chance of getting a low rate with no down payment requirement. On the other hand, a lower credit score may mean a higher rate along with requiring a longer time in business to qualify for a no down payment loan.
While most of the clients this provider works with are businesses looking to continue expanding, it can also work with startups. Applications are reviewed on a case-by-case basis, improving your chances of getting approved for some form of financing.
One downside with Truck Lenders USA is that a prepayment penalty applies during the first two years of a loan. So, you’ll want to consider that cost if you think you might want to pay off your loan quickly.
SBG Funding: Best for Borrowers With Low Credit Scores
|
|
Rates & Terms
|
|
Estimated APR
|
3.75% and up |
Loan Amount
|
高达500万美元 |
Loan Term
|
One to 10 years |
Repayment Schedule
|
Monthly |
Required Down Payment
|
None |
Time to Funding
|
48 to 72 hours from application |
Qualifications
|
|
Minimum Credit Score
|
500 |
Minimum Time in Business
|
6 months |
Annual Business Revenue
|
$120,000 |
Vehicle Restrictions
|
Varies |
SBG Funding has the lowest credit score requirement on our list. This makes it a good option if you need funding but have had difficulty getting approved with other lenders due to your credit.
This provider offers an equipment financing product that can be used for business-related equipment, including vehicles and the expansion of an existing fleet. To qualify for financing, you’ll need a credit score of at least 500 and $120,000 in annual business revenue. SBG Funding is also startup-friendly, requiring just 6 months’ time in business. With easier qualification requirements than many other lenders, SBG Funding has an approval rate of 85%.
Rates start as low as 3.75%, but borrowers should know that is an average fixed monthly amount rather than an APR. Depending on your business qualifications, rates can be higher than other providers on this list. If you have low credit scores, it’s important that you understand the costs of acquiring a loan and how much additional revenue you could earn by acquiring additional vehicles.
You can submit an application on SBG Funding’s website, a process that should take no more than 10 to 15 minutes. Required documents include four months of business bank statements, a voided check to verify your business bank account number, and a driver’s license or other government-issued photo identification for all business owners.
PNC Bank: Best for Established Businesses
|
|
Rates & Terms
|
|
Estimated APR
|
Varies, but typically 7% and up |
Loan Amount
|
$10,000 to $250,000 |
Loan Term
|
Up to 72 months |
Repayment Schedule
|
Monthly |
Required Down Payment
|
0% |
Time to Funding
|
3 to 7 days |
Qualifications
|
|
Minimum Credit Score
|
Varies, but 680 or higher is recommended |
Minimum Time in Business
|
3 years |
Annual Business Revenue
|
None |
Vehicle Restrictions
|
Undisclosed |
PNC Bank requires companies to have three years’ time in business to be eligible for financing. That’s the highest out of all the providers in this guide. If you can qualify, though, you have a better chance of getting higher loan amounts and lower rates compared to other lenders.
This provider offers business auto loans up to $250,000 with rates that start around 7% and up. While others such as Balboa Capital and Crest Capital advertise larger loans at lower rates, those loan terms typically require higher qualification requirements than what PNC Bank looks for.
If you want to lower your payment as much as possible, PNC Bank allows payments to be spread over a maximum of 72 months. Rates are also fixed, so your monthly payments will not change, which should make it easier for you to manage your business cash flow.
One of its drawbacks is that to apply, you must either contact PNC Bank over the phone or visit a branch. To streamline the application process, it’s a good idea to have your financial documents available, such as your most recent business tax returns, personal tax returns, P&L statements, and bank statements.
How We Chose the Best Business Auto Loans
When we chose the best business auto loan providers, we considered the following criteria:
- Interest rates and estimated APRs
- Credit score, time in business, and revenue requirements
- Loan amount, terms, and repayment options
- Application, approval, and funding speed
- Restrictions on vehicles eligible for financing
- Customer reviews and ratings
Alternatives To Business Auto Loans
Doing some preparation before you get a small business loan can save you time and increase your chances of getting approved. However, if you’re having trouble getting approved because your business doesn’t qualify or the vehicle condition doesn’t meet a lender’s requirements, here are some alternative financing options you can consider:
- Small business line of credit:This is a revolving line of credit that allows you to draw funds on an as-needed basis. It can be used to fund business expenses, including vehicles, without the typical auto loan requirements, such as vehicle age or odometer restrictions. You can get started with our roundup of thebest small business lines of credit.
- Personal loan for business purposes:If your business cannot qualify for a loan but you have good personal credit, this type of financing can be a good alternative to consider. We’ve selected thebest personal loans for business funding providersfor a variety of credit profiles.
- Rollover for business startups (ROBS):A ROBS isn’t a loan, so it doesn’t carry the typical financing requirements, such as credit score, revenue, or time in business. Rather, a ROBS is a way to get access to your retirement accounts tax- and penalty-free. We recommend contacting a company from our list of thebest ROBS providersto walk you through this process.
请参考我们的导游how to get a small business loanif you require assistance with the process.
Frequently Asked Questions (FAQs)
Is it hard to get a business auto loan?
No. Since most business auto loans require the vehicle to be used as collateral, rates, and qualification requirements tend to be easier to meet. This is especially true for new and lightly used vehicles.
Can I use other types of loans to get a business vehicle?
Yes. Examples of loans that can be used to finance a business vehicle includeequipment loans、业务信贷额度和小企业Administration (SBA) loans. The terms and conditions of a loan will specify what types of purchases are prohibited.
How long does it take to get a business auto loan?
It can take several days to a week to get most business auto loans. You can speed up the process by providing the lender with the required information on your business and the vehicle you’re purchasing. It can take lenders 24 to 48 hours to review your loan and another 24 to 48 hours to have it funded.
Bottom Line
If you need to get financing for a business vehicle, the providers in our guide can provide competitive rates and flexible qualification requirements. Some offer different types ofequipment financingthat can also be used for other purposes besides just funding a vehicle for your company. As with most loans, the lowest advertised rates require a business to be well-qualified. Since some providers also review loans on a case-by-case basis, you should shop rates with multiple lenders to ensure you get the best rate you can.