If you’re a small business owner, there’s a good chance that you’ll need a vehicle. If you’re like most people, you won’t have the money up front to pay for your car, which is why you would need an auto loan. Even if you do have the ability to pay in cash, it might still be worth getting an auto loan for your small business since it would allow you to manage your cash flow better.
What makes auto loans for small business owners different from consumer loans is that you can finance various types of vehicles. You may also qualify for larger loans. That means if you need a delivery truck to grow your business or you want to switch to a hybrid vehicle to save on gas, you can get the funds to do so.
Here are a few things to consider when deciding if an auto loan for your business makes sense.
Better cash flow management
When you run a business, sitting on a healthy sum of cash isn’t always ideal. Having enough money in the bank to pay your bills for a few months is smart. But, any excess additional funds are usually used to help manage monthly expenses or to grow your business.
Getting a quote for an auto loan can also help you determine if it’s the right time to scale up your business. For example, let’s say you know that getting a delivery truck could increase your sales, but you don’t have enough cash available at the moment.
By speaking to a lending expert, you’ll know how much you’ll be approved for and what your monthly loan costs will be. With that number in mind, you can calculate how long it would take for your additional business revenue to pay for the loan. If it’s favourable, then the loan would be worth it.
Auto loans vs. refinancing
Auto loans and refinancing are similar, so which one you choose depends on your situation. Auto loans typically cover the cost of purchasing a new or used vehicle. In contrast, refinancing is a new loan that may come with better interest rates and terms, which would replace your existing auto loan.
Refinancing is advantageous to business owners who want to lower their monthly costs or are looking for better terms. A new auto loan allows you to shop around for a vehicle that’s best suited for your business needs.
What vehicles types you can finance
Coast Capital Savings offers competitive rates that are flexible on both new and used vehicles. If you’re interested in a new loan or you want to refinance, we cover the following:
- Commercial vans and trucks
- Delivery vehicles (cargo and cube vans)
- Light and medium-duty trucks up to 1 ton
- Consumer automobiles
- Luxury and classic cars
- Hybrid and electric cars
- Small fleets
If you’re thinking about buying or leasing a vehicle for your business, be sure to shop around for the best rates. At Coast Capital Savings, our team can help you figure out a solution that makes sense for your business needs. Contact us today to request a free, no-obligation quote. Or e-mail us at email@example.com, and we’ll answer any questions that you may have.