Business Car Loan Requirements and Documents

Business Car Loan Requirements and Documents

If you’re considering a business car loan, it’s really important to ensure you fulfil all of the requirements of the loan and have the correct documentation in place.

Getting organised can help to speed up the loan process, make it more efficient, and ensure that you and your employees are on the road faster.

What is a business car loan?

This is a type of commercial finance, which is designed specifically for the needs of commercial enterprises and their employees.

Business car loans are used by both small and larger scale businesses and are available for a variety of vehicles including:

• Trucks
• Equipment
• Employee cars
• Company Fleets

Before you apply for a business car loan

It’s worth doing your research – or asking for expert advice when choosing your business car loan. We can help you to gain a clear idea of which business car loan is right for you, including:

• Chattel mortgages
• Novated leasing
• Finance leasing
• Hire purchase
• Line of credit

Business car loan requirements

Identification

As with any standard car loan, you’ll need to provide identification. This should include your driving licence alongside any other relevant business car loan paperwork.

Budgeting

The biggest requirement of any loan is that you can pay it back. You will be required to prove that you and your business can honour the terms of the loan and to pay monthly repayments on time and in full.

Business car loan paperwork

It’s much easier to fulfil business loan requirements if you have been operating as a business for a number of years. Although business car loans are not impossible for start up companies, it may be a more lengthy process as you’ll have fewer financial records and could be higher risk to the lender.

The business car loan paperwork you’ll need to provide includes at least two years of tax returns and cash flow statements. Lenders may also require information concerning your business plan or expected future business.

Ownership

To be approved with a business car loan, you will need to show your lender proof of your ownership in the business. Most lenders will require paperwork to show that you own at least 20 per cent of the business.

Personal finances

Many business car loans will require you to personally guarantee the loan. You may be required to provide information about your personal finances including monthly salary, previous bank statements and your full credit history. You may also be asked for detailed information about your superannuation funds.

Insurance

Lenders offering a business car loan will want to know that you have the appropriate insurance already in place. This is something that you need to sort in advance, and failure to do so can slow down the process unnecessarily.

How about business car loan requirements for start ups?

It’s inevitable that you’ll have a little more business car loan paperwork to go over if you’re applying for a business car loan as a start up. Speak to us today if you want someone to talk you through what you may need. Generally, the business car loan paperwork you will need includes:

• Cash flow projections
• Business plans
• Lease agreements

Ready to go?

It’s worth getting your business car loan application right the first time. You don’t want to have anything rejected by your lender and having incorrect or insufficient documents can cause substantial delays.

If you’re unsure about whether you’ve got everything you need, speak to us for advice. We have decades of experience helping people get business car loans, and we want to help you and your employees get on the road fast. Find out how we can help you with your business car loan.