Good Reasons To Get A Commercial Vehicle Loan
| Good Reasons To Get A Commercial Vehicle Loan |
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Many businesses that routinely use vehicles to move personnel or inventory from one place to another will be interested in obtaining a commercial vehicle loan to acquire those vehicles. Obtaining a commercial vehicle loan can be beneficial for a number of different reasons and can help you get the vehicles that you need quickly so that your business will not be interrupted. A commercial vehicle loan can be used to purchase virtually any type of vehicle as long as the vehicle will be owned by the company and used for business purposes. One of the biggest benefits to obtaining a company vehicle with a commercial loan is that a personal loan will not have to be used in the transaction. Purchasing a vehicle with a commercial loan means that the loan will not be reflected in the business owner's personal accounts or their credit score. Having a large purchase placed on your personal credit can mean being denied for other credit products that you may need to care for your family and can cause a rise in the personal interest rate charged for credit cards and other personal loans as the credit agencies try to determine whether you are extending yourself by acquiring so much personal debt. Another reason why a commercial vehicle loan may be the best option for obtaining company vehicles is that commercial loans can often have a much higher amount than personal loans. If the business is proven and profitable, the lending companies will determine that the business is healthy and will be willing to extend larger loans to assist the company in expanding so that the lending company can be sure of receiving all of their money back with interest added. By obtaining a commercial vehicle loan for the purchase of company vehicles, you may be able to get multiple vehicles at once instead of having to wait to purchase each one. Commercial vehicle loans are easy to obtain if the business owner knows where to go to obtain them. If they already have a relationship with a bank due to start up or business loans, they may want to inquire about the different types of commercial vehicle loans that the bank may have available. If the business owner has had a good relationship with the bank and has faithfully paid any other loans that they have, then the bank may be willing to extend a fairly large amount of capital to the business owner in the form of a commercial vehicle loan. |
Testimonials
<<Pause>>- Dr. P. Harps, Business Buyer, Chiropractic Practice
"Great job! My deal/loan was being botched by another lender I had selected who didn't really care and was going to fall through because of their unprofessionalism.
. . . Dr. P. Harps, Business Buyer, Chiropractic Practice - D. Wilson, Business Buyer
"TheCommercialloan place recently helped me secure a $1.2 million SBA loan for the purchase of this company. Without a doubt, they were instrumental in my successfully completing this transaction. You simplified and significantly reduced the time to complete the loan process. Without their constant assistance, I am certain I would still be stuck in the quagmire of the SBA loan process. They were professional, always available, and they always provided me with excellent and valuable advise and guidance. My contacing The Commercial loan place was the smartest thing I did when I decided to acquire this company. I would strongly recommend that they be the first call one makes when contemplating the purchase of a company."
. . . D. Wilson, Business Buyer - Bob Jones, Business Buyer
"I wanted to write a quick note and let you know how much I appreciate all your help in finding a lender for my business purchase. After being turned down by my first lender you were extremely helpful in coaching me to answer the questions appropriately. I knew that I had a good business opportunity, but I didn’t know how to present it properly and honestly don’t believe I would have found a lender without you. Thanks again for everything and most importantly getting me the loan for the business I purchased."
. . . Bob Jones, Business Buyer - Michael A, Now Restaurant Owner
"I want you to know how much I appreciate everything! You teamed me up with a niche lender that was willing to loan me the money I needed to buy my restaurant… I had tried everything - banks, C-loans, and many other lending services and NONE of them got me anything except closer to giving up. Because of the complexity of the deal it made everything that much more difficult, but you were there every step of the way and made getting the money that much easier. You didn’t waste my time, responded to my emails quickly, and worked closely with the lending institution until the deal was finalized - this deal would not have been completed without your services!"
. . . Michael A, Now Restaurant Owner - Sam Mitchel
"We just closed on our new business. Thanks for all your help and guidance throughout the loan process. Our first attempt at getting financing through a major lendor without your help was a disaster. We were denied funding and were beginning to think that our dream would not become reality. After coaching us on the application process, you connected us with the right lender which proved to be the key to successfully obtaining the money we needed. Thanks a million!"
. . . Sam Mitchel
Commercial Mortgage Calculator
Featured Article
| An Unsecured Commercial Loan Versus A Secured Commercial Loan |
| There are two types of commercial loans that you can get as a business. The first is a secured commercial loan, and the second is an unsecured commercial loan. A secured commercial loan is a loan that you get with collateral, and therefore is a much easier loan to get as a result. If you have less than excellent credit, you can put your business equipment, mortgage and other items up for collateral and the bank or lender will be more apt to provide you with funding. The reason for this is that they know they can get back their money with the collateral by selling it, so the risk is much lower. An unsecured commercial loan is one that is not backed by collateral. It is much harder to get and it is based only on the credit rating of yourself and your company. As a result, you are in danger of higher interest rates if you go for an unsecured commercial loan with credit that is not perfect. In contrast to the higher risk that is put on by the lender, the borrower has lower risk associated with a unsecured commercial loan because if they do not pay back the loan, the only damage is to their credit rating, and even that can be repaired with time. An excellent way to illustrate the difference between a commercial secured loan and an unsecured commercial loan is with an example. If you have a friend, and you borrow money from them and they ask for collateral of your television, then you know that if you don’t pay them back, you lose your television. Your friend has the assurance that even if you don’t pay back the loan, they still get a new television. However, if you borrow from a friend and they don’t ask for collateral, then when you don’t pay back the loan you are out no money (but may have lost a friend). Typically, an unsecured commercial loan will leave the business responsible for repaying the loan, but there will be a personal guarantee from the owner of the business that there will be a repayment of the loan per the commercial loan terms. An unsecured commercial business loan is better for a business if they have good credit, but bad for the lender if the business does not pay back the loan. Unless you have perfect credit, you should not try and get an unsecured commercial loan because the interest rates may cause you to default on it down the road. |
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