Originally Posted by ryan41
This is my second year in business. I am looking to purchase a used 2500 or 3500 truck for around $20k. I haven't decided to go with a regular box or a dump yet, but i know for sure its going to be a diesel! Anyway, i have a OK credit score but what i am concerned with is how much i show for profit. on paper i grossed 47K this year (we mainly just stick to maintenance). Almost triple what i did my first year. My accountant wants to make sure i write off everything i can. I understand writing off business expenses, but i would like to show a little more NET for the bank. He says what i NET is too low for a bank, so it wont matter. How big of a role does the NET income matter in determining if i can get a loan or not? This would be a loan in my name not the business name.
They'll likely look at a number of things, go talk to your bank or just call them up and find out what they want, make them earn their paycheck!
Also, don't have a heart attack when you see the terms of the loan they're going to give you on a used $20,000 diesel truck. For a diesel to be $20k it's likely got high-ish miles and has more than a few year on it. Banks are more likely to make a loan on a new truck that's twice the price than they are to make a loan on a 7 year old truck with 140,000 miles on it.