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Buying a company truck......

Discussion in 'Business Operations' started by sgl41377, May 5, 2007.

  1. sgl41377

    sgl41377 LawnSite Member
    Posts: 191

    What is the best way to buy a company truck? I am an new LLC that has been in business for 4 years.
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    What I do is pay for the truck with company funds.

    If your company is short on funds, consider loaning some of your personal money to the company...
    As a note of caution this usually only works for starters, as a one time deal type of thing.
  3. sgl41377

    sgl41377 LawnSite Member
    Posts: 191

    I need to get a loan for about $10,000. Can I get a loan strictly under an LLC? Are car dealers able to do business loans like they do personal loans?
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Read the long thread in this section called "building business credit can be easy". Its simple to get what you are looking for if you follow the easy steps in that thread.
  5. jcthorne

    jcthorne LawnSite Member
    Posts: 208

    As long as you have good credit it shouldn't be that hard. Put the loan in the LLC. and tell the banker you would like to personally guarantee the loan. This will not affect you personal credit score and will give you a foundation to build on.
  6. sgl41377

    sgl41377 LawnSite Member
    Posts: 191

    Thank you for the advice. Currently I had my bank approve me for a $15000.00 credit limit on a credit card. It is in my LLC's name... I guess I can ask for some checks for the purchase of a truck....The interest rate is Prime + 4%..... is this a good rate?????
  7. grassmanak

    grassmanak LawnSite Senior Member
    Posts: 792

    no, you would be better off getting an auto loan
  8. jeremyt1998

    jeremyt1998 LawnSite Member
    Posts: 71

    Be careful with those company credit cards. They don't provide the protection like a personal card. If they get stolen they only pay for half and you pay for the other half. As far as the loan Prime +4% is really high. You should try the auto loan which is fixed and the bank CC is varible.

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