Question on loans, titles, and lein holder..

Discussion in 'Business Operations' started by mrusk, Dec 15, 2004.

  1. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    Alright. I am in the Process of ordering a Haulmark enclosed trailer. I am going to finanace through them because they have a 0 interest deal going on. I want the trailer in my busiesses name, however they can only finace it in my personal name. (They use Funnacing). The sales man told me that if the Loan amount is less then 5000 he can put what ever name on the title i want, (personal or business) because for loans under 5000 the lein holder is not listed on the title.

    Does this all sound accurate? I do not want to order the trailer and find that i have to register it in my own name. I just do not want to run into any liablity issues in the future if their is ever an accident. I have the cash to buy the trailer outrite, but if i can use the banks money for a year why not?

    Matt
     
  2. muddstopper

    muddstopper LawnSite Silver Member
    Posts: 2,342

    I dont understand them not financing in your business name unless two things. One your business doesnt have a credit history or, two your business isnt registered as a real business and is only a business in name only. I supect what they are really wanting is your name on the loan as a co-signer in case of default on the loan. Nothing wrong with that, you are going to have to be responsible for payment on the loan either way As you would be the one signing the papers even if they do the loan in the business name. And in the end, if there is an accident you will probably be found finanacally responsible anyways.

    Careful using the banks money for a year. At the end of that year if the loan isnt paid off you can get hit with some pretty hard finance charges. Read the fine print on these kind of deals
     

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