Have any of you used small business loans before? Looking at getting one to purchase a Mitsu Fuso FG dump for 14000. If you guys have any tips or what company to go with I would greatly apreciate it. Its hard getting credit at the age of 19 for a auto loan, so I figured I would try and put it in the business name as a business loan. Thanks guys... James JS LANDSCAPING
To be blunt, not a chance. You'll need to have good credit and a strong background with years of experience before you can get a business loan.
You can 1 of 2 things. A, go to your bank and check out a SBA loan. I can tell ya right now there is a ton of paperwork including a business plan they will want to review. B, see if you qualify for a revolving line of credit. It won't matter putting the loan in your business's name. The bank will still want your Social Security number for the application and credit check. Good luck...
Thanks for the help. Ill take a ride over to the bank tomorow and see what I can do. Even getting approved for a credit card has been a hassel. Finnaly got one about 2 months ago and have made every payment ontime so far. Guess I just have to keep savin up and pray for some more snow! lol. Have a good day.... James JS LANDSCAPING
Would another option be to get a personal loan and lease it to you business? I am getting ready to build a shop and do just that.
Talk to your loan officer... 9 times out of 10 you can get a better interest rate be putting it as a personal loan, reguardless if it's for your business or not. They set intrest rates by how long the loan is for and wether or not the vehicle will have a respectable (within NADA) resale value at the end of the loan. Business vehicles fall under the heavily used and abused (not a techincal term) catagory and get a high interest rate. Matt, I will have to look into the "leasing to the business" option, since I just bought a new(er) work truck and financed it under my name and not the business. I know there are good tax breaks for leased equipment.
I just spoke with my dad, who is a retired IRS accountant. If you lease it the business, you can write that lease off, but then you "are suppose" to report that money as income. He suggested just depreciating off on my personal expenses. Then he went into if I was S-Corp I could do this and that. FYI, this was all in reference to my shop and not a vehicle.
IMO Credit unions are quicker to help out the little guy than the big city banks. I started out with a credit card when I was 18....then got quickly in over my head when the power of credit started to lean my way!
My last three (and only three) vehicles loans were all through a credit union. The interest rates of the big banks can't compete with credit unions. I am getting ready to do some major remodeling and a new pole barn and will finance everything through a credit union.
