Best Business Car Loans

Get Started With BusinessLoans.com

Total Rating	4.0
Rates & Fees4.6
Services4.0
Eligibility Requirements4.1
Application3.0
Sales & Advertising Transparency3.6
Customer Service4.1
User Reviews4.4

Pros

High borrowing amounts
No minimum credit score
Quick & easy application process

Cons

Limited fee disclosures on website
Funding can take awhile to disburse

Why Businessloans.com Is The Best Aggregator For Business Car Loans

As a loan aggregator, BusinessLoans.com allows borrowers to apply to its entire network of lenders with a single application. Beyond being an overall strong lender that we rated 4 out of 5 stars, Businessloans.com can just flat-out save applicants time and effort. Even if five out of six lenders in the Businessloans.com network turn you down, you're still getting at least one offer with your application. Many of these loans are well-suited for purchasing vehicles.

BusinessLoans.com is also pretty lenient when it comes to credit ratings--there's no minimum to apply.

Businessloans.com Services

BusinessLoans.com works with lending partners to provide a wide variety of services, including:

Term loans
Short-term loans
Lines of credit
Merchant cash advances

Borrowing amounts range from $5,000 to $3 million.

BusinessLoans.com Rates & Fees

BusinessLoans.com’s rates and fees vary depending on the lender you are paired with.

Businessloans.com Eligibility Requirements

BusinessLoans.com may still be able to connect you with funding even if you don’t meet all the requirements, but you’re more likely to get funding if you meet these baselines:

Time In Business: 6 months
Business Revenue: $100,000
Credit Score: No minimum

When To Use Businessloans.com For Car Loans

You have bad credit.
You want to apply to multiple lenders with a single application.
You haven’t been in business very long.

National Funding: Best For No Downpayment Auto Loans

National Funding

Get Started With National Funding

Total Rating	3.7
Rates & Fees3.8
Services2.8
Eligibility Requirements4.3
Application4.8
Sales & Advertising Transparency3.8
Customer Service2.9
User Reviews3.7

Pros

Low credit score requirements
Discounts for repaying early
Fast & easy application process

Cons

Rates can be expensive
Some additional fees charged

Why National Funding Is A Great Way To Get A Car Loan With No Downpayment

National Funding is one of the longer-running lenders in the alternative lending market, which we gave high ranks to in the areas of breadth and availability of services. While much of National Funding's business is oriented towards short-term loans, it also offers equipment loans and leases that ware well-suited to vehicle purchases. Best of all, there's no down payment, which can be a huge advantage for new businesses.

National Funding Services

National Funding offers equipment financing up to $150,000 with terms of 2 to 5 years. National Funding also offers short-term loans.

National Funding Rates & Fees

National Funding’s equipment financing loans start at 4.99%. You’ll also pay an origination fee of 1-3%

National Funding Eligibility Requirements

To get equipment financing through National Funding, you’ll need to meet these requirements:

Time In Business: 2 years
Business Revenue: $250,000/year
Credit Score: 600

When To Use National Funding For Car Loans

You need a car loan with no downpayment.
You want to lease a vehicle.
You have fair credit

SmartBiz: Best For Online SBA Auto Loans

SmartBiz

Get Started With SmartBiz

Total Rating	4.7
Rates & Fees4.8
Services4.8
Eligibility Requirements4.8
Application4.5
Sales & Advertising Transparency4.9
Customer Service4.9
User Reviews3.5

Pros

Rates tends to be inexpensive
No prepayment penalties
Customer service is helpful

Cons

Application process can be slow
Some additional fees charged

Why SmartBiz Is A Smart Way To Get An SBA Car Loan Online

If you meet SBA borrower qualifications and need a $30,000+ business vehicle loan, SmartBiz is a great place to find a loan to purchase a commercial vehicle. SmartBiz works with SBA-approved banks to streamline the SBA loan application process, allowing business owners to apply online with minimal hassle.

Compared to other online lenders, SmartBiz takes a little longer because of the SBA paperwork and processing requirements. Still, using SmartBiz is faster than securing a traditional SBA loan from a bank. SmartBiz is also a highly reputable company that discloses all its terms and fees and doesn't tack on sneaky hidden fees or terms.

SmartBiz Services

SmartBiz offers the following products through its lending partners:

SBA loans up to $500,000
Bank terms loans up to $350,000
Lines of credit up to $150,000
Custom financing up to $500,000

SmartBiz Rates & Fees

Interest rates for SBA loans range from prime + 2.75% to prime + 3.75%. Term loans have interest rates starting at 9.99%.

SmartBiz Eligibility Requirements

To get equipment financing through National Funding, you’ll need to meet these requirements:

Time In Business: 2 years
Business Revenue: Varies by amount borrowed
Credit Score: 650+

When To Use SmartBiz For Car Loans

You’ve been in business for 2 or more years.
You want to finance your vehicle with an SBA loan.
You have good credit.

Wells Fargo Business Loans: Best Bank Lines Of Credit For Car Loans

Wells Fargo Business Loans

Get Started With Wells Fargo Business Loans

Total Rating	3.8
Rates & Fees5.0
Services3.9
Eligibility Requirements3.7
Application3.8
Sales & Advertising Transparency4.6
Customer Service1.7
User Reviews1.5

Pros

Suitable for large businesses
Long draw terms
Rates tend to be inexpensive

Cons

Fair public reputation
High revenue requirements

Why Wells Fargo Offers The Best Bank Lines Of Credit For Car Loans

Online lenders can offer a lot of speed and convenience to borrowers, but when it comes to excellent rates, banks still have the upper hand. Wells Fargo stands out from many of its competitors by being more accessible to small businesses when it comes to lending.

While Wells Fargo doesn't have the best public reputation, we did give the bank high marks for pricing and transparency. Further, its lines of credit can allow you to have a ready source of cash on hand while you shop around for the vehicle you need. If you prefer terms loans, Wells Fargo can also offer you SBA 7(a) and 504 loans.

Wells Fargo Services

Wells Fargo offers SBA loans up to $10 million. It also offers lines of credit up to $150,000 to small businesses with terms of 1 or 5 years. Those who qualify for a Prime Line of Credit can borrow up to $1,000,000 with indefinite term lengths (reviewed periodically).

Well Fargo Rates & Fees

Interest rates for SBA loans are generally a few points above prime. Lines of credit range from prime + 0.5% to prime + 9.75%.

Wells Fargo Eligibility Requirements

To get funding through Wells Fargo, you need to meet these requirements

Time In Business: 2 years+
Business Revenue: $1.50 in cash flow for every $1 borrowed
Credit Score: 680+

When To Use Wells Fargo For Car Loans

You have good credit.
You have been in business for 2 or more years.
You prefer a line of credit to a loan.

Bank of America Business Loans & Lines of Credit: Best Bank For Small Business Auto Loans

Bank of America Business Loans & Lines of Credit

Get Started With Bank of America Business Loans & Lines of Credit

Total Rating	3.4
Rates & Fees4.2
Services4.4
Eligibility Requirements3.1
Application2.5
Sales & Advertising Transparency3.8
Customer Service2.5
User Reviews2.2

Pros

High borrowing amounts
Multiple types of financing available
Rates tend to be inexpensive

Cons

Borrower qualifications might be hard to meet
Application process is slow and involved

Why Bank Of America Is The Best Bank For Small Business Loans

Sometimes you just want a traditional auto loan with competitive rates. If you run a well-established business with excellent credit and need a loan for a vehicle weighing less than 2.5 tons, Bank of America's auto loans can be an excellent financing option. And if you do need to purchase a heavier vehicle, you can do so with a Bank of America equipment loan or lease instead.

We gave Bank of America high marks for its breadth of services and affordability, both of which make it a strong choice for business car loans.

Bank Of America Services

Bank of America offers business auto loans in amounts starting at $10,000 with term lengths of 48 to 72 months. It also offers:

Business term loans
Lines of credit
SBA loans
Commercial lending
Equipment financing

Bank Of America Rates & Fees

Interest rates for Bank of America auto loans start at 6.19% APR.

Bank Of America Eligibility Requirements

To get funding through Bank of America, you need to meet these requirements:

Time In Business: 2 years
Business Revenue: $250,000/year
Credit Score: 700+

When To Use Bank Of America For Car Loans

You have excellent credit.
You have been in business for 2 or more years.
You want excellent rates and aren’t in a rush.

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%

Services 20%

Eligibility Requirements 20%

Application 15%

Sales & Advertising Transparency 10%

Customer Service 10%

User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

Business Auto Loans VS Personal Auto Loans

Commercial (business) auto loans and personal (consumer) auto loans have similar structures as far as terms and fees. However, there are a few key differences between these two loan types.

Key Differences Between Commercial & Consumer Auto Loans:

Business auto purchases and financing fees are tax-deductible.
Business auto loans help you build business credit.
Purchasing a vehicle through your company will reduce your personal liability for the vehicle but will likely have higher insurance costs.
Personal (consumer) auto loan offers are based on your personal credit history; commercial vehicle financing companies also factor in your business credit score, time in business, and business revenue.

Typically, an established business that requires a vehicle will benefit from financing that vehicle through a commercial vehicle loan. If you have a small, newer business but good personal credit, you may have better luck securing a consumer car loan. Just make sure you consider all of the liability, insurance, and tax implications.

Business Auto Loans VS Leases

When evaluating funding options for business vehicles, there are two major options to consider: commercial auto loans and commercial auto leases. A business owner needs to understand the differences between the two before starting the application process.

Commercial vehicle loans are used to buy the vehicle outright. The borrower pays a set amount each month for the entire length of the term. This payment applies to the loan’s principal amount as well as interest paid to the lender for advancing the money.

The other type of financing is leasing. Leasing is more like a long-term rental. A lessee (in this case, the business owner) agrees to make monthly payments on the vehicle. The lease period will be for a set period, such as three years; during that time, the lessee can only drive the car for a set number of miles per year. The vehicle must be well taken care of and not damaged while in use.

You can read more about these differences in our loans versus leases article.

How To Get A Business Auto Loan

Once you find a business vehicle you want to purchase, you can start the process of obtaining a loan. To secure a business auto loan, you’ll need to gather your necessary business documentation, select a lender, and ideally do some comparison shopping before signing on the dotted line. 60 months is a typical repayment term for most auto loans. Most small business loans also require you to sign a personal guarantee as collateral.

For a rundown on what the process is like, check out our feature on how business loans work.

What Paperwork Do I Need For A Business Auto Loan?

The paperwork you need to submit to get a business auto loan will vary depending on the lender, but you might have to submit documents such as:

Proof of identity
Business license
Articles of incorporation
Employer Identification Number (EIN)
Tax returns
Cash flow statements
Bank statements

Is An Auto Loan Right For Your Business?

Auto loans can be a useful way for a business to finance vehicles needed for everyday operations. While current interest rates and prices are high, with a little legwork you can still find a good deal from the best small business lenders.

Looking for other options for financing equipment? Check out our best equipment financing companies.

FAQs: Best Business Car Loans

Can I get a business auto loan without signing a personal guarantee?

In some cases you’ll have to sign a personal guarantee to get a business auto loan. You might be able to avoid a personal guarantee if you have good credit or if the vehicle itself serves as sufficient collateral.

Do I need to put money down to get an auto loan?

Not necessarily; some lenders may offer a “no down payment” option for the most qualified buyers. However, financing a vehicle with no down payment will result in higher monthly payments and a higher likelihood of your loan going “upside-down” (when you owe more money on the vehicle than what it’s worth).

Should I prefer an SBA approved lender instead of other lenders for an auto loan?

SBA loans tend to have lower rates and better terms compared to other lenders. Additionally, SBA-preferred lenders have more authority to make lending decisions, so the process of getting an auto loan from an SBA-preferred lender might be faster than other SBA lenders.

What is a good interest rate for an auto loan?

Typical interest rates vary by credit score. At current interest rates, a borrower with excellent credit (over 780) should be able to finance a new car for a little over 5.6% APR. For a borrower with fair credit, below 10% would be a good rate.

Bio
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Chris Motola

Expert Contributor at Merchant Maverick

Chris has been writing about small business topics since 2003. He has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.

View Chris Motola's professional experience on LinkedIn.

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1. BusinessLoans.com

❮ ❯

Term loans, STLs, LOCs, & MCAs
FICO: No minimum
APR: Varies by lender

2. National Funding

❮ ❯

Equipment financing, STLs
FICO: 600+
APR: 4.99%+

3. SmartBiz

❮ ❯

SBA loans, term loans, LOCs, & ERC refunds
FICO: 650+
APR

4. Wells Fargo Business Loans

❮ ❯

SBA loans, LOCs
FICO: 680+
APR: Prime + 1.75%+

5. Bank of America Business Loans & Lines of Credit

❮ ❯

Term loans, LOCs, SBA loan, commercial lending, equipment financing
FICO: 670+
APR: 6.19+