Business Auto Loans

Get Commercial Auto Financing for Your Business

All types of businesses require reliable vehicles to get the job done and keep things running smoothly. Some companies require construction vehicles for building, while others need trucks to transport shipments and complete deliveries. Whether you want to refinance a large truck for moving products, lease a company car for commuting, or even purchase auto parts, we can get you a fast business loan when needed.

Our mission is to provide customer-centric access to capital. Clarify's network of 75+ business auto lenders competes to provide you with the lowest interest rates available. Choose from multiple hand-picked funding options based on your needs and preferences.

Get the loan amount you need and save time, with loans up to $5M and capital distributed in as little as one day. We provide financing options to business owners with good and bad credit — so don't let a low score discourage you from applying!

Apply for Business Auto Loan

6 Best Small Business Auto Loans

The best auto financing type will depend on your needs and preferences. Each funding type has its advantages and drawbacks. A lending adviser can help you decide which loan type is a good fit for you and your company.

Term Loan

Also known as traditional business loans, these are common among small business owners who want regular and predictable payment schedules. Short-term loans can be unsecured or secured. Unsecured commercial vehicle loans don't require a guarantor.

• Apply for Term Loan

Merchant Cash Advance

A merchant cash advance (MCA) allows small business owners to trade a portion of their future sales in exchange for capital upfront. MCAs are a popular option for companies that want fast loans without collateral.

• Apply for Merchant Cash Advance

Equipment and Commercial Vehicle Financing

Business car loans can be used to buy or lease trucks, fleets, trailers, vans, and more. You might be interested in an equipment loan if you have bad credit and need auto funding. Low credit scores are accepted, and financing is available with no money down.

• Apply for Equipment Financing

Invoice Factoring

Also called invoice financing, this auto loan product uses unpaid invoices to provide an infusion of working capital. The amount of funding a business is eligible for is based on outstanding accounts receivable.

• Apply for Invoice Factoring

Business Line of Credit

Auto business credit lines work similarly to your basic personal credit card. They're a good match for borrowers desiring maximum flexibility and control.

Credit lines provide a financial buffer to deal with the unexpected, like when a vehicle breaks down. The extra capital can be used for fluctuating costs, like inventory buying and purchasing auto parts.

• Apply for Business Credit Line

SBA Microloan

The U.S. Small Business Administration (SBA) provides funding to business owners through the Microloan program. A large down payment isn't required, making it a more affordable option than SBA7(a) loans for business owners with limited cash reserves.

As with most government-backed small business loans, you can expect a lengthier funding timeline. There's more documentation required, and borrowers are working with a larger organization, which slows the process.

• Apply for SBA Microloans

Applying for an Automotive Business Loan:

Many applicants fall into two categories: They need a business loan for a commercial vehicle or working capital for their automotive company. Below are the main business car loan requirements and disclosures our lenders look at.

Bank Statements

Applying for a loan requires little to no documentation. The auto loan process is fast — our loan advisers only ask for your last three months of bank statements.

Average Monthly Revenue

Business auto loan lenders like to see around $10,000 in monthly revenue. The more money your business generates, the larger the loan size you qualify for.

Outstanding Debt

A business's debt-to-income (DTI) ratio is considered when putting together loan packages. The preferred DTI ratio will vary from lender to lender. Carrying low levels of debt can help you get the best commercial loan offers.

Amount of Time in Business

Being around for a long time is good in the loan industry. Auto companies that have operated for several years are considered lower risk than new businesses. We provide capital to businesses that have operated for at least six months. We don't fund startups.

Apply for Business Auto Loan

Common Uses for Business Auto Loan

We understand the importance of meeting wide-ranging business needs. We've provided working capital to businesses for all sorts of reasons. Here are some popular uses for commercial funding.

Commercial Rent

You're not alone if you're a business owner struggling to pay rent and keep the doors open. Small businesses experience ups and downs all the time. Auto financing can be used to pay all types of overhead expenses, including rent, utilities, and recurring bills.

Payroll

Finding the right talent is hard enough. The company suffers when you have to lay off team members due to budget constraints. Funds can help keep staff members on payroll during financial hardship or hire more employees during periods of growth. For qualified small business owners, a Clarify loan adviser is available to assist with the Paycheck Protection Program (PPP).

Taxes

When profit margins are slim, tax season can seem daunting. Fortunately, business owners can take out a loan to offset a large tax burden and free up additional cash reserves. Financing allows borrowers to space out repayment rather than pay a lump sum at once. We get that Uncle Sam can't always wait, and we're here to help.

Buying and Leasing Equipment

Vehicles are an essential resource for businesses. Some small business owners can't afford to purchase automobiles and equipment outright. Others choose business vehicle financing to increase liquidity and maintain a cash buffer.

Pandemic-Related Costs

For many small businesses, navigating the new norm has meant dealing with additional costs and a reduction in revenue. Keeping customers and staff safe might mean purchasing personal protective equipment (PPE) and sanitation supplies, which can drive up overhead costs.

Reduced business hours, shutdowns, and a decrease in consumer demand have created drastic fluctuations in revenue for many. In these situations, financing can help bridge cash flow gaps.

Emergency Expenses

Sometimes, the worst-case scenario happens, and life throws a curveball. Part of being a business owner is persevering through the unexpected. An infusion of working capital helps businesses weather difficult times.

Growing Your Company

During an expansion, businesses may need financing to scale. If your company is undergoing an exciting period of growth, a loan can provide the means to buy more inventory, make business acquisitions, open a new location, and more.

Find Best Commercial Auto Loan

What Are Commercial Auto Loans?

A commercial auto loan, also known as a business auto loan, is a form of funding used to purchase, refinance, or lease cars for business purposes. Business owners borrow capital from an auto lender to increase available resources and complete work-related tasks with greater efficiency.

You can use financing to buy specific equipment, including new cars and light- to medium-duty trucks for transportation or building. Companies within the auto industry, like body shops or car dealerships, can use auto loans for various business expenses.

Business Auto Loans and Personal Auto Loans: What's the Difference?

If you've taken out a personal auto loan, you'll find a lot of overlap with how business auto loans work. The main distinguishing factor is that with a commercial auto loan, the automobile is paid for with business funds and considered a company expense. Personal loans are usually used for passenger cars meant for personal travel and leisure.

How you plan to use the vehicle makes all the difference. In many ways, commercial financing is the better option from a cost-savings perspective. The vehicle is considered a business expense and company asset. There are tax benefits to financing this way, like deducting up to 100% of the vehicle purchase price.

How Do I Get an Auto Loan for My Business?

Getting small business vehicle financing is simple. You fill out a short online loan application and provide recent bank statements for proof of income. Lenders validate your financials, such as your FICO score, to determine your creditworthiness and provide multiple loan offers to select from. Once you make a decision, you're all set to receive working capital to your business bank or checking account. Then, you'll make monthly payments until you pay off the loan.

The process is streamlined and fast, so you can get your auto loan and be on your way! We understand you have a business to run and don't want to be held up by heaps of paperwork.

FAQs about Business Auto Loans

Need money for your auto business fast? You're not alone. Here are answers to questions others like you often ask about our quick business funding.