Business Auto Loans

  • Finance up to $750,000 within 24-48 hours
  • APRs as low as 7%
  • 6 to 24-month term length
  • Flexible loan terms
  • No collateral needed to get approved
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Automotive Loans

Flexible financing for commercial vehicles, auto parts, car washes, body shops and more.

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’re here to help.

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

Get the financing you need and save time, with loans up to $750,000 and capital distributed in as little as 1 day. We provide auto financing to business owners with good and bad credit - so don’t let a low score discourage you from applying!

6 Best Small Business Auto Loans

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

Term Loan

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

Merchant Cash Advance

MCAs give small business owners the option to trade a portion of their future sales in exchange for capital up-front. MCAs are a popular option with companies who want fast loans with no collateral.

Equipment and Commercial Vehicle Financing

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

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 account receivables.

Business Line of Credit

Auto business credit lines work similar 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.

SBA Microloan

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

As is the case with most government backed 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.

Applying for an Automotive Business Loan:

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

Bank Statements:

Applying for a loan requires little to no doc. The auto loan process is fast - our loan advisors only ask for your last 3 months of bank statements.

Average Monthly Revenue:

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

Outstanding Debt:

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

Amount of Time in Business:

Being around a long time is a good thing in the loan industry. Auto companies who have been operating for several years are considered lower risk than new businesses. We provide capital to businesses who have been operating a minimum of 6 months. We do not fund startups.

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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:

If you’re a business owner struggling to pay rent and keep the doors open, you’re not alone. 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. When you have to lay off team members due to budget constraints, the company suffers. Funds can help keep staff members on payroll during a financial hardship or hire more employees during periods of growth. For qualified Small Business owners, a Clarify loan advisor is available to assist with the Payroll Protection Program.

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 are not in a financial position to purchase automobiles and equipment outright. Others choose business vehicle financing because they want 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 ip overhead costs. Reduced business hours, shut downs, and a decrease in consumer demand have created drastic fluctuations in revenue for many. In these situations, financing can help to 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, financing may be needed to scale business. 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.

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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 used for business purposes. Business owners borrow capital from an auto lender to increase available resources and complete work-related tasks with greater efficiency.

Financing can be used to buy specific equipment, like light to medium duty trucks used for transportation or building. Companies within the auto-industry, like a body shop or car dealership, can use auto loans for a variety of 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 both a business expense and company asset. There are tax benefits to financing this way, like being able to deduct 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 application and provide recent bank statements for proof of income. Lenders validate your financials, make sure everything looks good, and provide you with multiple loan offers to select from. Once you make a decision, you’re all set to receive working capital.

The process is stream-lined 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.




Frequently Asked Business Auto Loans Questions


The level of difficulty depends on your lender, company, and whether you meet eligibility requirements. Vehicle financing is not necessarily easy or hard to get. That being said, applying for a business auto loan with online lenders is generally considered easier because the qualification criteria is not as strict compared to traditional banks.
Yes. We offer business vehicle financing and auto company loans with no personal guarantor or collateral needed.
Speak with a loan advisor to discuss which option makes sense for you. At Clarify, we offer several auto loans with no down payment needed.
Small business auto loan rates start at low as 7% at Clarify Capital. The interest rate you're eligible for will vary on a case-by-case basis. Your business financials and the industry of your company will impact auto loan APR.
Yes. We regularly provide working capital to small business owners with wide-ranging credit scores.You can get an auto repair shop loan with bad credit.
Buying tends to be advantageous for borrowers who want to increase equity and own the business asset out-right. Leasing can be beneficial if the vehicle is prone to wear and tear and unlikely to hold up over time.

Types of Auto Companies We’ve Funded:

  • check Auto Repair Shops
  • check Trucking Companies
  • check Tire and Auto Parts
  • check Car Wash & Detailing
  • check Towing
  • check Food Truck Services
  • check Car Hauling Businesses
  • check Landscaping
  • check Auto Manufacturers
  • check Small Business Car Dealerships
  • check Rental Agencies
  • check Commercial Taxi Services
  • check Personal Driving Companies

Common Uses for Business Auto Loans:

  • check Business Car Leasing
  • check Commercial Truck Financing
  • check Purchasing a Company Vehicle
  • check Securing a Lower Auto Loan Rate
  • check Body Shop Financing
  • check Buying a Vehicle for a Small Business
  • check Semi Truck Financing with Bad Credit
  • check Commercial Auto Loan with No Money Down
  • check Trucking Equipment Loans
  • check Small Work Vehicles and Cargo Vans

Dedicated experts in automotive financing

When you choose Clarify, we consider you family -- and work with you through the ups and downs of running an automotive business.Construction Financing Team

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Automotive business loans

"Clarify Capital was able to get me exactly what I needed. I had short-term loans that were really hurting my cash flow. Clarify provided me with a 2 year consolidation loan which alleviated a lot of my financial stress. They delivered on their promise and I would highly recommend working with them for a small business loan."

Ian
Automotive Repair Shop
Virginia
5-star Trustpilot reviews5-star Trustpilot ratingClarify Capital is rated 10/10 based on 122 reviews on Trustpilot

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