The best business auto loan providers should have competitive rates, flexible loan terms, and few restrictions on eligible vehicles. Qualification requirements should also be easy to meet, allowing startups, businesses with low revenue, or businesses with bad credit to qualify for financing.
Below are our seven picks for the best business auto loan lenders:
- SBG Funding: Best overall for rates and terms
- National Funding: Best for customer service
- Smarter Finance USA: Best for easy qualifications
- Bank of America: Best discounts for banking customers
- PNC Bank: Best credit line for new or used passenger vehicles
- Crest Capital: Best for SUVs and flexible vehicle requirements
- Balboa Capital: Best for fast funding speeds
Best Business Auto Loan Providers at a Glance
Provider | Maximum Loan Amount | Estimated Starting APR | Maximum Loan Term | Minimum Credit Score | Time in Business Required | Annual Business Revenue Required |
|---|---|---|---|---|---|---|
| $5 million | 3.75% monthly | 7 years | 600 | 6 months | $350,000 |
 | 15% | 600 | $250,000 | |||
 | $1 million | 10% | 5 years | None | None | |
 | $100,000 (may vary) | 6.79% | 6 years | 680 recommended | 2 years | Varies |
| $250,000 | 6 years | 680 recommended | 2 years recommended | Varies | |
 | $1 million | 7.5% | 7 years | 650 recommended | 2 years recommended | Varies |
 | $500,000 | 7% | 5 years | 620 | 1 year | $100,000 |
SBG Funding: Best Overall for Rates & Terms
 | |
Rates & Terms | |
Estimated APR | 3.75% average monthly fixed rate |
Loan Amount | Up to $5 million |
Loan Term | 1 to 7 years |
Repayment Schedule | Monthly |
Funding Speed | 48 to 72 hours from time of application |
Qualifications | |
Required Down Payment | As low as 0% |
Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $350,000 |
Vehicle Restrictions | Not stated |
Why We Like SBG Funding
SBG Funding is our top overall pick because of the combination of its rates and terms. It offers an equipment financing program that can be used to finance business vehicles, with options for loans and leases.
The lender offers custom repayment options to suit your cash flow needs. This can include adjustments to the loan term and recurring payment amounts. Eligible companies may also get deferred payments for up to three months. SBG Funding advertises a high approval rate of 85%, but be aware that meeting the minimum stated qualifications does not guarantee approval as there could be additional requirements based on your specific circumstances.
To apply or learn more, visit the SBG Funding website. Applications take under 15 minutes, and you can expedite the review process by preparing the minimum required documents. Required documents include:
- Four months of business bank statements
- A voided check to verify your business bank account number
- A driver’s license or other government-issued photo identification for all business owners
- An invoice for the equipment you’re purchasing
National Funding: Best for Customer Service
| |
Rates & Terms | |
Estimated APR | 15%+ (Factor rates as low as 1.11x) |
Loan Amount |
|
Loan Term |
|
Repayment Schedule |
|
Funding Speed | 24 to 72 hours |
Qualifications | |
Required Down Payment | Varies |
Credit Score | 600 |
Time in Business |
|
Annual Business Revenue | $250,000 |
Vehicle Restrictions | Varies |
Why We Like National Funding
National Funding operates with a large emphasis on delivering a high level of customer service. This is evidenced by the number of repeat customers it receives and its high rating on third-party sites such as Trustpilot and the Better Business Bureau. With National Funding, you’ll get a personalized experience with a dedicated funding specialist who will learn about your business qualifications and needs and provide a loan tailored to your company.
The lender offers equipment financing and small business loans that can be used for business vehicles. It charges factor rates as low as 1.11x for businesses with excellent credit. With factor rates, you multiply it by your loan amount to determine the total amount you’ll repay for the loan.
If you’re looking to reduce loan expenses, National Funding offers early repayment discounts. For its small business loans, you can get a discount of up to 7% of the remaining balance for loans paid in full within 100 days. Equipment loans can qualify for up to a 6% discount on the remaining balance when the loan is paid off early.
To learn more or apply, you can visit the National Funding website.
Smarter Finance USA: Best for Easy Qualifications
| |
Rates & Terms | |
Estimated APR | 10% to 20%+ |
Loan Amount | $10,000 to $1 million |
Loan Term | 24 to 60 months |
Repayment Schedule | Weekly, monthly, seasonal, deferred |
Funding Speed | 1 to 4 days |
Qualifications | |
Required Down Payment | As low as 0% |
Credit Score | None, but 600 is recommended |
Time in Business | None |
Annual Business Revenue | None |
Vehicle Restrictions | Not stated |
Why We Like Smarter Finance USA
Smarter Finance USA offers commercial auto financing for nearly any type of vehicle. This includes trucks, vans, regular cars, and specialized vehicles—such as tow trucks or refrigerated trucks. It’s also the only lender on our list with no hard requirements for minimum credit score, time in business, or annual revenue.
All applications are reviewed on a case-by-case basis to maximize approval odds. As a broker with nearly 40 lenders in its network, Smarter Finance USA can match you with a provider willing to issue funding to businesses with a wide range of qualifications.
If you’re worried about getting approved, Smarter Finance can give you an idea of what you might get without any impact on your credit score. It does this by conducting only a soft credit pull for prequalification purposes.
To learn more or to apply, visit the Smarter Finance USA website.
Bank of America: Best Discounts for Banking Customers
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Rates & Terms | |
Estimated APR | 6.79% |
Loan Amount | $10,000 to $100,000, but may vary |
Loan Term | 48 to 72 months |
Repayment Schedule | Monthly |
Time to Funding | 1 to 5 days |
Qualifications | |
Required Down Payment | None |
Credit Score | 680 recommended |
Time in Business | 2 years |
Annual Business Revenue | Varies |
Vehicle Restrictions |
|
Why We Like Bank of America
If you have banking products with Bank of America, you could get one of the most competitive rates in our guide with its business auto loan program. This is because the company provides discounts based on the three-month average daily balance of your business checking account; read our Bank of America business checking review if you don’t have an account.
You can get a:
- 0.25% discount with a qualifying balance between $20,000 and $50,000
- 0.35% discount with a qualifying balance between $50,000 and $100,000
- 0.50% discount with a qualifying balance of more than $100,000
With Bank of America, funds can be used to purchase or refinance cars, vans, and light trucks. Vehicles over 2.5 tons can be financed through the bank’s separate equipment loan program. Loans and leases are both available as options, and if you don’t have a vehicle selected yet, you can take advantage of the company’s 30-day rate lock to secure a low rate while you continue shopping.
To learn more or to submit an application online, you can visit the Bank of America website. Most applications can be completed in under 10 minutes.
PNC Bank: Best Line of Credit for New or Used Passenger Vehicles
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Rates & Terms | |
Estimated APR | Undisclosed, but estimated at 7% and up |
Loan Amount | $10,000 to $250,000 |
Loan Term | Up to 72 months |
Repayment Schedule | Monthly |
Funding Speed | 1 to 5 business days |
Qualifications | |
Required Down Payment | As low as 0% |
Credit Score | Undisclosed, but 680 is recommended |
Time in Business | 2 years recommended |
Annual Business Revenue | Varies |
Vehicle Restrictions | Business-use new or used passenger vehicles |
Why We Like PNC Bank
PNC Bank offers a line of credit that can be used to finance the purchase of a new or used passenger vehicle. Due to the flexibility of the credit line, it’s also a good option for businesses that want to purchase multiple vehicles in the near term and do not want to get separate financing for each car.
Unlike some credit lines that have a variable interest rate, PNC Bank offers only a fixed-rate option. It also has one of the longest repayment terms in our guide, which can help lower monthly payments and boost a company’s cash flow. Payments must be made monthly from an existing PNC business checking account; read our review of PNC business checking to find a product that suits your needs.
The bank does not disclose all of its requirements. Like many lenders, it takes a holistic review of the overall application to determine whether it can issue an approval and at what rates and terms. Some examples of items it can consider include the net worth of the business owners, collateral, payment history with PNC specifically, years in business, and other financial and credit trends.
To learn more or to apply, visit the PNC Bank website.
Crest Capital: Best for SUVs and Flexible Vehicle Qualification Requirements
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Rates & Terms | |
Estimated APR | 7.5% and up |
Loan Amount | Up to $1 million |
Loan Term | Up to 84 months |
Repayment Schedule | Monthly |
Funding Speed | As fast as 24 hours |
Qualifications | |
Required Down Payment | None |
Credit Score | 650 recommended |
Time in Business | 2 years recommended |
Annual Business Revenue | Varies |
Vehicle Restrictions | No age or mileage restrictions |
Why We Like Crest Capital
Crest Capital offers vehicle financing with flexible eligibility criteria. It allows private-party sales, has no age or mileage restrictions, and can issue financing with no down payment required. Eligible vehicles include trucks, buses, vans, limos, and trailers.
A standout feature of Crest Capital is its ability to offer financing on SUVs in the name of a business, something that many other lenders are only willing to do in the business owner’s name. To be eligible for this program, business owners must meet stricter requirements, including:
- 5 years in business
- A FICO credit score of 700+ and own a home for all individuals with 20% or more ownership
- Vehicles must be no older than three years, have a maximum of 125,000 miles, and have a value that does not exceed $150,000
For its standard commercial auto financing programs, the provider offers a streamlined application-only process for loan amounts less than $250,000. With this, you won’t have to provide tax returns, balance sheets, or financial statements. This allows it to issue approvals in under 4 hours. Loan amounts greater than $250,000 will require more paperwork and one business day or longer to get approved and funded.
Crest Capital emphasizes whether you have a history of paying your bills on time. If you are currently or recently delinquent on bills, you may not be approved even if you meet the minimum recommended credit score. Similarly, if your business credit history is short but payments have always been timely, you’ll have a good chance of getting approved.
To apply or learn more, visit the Crest Capital website.
Balboa Capital: Best for Fast Funding Speeds
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Rates & Terms | |
Estimated APR | 7% to 25%+ |
Loan Amount | Up to $500,000 |
Loan Term | 24 to 60 months |
Repayment Schedule | Monthly |
Time to Funding | As fast as the same day |
Qualifications | |
Required Down Payment | None |
Credit Score | 620 |
Time in Business | 12 months |
Annual Business Revenue | $100,000 |
Vehicle Restrictions | Varies |
Why We Like Balboa Capital
If you need funding quickly, few lenders can match the speed of Balboa Capital. The application, approval, and funding steps can be completed potentially on the same day for qualified businesses.
Balboa Capital has an online application for its equipment financing product you can complete in as soon as 2 minutes if you have the necessary information about your business and the type of loan you need. Approvals can be issued within 1 hour during regular business hours. Depending on when you began the application and when you received approval, same-day funding is also available.
As part of its ability to issue loans quickly, it has easy documentation requirements because of its application-only process for hard collateral loans up to $500,000. Head over to the Balboa Capital website to submit an online application.
How We Chose the Best Business Auto Loan Lenders
We considered the following items in selecting the best business auto loans:
- Interest rates and estimated APRs
- Credit score, time in business, and revenue requirements
- Down payment requirements
- Loan amount, terms, and repayment options
- Early payment discounts
- Vehicle restrictions, such as mileage and age
- Application, approval, and funding speeds
- Customer reviews and ratings
How to Choose a Business Auto Loan
Before signing any final loan documents, consider what is most important to you when getting financing. This can include details about the loan and the lender you’ll be making payments to. We recommend shopping rates with multiple lenders and thinking about some of the items below before making any final decisions on a loan:
- Flexibility of qualification requirements
- Interest rates
- Fees, including prepayment penalties
- Repayment term and monthly payments
- Approval and funding speeds
- Branch locations
- Customer reviews and ratings
- Customer service hours and hours of operation
How to Get a Business Auto Loan
Getting a business auto loan can be done in several steps. We’ve summarized them below, but you can also head over to our guide on commercial auto financing for more detailed information on each step.
- Step 1: Determine the type of vehicle suitable for your business needs
- Step 2: Create a budget and research any associated operating costs
- Step 3: Understand your qualifications
- Step 4: Find lenders, and apply for financing
- Step 5: Review and accept final loan terms
Alternatives to a Business Auto Loan
Doing some preparation before you get a small business loan can save you time and increase your chances of getting approved. However, if you’re having trouble getting approved because your business doesn’t qualify or the vehicle condition doesn’t meet a lender’s requirements, here are some alternative financing options you can consider:
- Small business line of credit: This is a revolving line of credit that allows you to draw funds on an as-needed basis. It can be used to fund business expenses, including vehicles, without the typical auto loan requirements, such as vehicle age or odometer restrictions. Check out our guide on business credit lines, and if it’s a good fit, you can get started with our roundup of the best small business lines of credit.
- Personal loan for business purposes: If your business cannot qualify for a loan but you have good personal credit, this type of financing can be a good alternative to consider. We’ve selected the best personal loans for business funding for a variety of credit profiles.
- Rollover for business startups (ROBS): A ROBS isn’t a loan, so it doesn’t carry the typical financing requirements, such as credit score, revenue, or time in business. Rather, a ROBS is a way to get access to your retirement accounts tax- and penalty-free. Check out our ROBS guide to learn how it works and our list of the best ROBS providers.
Frequently Asked Questions (FAQs)
A business auto loan is used to finance a vehicle for business purposes. Business auto loans can cover a wide range of vehicles, such as cars, trucks, vans, trailers, and limos. Depending on the lender, it may require you to title the vehicle in the name of your company. You may also need to disclose whether the vehicle has any personal uses, as it may disqualify you from certain loan programs.
A business auto loan can make you eligible for certain tax deductions and write-offs. It can also protect your personal assets in the event you default on the loan. This can be true if the vehicle is titled in your company’s name and you were not required to provide a personal guarantee for the loan.
Yes. Examples of loans that can be used to finance a business vehicle include equipment loans, business lines of credit, and SBA loans. The terms and conditions of a loan will specify what types of purchases are prohibited.
Bottom Line
The lenders we’ve chosen provide competitive rates for different types of business vehicles. However, the best rates typically require good credit and strong business finances, and meeting the minimum eligibility criteria does not guarantee approval. To get the best rate, we recommend getting quotes from multiple lenders before making a final decision.
