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 for startups, businesses with low revenue, or businesses with bad credit to be eligible for financing.
Below are our six picks for the best business auto loan lenders:
- Bank of America: Best overall for low rates
- SBG Funding: Best short-term financing
- National Funding: Best for customer service and custom loan options
- QuickBridge: Best for an easy application process with minimal paperwork requirements
- Balboa Capital: Best for fast funding speeds
- Crest Capital: Best for flexible vehicle qualification requirements
Best Business Auto Loan Providers At a Glance
Provider | Maximum Loan Amount | Estimated Annual Percentage Rate (APR) | Maximum Loan Term | Minimum Credit Score | Time in Business Required | Annual Business Revenue Required |
|---|---|---|---|---|---|---|
 | $100,000 | 6.69% | 6 years | 680 recommended | 2 years recommended | Varies |
| $5 million | 7 years | 500 | 6 months | $250,000 | |
 | $400,000 | 15% | 5 years | 600 | 6 months | $250,000 |
 | $400,000 | 15% | 18 months | 600 | 6 months | $250,000 |
 | $500,000 | 7% | 5 years | 620 | 1 year | $100,000 |
 | $1 million | 7.5% | 7 years | 650 recommended | 2 years recommended | Varies |
Bank of America: Best Overall for Low Rates
 | |
Rates & Terms | |
Estimated APR | 6.69% |
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 recommended |
Annual Business Revenue | Varies |
Vehicle Restrictions |
|
Why We Like Bank of America
Bank of America’s business auto loans can be used to purchase or refinance cars, vans, or light trucks. It has the lowest rates in our guide, making it a good option for businesses looking to minimize interest expenses on a loan.
With that being said, it’s possible for you to qualify for an additional interest rate discount of up to 0.50%. This discount is dependent on your relationship with the bank as a Preferred Rewards member. Your Preferred Rewards status is determined by your qualifying balance in a Bank of America business checking account, and you can visit the Bank of America website for details on its Preferred Rewards for Business program.
Another perk with Bank of America is the ability to get a 30-day rate lock when you get approved. With a rate lock, you can get additional time to locate a suitable vehicle without having to worry about fluctuating interest rates.
If you need to purchase a commercial vehicle over 2.5 tons, you’ll need to consider a Bank of America equipment loan, which carries a different set of rates, terms, and qualification requirements.
To learn more or to submit an application online, you can visit the Bank of America website.
SBG Funding: Best Short-term Financing
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Rates & Terms | |
Estimated APR | 3.75% monthly |
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 | 500 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Vehicle Restrictions | Not stated |
Why We Like SBG Funding
SBG Funding offers equipment financing that can be used to purchase business vehicles or to expand an existing fleet. You also have the option to select an equipment lease or loan; you can read our comparison of equipment loans vs leases to help you decide which is best for you.
The provider has the lowest minimum credit score requirement on our list. However, it can also be more expensive than other lenders. Its rates are reflected as an average fixed monthly percentage. At an average of 3.75% per month, fees can quickly add up. As such, it may be a better option for short-term financing.
The upside, however, is the fact that SBG Funding has a high approval rate of 85%. As long as you meet the minimum stated requirements, you’ll have a good chance of getting approved.
You can submit an application on SBG Funding’s website, a process that should take no more than 10 to 15 minutes. 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, and an invoice for the equipment being purchased.
National Funding: Best for Customer Service and Custom Loan Options
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Rates & Terms | |
Estimated APR | 15%-plus (factor rates as low as 1.11x) |
Loan Amount |
|
Loan Term |
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Repayment Schedule |
|
Funding Speed | 24 to 72 hours |
Qualifications | |
Required Down Payment | Varies |
Credit Score | 600 |
Time in Business |
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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 (BBB). With National Funding, you’ll get a personalized experience with a dedicated funding specialist who will partner with you to learn about your business qualifications and needs to provide a loan tailored to your specific 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 end up repaying 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 to apply, you can head over to the National Funding website.
QuickBridge: Best for an Easy Application Process & Minimal Paperwork Requirements
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Rates & Terms | |
Estimated APR | 15%-plus (factor rates as low as 1.11x) |
Loan Amount | $10,000 to $400,000 |
Loan Term | 4 to 18 months |
Repayment Schedule | Daily and weekly |
Funding Speed | As fast as 24 hours |
Qualifications | |
Required Down Payment | None stated |
Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Vehicle Restrictions | None stated |
Why We Like QuickBridge
QuickBridge offers a similar product to National Funding. It does not, however, offer a specific equipment financing product with the option to make monthly loan payments. For this reason, we’ve placed it below National Funding.
With that said, QuickBridge is otherwise nearly identical to National Funding when it comes to qualification requirements, rates, and terms. It offers small business loans that can be used for working capital and other business purposes, including the purchase of business vehicles. No collateral is required, although you will need to agree to personally guarantee the loan.
Just like National Funding, QuickBridge offers an early repayment discount. You can visit the QuickBridge website to submit an application or contact the company with any questions you may have.
Balboa Capital: Best for Fast Funding Speeds
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Rates & Terms | |
Estimated APR | 7% to 25%-plus |
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. In total, 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 that can be completed in as soon as 2 minutes if you have the necessary information about your business and 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 an 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.
Crest Capital: Best for Flexible Vehicle Qualification Requirements
| |
Rates & Terms | |
Estimated APR | 7.5%-plus |
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.
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 such as tax returns, financial statements, written statements indicating your intended use of the vehicles, and a list of current business debts. Approvals for these larger loan amounts may take one business day or longer.
While Crest Capital does have specific requirements for things like credit score and time in business, it places a large emphasis on 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.
How We Chose the Best Business Auto Loans
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
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. 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 providers 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. We recommend contacting a company from our list of the best ROBS providers to walk you through this process.
Refer to our guide on how to get a small business loan if you require assistance with the process.
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. A business auto loan 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 Small Business Administration (SBA) loans. The terms and conditions of a loan will specify what types of purchases are prohibited.
Bottom Line
The providers we’ve chosen provide competitive rates for different types of business vehicles. Keep in mind that the best rates often require good credit and strong business finances and that meeting the minimum eligibility criteria does not guarantee approval. To get the best rate possible, we recommend getting quotes from multiple lenders before making a final decision.
