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 eight picks for the best business auto loan lenders:
- Bank of America: Best overall for low rates
- SBG Funding: Best long-term financing for low credit scores
- Smarter Finance USA: Best for customer service and flexible loan qualifications
- PNC Bank: Best line of credit for new or used passenger vehicles
- 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 SUVs and flexible vehicle qualification requirements
Best Business Auto Loan Providers At a Glance
Provider | Maximum Loan Amount | Estimated Starting Annual Percentage Rate (APR) | Maximum Loan Term | Minimum Credit Score | Time in Business Required | Annual Business Revenue Required |
---|---|---|---|---|---|---|
$100,000 (may vary) | 6.99% | 6 years | 680 recommended | 2 years | Varies | |
$5 million | 3.75% monthly | 7 years | 600 | 6 months | $350,000 | |
$1 million | 7% | 5 years | None | None | None | |
$250,000 | 6 years | 680 recommended | 2 years recommended | Varies | ||
$500,000 | 15% | 5 years | 600 | $250,000 | ||
$500,000 | 15% | 16 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 | 6.99% |
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 Long-term Financing for Low Credit Scores
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 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 can offer the longest repayment term on our list along with a low minimum credit score requirement. 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.
Smarter Finance USA: Best for Customer Service and Flexible Loan Qualifications
Rates & Terms | |
Estimated APR | 7% to 20%-plus |
Loan Amount | $10,000 to $1 million |
Loan Term | 24 to 60 months |
Repayment Schedule | Weekly, monthly, seasonal, and 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 | None |
Why We Like Smarter Finance USA
Smarter Finance USA offers commercial auto financing for nearly any type of vehicle. This can include 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 in an effort 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 whether you will get approved, Smarter Finance can give you an idea of what you might be able to 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.
PNC Bank: Best Line of Credit for New or Used Passenger Vehicles
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 | Not stated |
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 individual 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 with lowering 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 fits the bill.
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 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.
National Funding: Best for Customer Service and Custom Loan Options
Rates & Terms | |
Estimated APR | 15%-plus (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 (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
Rates & Terms | |
Estimated APR | 15%-plus (factor rates as low as 1.11x) |
Loan Amount | $10,000 to $500,000 |
Loan Term | 4 to 16 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.
An advantage of working with QuickBridge, however, is a greater likelihood of getting through the loan approval and funding process with significantly less paperwork and required documentation. It typically requires a minimum of four months of business bank statements but otherwise tries to keep requests for other financial statements to a minimum.
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
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 SUVs and Flexible Vehicle Qualification Requirements
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 personal name. To be eligible for this program, business owners must meet higher requirements.
- Five years’ time in business
- All individuals with 20% or more ownership must have a FICO credit score of 700+ and own a home
- Vehicles must be no older than three years, have a maximum of 125,000 miles, and have 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 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.
To apply or learn more, visit the Crest Capital website.
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 itself, as well as 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. 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 Small Business Administration (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. 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.