Uber & Lyft Financing: 10 Ways to Fund Your Rideshare Business

Uber financing and Lyft financing solutions include vehicle rentals, business loans, personal loans, and credit cards. Uber and Lyft partner with car rental companies, but don’t offer any direct financing solutions for drivers. Financing auto repairs, vehicles, and daily purchases like meals and gas requires drivers to work with an outside lender.

Top Rideshare Business Financing Options

What Uber Financing Is

Uber has never offered car loans to drivers. They temporarily offered a vehicle leasing program called Xchange Leasing. However, rates were high, driver credit wasn’t considered, and payments were deducted monthly directly from income, resulting in a complaint from the FTC. Uber financing was shut down and Uber replaced it with Uber car rentals for drivers.

Uber financing is a series of partnerships that Uber maintains with rental companies like Fair, Getaround, and Hertz that drivers can access to rent a car. Rentals are available by the hour, day, week, and month and pricing varies by car and city. It’s a good solution for drivers wanting to try working with Uber or rideshare businesses needing a vehicle while theirs is being maintained or repaired.

Who an Uber Car Rental Is Right For

Uber’s car rental program is ideal for certain drivers including:

• Those who want to try Uber with no risk: Every location in the United States has varying levels of demand for Uber drivers and offers a different amount of income per hour. By renting a vehicle, drivers can determine if investing in a rideshare business long term is for them.
• Drivers who can’t afford a qualifying vehicle: The costs of auto business loans can be expensive. These costs include auto insurance, financing payments, down payments, and various fees. Drivers who want to reduce or avoid these costs can do so by renting a car through Uber.
• Those who want a vehicle that meets minimum qualifications: Qualifying for traditional auto leasing or financing can be difficult. Whether you don’t have sufficient income, a high enough credit score, or are running into other issues, renting a car can be a great alternative.
• People who need a temporary replacement vehicle: If you already drive for Uber, you may not want to miss potential income while your vehicle is being repaired. Renting a car to drive for a few days can keep your earnings going while you wait.

The Uber car rental program gives new and existing drivers an option for getting a vehicle quickly to complete trips. New drivers can use the program to experiment with Uber or earn some money on the weekends. Existing drivers can avoid missing days if their vehicle is in the shop by renting a replacement car for a few hours or a few days.

Uber Car Rental Costs

Uber offers drivers three rental companies that they can work with. According to a disclosure on its website, working with an unapproved rental company can cause Uber to suspend your account. Hertz has the most expensive starting rates per week, and Fair is the only company that charges a non-refundable start fee. Getaround is the only rental company we evaluated that offers an hourly vehicle solution for drivers and no security or start fee.

If you drive full time with a rental car, you could also qualify for bonuses from Uber that can offset the cost of your rental car. In some cities, completing 70 trips in a week can earn you a $185 bonus, which covers the lowest cost rental from Fair. Completing 120 trips in a single week can earn you $305, which offsets some higher-cost Uber car rental options.

Uber Car Rental Terms

Every rental company that partners with Uber offers vehicle rentals that include commercial auto insurance, roadside assistance, and basic maintenance. You can structure your rental based on how long you need the vehicle, from a few hours to several weeks. There are also no mileage restrictions, and the vehicles are available in 26 major cities, with many major cities featuring all three rental options.

Uber Car Rental Qualifications

To qualify for the Uber car rental program, Uber must first approve you as a driver. You also must meet the age requirement to rent a car, which can be as low as 19 years old but may vary depending on the state and city you are in. There are no minimum rides; however, completing less than 20 rides typically won’t provide enough income to cover the rental cost.

What Uber Car Rental Is Missing

Uber’s car rental program gives drivers that don’t have a vehicle available or can’t qualify for financing a reasonable option to get on the road quicker. However, it can be expensive and requires that you commit to earning enough to cover the rental and fuel costs. You also won’t own the vehicle, no matter how long you rent it for, unlike business and personal car financing.

How to Apply for Uber Car Rental

To apply for a rental car for Uber, you need to qualify as a driver and get Uber approval. Once that’s done, you can fill out a form online with your personal details and receive an instant quote from the rental company. In some cities, you may even get the car delivered to your doorstep so you can jump in and start taking rides.

Visit Uber Car Rental

What Lyft Financing Is

Lyft does not offer driver auto loans or auto leases. However, in response to Uber’s rental program, Lyft launched Express Drive. With its program, drivers could rent a vehicle for the week and collect fares from Lyft users the day they apply. The weekly costs start at $185 and Lyft offers a bonus for the same amount to drivers that exceed 70 rides per week.

Who Lyft Financing Is Right For

Lyft Express Drive is ideal for certain drivers including:

• Those looking to experiment with the rideshare business: Drivers can try renting a vehicle and seeing how much they earn with Lyft and whether it’s the right path for them.
• Drivers wanting to minimize the upfront costs of driving for Lyft: The upfront costs of leasing or purchasing a vehicle can be high. By renting a vehicle, new drivers can reduce the upfront costs of starting a rideshare business.
• People unable to qualify for other forms of financing: Qualifying to purchase a vehicle isn’t easy if you have a poor credit score or insufficient documented income. Renting a car through the Lyft Express Drive program is a far more accessible alternative.
• Experienced drivers needing a temporary vehicle replacement: As a driver for Lyft, your vehicle needs to undergo regular maintenance and repairs. During that downtime, renting a vehicle is a great way to maintain your income.

The Lyft Express Drive program adds to the choices that new and existing Lyft drivers have for earning an income and getting on the road. New drivers can experiment with the platform and get on the road with low upfront costs. Experienced drivers can also use Lyft Express Drive to get back on the road when their vehicle is being repaired or if they need a temporary replacement for a different reason.

Lyft Financing Costs

Lyft partners with Avis, Flexdrive, and Hertz to offer rental vehicles to drivers in major cities around the United States. Pricing starts at around $185 per week, and you could qualify for reimbursement of those costs by hitting 75 rides per week. There are no non-refundable costs; however, the security deposit required by each company to drive will vary depending on the vehicle you choose and your location.

Lyft Financing Terms

All the rental companies that partner with Lyft require weekly rentals, which can make it less flexible than some hourly options offered by Uber financing partners. All the rental companies include insurance, roadside assistance, and basic maintenance so you can focus on your fairs instead of maintaining your vehicle. You also won’t have mileage restrictions and the program is available in 42 major cities.

Lyft Financing Qualifications

Lyft Express Drive requires that all drivers must be at least 25 years old and offer at least 20 rides per week with a rental vehicle. This can be a barrier to entry for younger drivers like college students looking to earn some extra money while in school. Like the Uber car rental program, Lyft drivers also need approval before accessing the program.

What Lyft Financing Is Missing

Lyft offers drivers an exceptional level of flexibility and an opportunity to get on the road with low upfront costs but it isn’t a good long-term solution. With monthly payments often exceeding $1,000 besides fuel expenses and your time, there is not much margin left for drivers. If you can qualify to finance a vehicle through a personal or business loan, your monthly payments will be much lower.

How to Apply for Lyft Financing

Before applying for Lyft Express Drive you need to qualify as a driver for Lyft. This includes some personal information and can take a few days while Lyft verifies your driving record. After that, you can request a quote for your city and depending on the vehicle you select, start driving the same day. Many rental companies even offer to deliver the vehicle to your location, but this option isn’t available in every city.

Visit Lyft Express Drive

How We Evaluated Financing Options for Your Rideshare Business

Uber and Lyft drivers need financing to get new vehicles, pay for the upkeep and maintenance, and fund regular expenses like fuel. Operators of fleets also need to finance large fleet and garage expenses and working capital to keep their companies operating round the clock. These use cases need affordable, easy to qualify for, and fair financing solutions that provide flexibility to rideshare businesses.

We evaluated the best rideshare business financing options based on criteria that include:

• Driver use cases: Uber and Lyft drivers run a small business and need personal and business credit cards, working capital, vehicle financing, and personal loans to operate effectively. Larger fleets need long-term financing and revolving lines of credit to grow quickly in major cities.
• Overall cost: The cost of financing is a determining factor for any business. We chose options with a range of both upfront and ongoing financing costs that can fit the budget of individual drivers and entire fleets.
• Minimum qualifications: Qualifications for financing products include credit scores for personal loans. Business loans require substantial annual revenue and time in business. Finding the right fit can save you valuable time in applying and waiting for funding.
• Repayment terms: Even if you qualify for funding, you need to pay it back at a fair rate. Short-term loans are available for borrowers looking to minimize costs and solve a short-term need. Longer-term loans and revolving lines of credit give borrowers access to credit for unexpected expenses and large projects.

Some rideshare financing alternatives to Uber and Lyft include:

HyreCar: Best Auto Rental Alternative to Uber & Lyft Financing

HyreCar offers drivers an alternative with peer-to-peer rideshare vehicle rental that’s available nationwide. Rates can be lower than other rental companies and average from $25 to $40 per day. There is a mileage restriction on the vehicle and no roadside or maintenance provided. Applying takes minutes, and drivers can pick a vehicle and get on the road the same day.

HyreCar Daily Rideshare Rental Costs

HyreCar rideshare car rental costs include:

• Average daily rental rate: $25 to $40
• Average weekly rental rate: $180 to $250
• Security deposit: $200, waived if a credit card is used for payment

HyreCar is an inexpensive alternative for rideshare drivers looking to rent a vehicle and get on the road. Rates are set by other drivers, with weekly rates matching some of the rental companies. There are no upfront fees from HyreCar and drivers that list vehicles often provide discounts for longer rentals.

HyreCar Daily Rideshare Rental Terms

HyreCar rideshare car rental terms include:

• Minimum rental period: One day
• Insurance: Liability, physical damage, and motorist injury protection
• Mileage restriction: 250 miles per day, varies by owner
• Roadside assistance: None
• Basic maintenance: No, but cars are required to be in good shape
• Availability: Nationwide

HyreCar offers borrowers fewer features than many of the larger car rental companies, however, it does require that vehicles be well-maintained by owners. It also offers additional insurance coverage, which is comparable to car rental companies and it’s available nationwide. This last feature makes it a great option for drivers that are not in one of the major cities that have a Uber and Lyft rental program.

HyreCar Daily Rideshare Rental Qualifications

HyreCar rideshare car rental qualifications include:

• Age: At least 21 years old
• License: Valid in-state license for at least one year
• Rideshare account: Valid Lyft, Uber, or other Rideshare company account
• Recent major violation: No major violations in the last three years
• Recent minor violation: Up to two minor violations in the last three years

Drivers will have a similarly easy time qualifying to rent a car with HyreCar as they would with other car rental companies. In addition to being an approved driver with a rideshare company, drivers need a license that has been valid for at least one year in the state they are renting in.

What HyreCar Is Missing

HyreCar is a great peer-to-peer rideshare vehicle rental service that is available nationwide and offers a large variety of vehicles. However, it can be expensive for premium vehicles and somewhat restrictive with daily mileage. However, for drivers needing a rental car outside of the service area of major Uber and Lyft partners it’s the best solution.

HyreCar Reviews

HyreCar receives mixed reviews on the web from business owners, mostly due to the marketplace nature of its service. Business owners that left positive reviews were happy to earn extra money renting their vehicle out to drivers and generally had a positive experience borrowing a vehicle as well. Some negative reviews came from drivers that had a bad experience due to a dishonest vehicle posting.

How to Apply for HyreCar

Applying with HyreCar is simple and takes just a few minutes. Drivers can sign in and browse local vehicles in seconds. Once a selection is made, HyreCar verifies a few details, requiring a license, proof of identity, and rideshare credentials. Then, drivers are ready to pick up their vehicle from the owner and get on the road.

Visit HyreCar

Upstart: Best Personal Auto Financing for Uber & Lyft Drivers

Upstart offers a personal auto loan up to $50,000 for Uber and Lyft financing, which is perfect for individual drivers wanting to finance their first rideshare vehicle. You need a credit score of 620 or higher to qualify and rates start as low as 7.54% with three to five-year repayment terms, making it affordable on a rideshare income. The online application is simple, and you can get funding the day after you apply.

Upstart Personal Auto Loan Costs

Upstart personal auto loan costs include:

• Estimated APR: 7.54% to 35.99%
• Origination fee: None
• Prepayment penalty: None
• Other fees: None

An Upstart personal auto loan is a great option for Lyft and Uber financing that newer and independent drivers can qualify for. There are no origination fees and rates start as low as 7.54%, making it affordable if you are working for your rideshare business full time. For a $10,000 loan with Upstart, you will accrue daily interest between $2.05 and $9.85.

Upstart Personal Auto Loan Terms

Upstart personal auto loan terms include:

• Loan amount: $1,000 to $50,000
• Repayment term: Three years or five years
• Repayment schedule: Monthly
• Funding speed: Next business day

With Upstart your business can qualify for as little as $1,000 or as much as $50,000 to purchase a new or used vehicle. Although this is a smaller loan amount than other financing options, it’s affordable and should be sufficient for most entry-level vehicles. By financing your car instead of using the Uber car rental or Lyft Express Drive program you can save money and own your car.

Upstart Personal Auto Loan Qualifications

Upstart personal auto loan qualifications include:

• Minimum credit score: 620 (check your score for free)

Unlike business Lyft and Uber financing, you won’t need to have a certain time in business or annual revenue to qualify for funding. You will need a personal credit score of at least 620 with borrowers that have higher credit score able to qualify for the best rates and longest repayment terms. You will also need to provide your income, which most lenders use to determine the amount of financing you can qualify for.

What Upstart Is Missing

Upstart provides an affordable long-term personal Uber & Lyft financing option with quick funding speeds. However, the maximum loan amount is $50,000 and you need a personal credit score of 620 or higher to qualify. You may qualify for a larger personal loan with LightStream to borrow up to $100,000 as an alternative.

Upstart Reviews

Upstart has positive reviews around the web. Most reviews came from customers happy to receive funding quickly after completing the simple application process. The limited negative reviews we found were one-off cases of customers dissatisfied with not getting funded.

How to Apply for Upstart

Upstart personal loans up to $50,000 you can use for Uber or Lyft vehicle financing have repayment terms up to five years and starting rates of 7.54%. You can apply online in minutes and you only need a 620 or higher credit score to qualify. Upstart makes an approval decision the same day, with money transferred to your account as soon as the next business day.

Visit Upstart

LightStream: Best Personal Loan for Auto Repair Financing

LightStream offers a great personal loan that drivers can use for financing major auto repairs because of its low rates and long repayment terms. You could qualify to borrow up to $100,000 in funding repayable over as long as 12 years, with rates starting as low as 4.49%. You can complete the application online and have funds in your personal account as soon as the next business day.

LightStream Personal Loan for Business Costs

LightStream personal loan costs include:

• Expected APR: 4.49% to 17.49% (0.5% rate reduction if you use autopay, equaling 3.99% to 16.99%)
• Origination fee: None
• Prepayment penalty: None
• Other fees: None

Lightstream offers an alternative to Lyft and Uber financing for drivers that can qualify for a personal loan. Rates are low, ensuring that repayment is affordable and for every $10,000 you borrow with LightStream daily interest costs range from $1.23 to $4.79. A personal loan is a great way to finance major vehicle repairs if you don’t have enough money saved up to get back on the road right away.

LightStream Personal Loan for Business Terms

LightStream personal loan terms include:

• Loan amount: $5,000 to $100,000
• Repayment term: Two years to 12 years

The smallest amount you can borrow with LightStream is $5,000, so it isn’t a great financing option for an oil change, but replacing a transmission can have substantial labor costs. What made LightStream stand out is its long repayment terms. With two to 12 years to repay the loan, your individual payments will be lower, so you won’t need to work more hours or turn down smaller fairs to make payments.

LightStream Personal Loan for Business Qualifications

Lightstream personal loan qualifications include:

• Minimum credit score: 660 (check your score for free)
• Funding speed: As soon as one business day

You don’t need an established business or substantial revenue to qualify for a personal loan with LightStream. This makes it accessible to drivers that are using a personal car for their rideshare business. You will need a good credit score, of at least 660 to get funded, but that’s the only requirement. The entire application is also online and you can get access to the funds the next day.

What LightStream Is Missing

LightStream is a great personal loan with low rates and long repayment terms that drivers can use as financing for vehicle repairs or other one-time expenses. But it isn’t suitable for smaller Uber and Lyft financing, like vehicle maintenance and fuel expenses. For individual drivers organized as a business, a business credit card can offer more convenient capital with some rewards.

LightStream Reviews

LightStream reviews are mostly positive on our site and around the web. Positive user reviews noted the quick and simple application process. Some negative reviews came from users that LightStream did not approve for funding, but LightStream makes its minimum qualifications available to borrowers before they apply.

How to Apply for LightStream

LightStream has a quick and simple online application that can get you funded as soon as the next business day. You’ll need a personal credit score of at least 660 to qualify to borrow up to $100,000 in funding at starting rates of 4.49%. Repayment terms are long enough to make payments affordable, making LightStream the best personal loan for Uber or Lyft financing.

Visit LightStream

Personal Credit Card: Best Financing Option for Any Driver

Personal credit cards offer flexibility that any Uber or Lyft driver can enjoy. Not only are they easy to qualify for, but they often offer rewards for regular purchases like coffee and fuel while you work. Most drivers can qualify to borrow up to $15,000 but higher limits are possible and rates start as low as 15%.

Personal Credit Card Costs

Personal credit card costs include:

• Introductory APR: As low as 0% for up to 12 months
• Ongoing APR: 15% to 26%
• Annual fee: Up to $350
• Balance transfer fee: Up to 3% of the amount transferred

Personal credit cards you can use for your business are another option for Lyft and Uber financing. These credit cards carry the same rates and fees as business credit cards but don’t require that you are organized as a rideshare business to qualify. This opens the door for convenient financing you can use for fuel and personal purchases while on the road.

Personal Credit Card Terms

Personal credit card terms include:

• Credit line amount: Up to $100,000, but up to $15,000 is typical
• Payment schedule: Monthly

Although you can qualify to borrow up to $100,000, most personal credit cards have smaller credit limits than other forms of Uber and Lyft financing. However, this amount should be sufficient if you plan on paying for regular maintenance, fuel, and personal expenses like meals while you are on the road.

Personal Credit Card Qualifications

Personal credit card qualifications include:

• Personal credit score: At least 620 for the best rates (check your score for free)

A personal credit score of 620 or higher can help you qualify for the best rates and terms. However, there are some credit cards for low credit which can offer funding to drivers with poor credit or no established credit history. The amount you get approved for will also depend on your personal income level and as it increases, your total borrowing limit will also increase.

What a Personal Credit Card Is Missing

A personal credit card is a flexible Lyft and Uber financing solution that drivers can use for both personal and business expenses. However, it doesn’t offer a large amount of funding on its own so borrowers can take advantage of credit card stacking to increase their borrowing capacity. While there are high upfront fees, it is one way to access a large amount of capital using personal credit cards

How to Apply for a Personal Credit Card

Applying for a personal credit card for business takes minutes and can get you an approval decision instantly. You can get funding up to $100,000 although $15,000 or less is more typical. Rates start as low as 15% with rewards and perks like 0% interest for 12-months, miles, and cashback available with some cards.

Crest Capital: Best Business Auto Financing for Rideshare Businesses

Crest Capital offers experienced Uber & Lyft drivers financing up to $500,000 to purchase a new or used vehicle. There are no vehicle restrictions and you can qualify for an APR as low as 7%. You’ll need at least two years in business and a credit score of 650 or higher to qualify for funding. You can complete its online application in 30 minutes, with funding available the next day.

Crest Capital Business Auto Financing Costs

Crest Capital business auto financing costs include:

• Starting interest rate: 5%
• Estimated APR: 7% to 20% (Based on comparable lenders)
• Origination fee: First-month down payment and $275 administrative fee

Financing rates from Crest Capital are among the lowest we evaluated for rideshare businesses needing to get a loan for a vehicle. The low interest rates leave additional funding available for operations and other investments. If you finance a $10,000 vehicle, your business will accrue daily interest costs from $1.92 to $5.48 making it affordable at two or more rides per day.

Crest Capital Business Auto Financing Terms

Crest Capital business auto financing terms include:

• Loan amount: $5,000 to $500,000
• Repayment term: 24 to 72 months
• Repayment schedule: Monthly
• Collateral: Vehicle being financed
• Personal guarantee: Required
• Time to funding: One to three days

With Crest Capital drivers can receive up to $500,000 in funding, which is much more than most car costs. For some rideshare businesses, this may also be a viable solution for adding additional cars to their fleet. However, even if you can qualify for more funding, you can’t use the extra funds for working capital. Sometimes, Crest Capital may extend a loan for delivery and taxes, but you must document those costs when applying.

Crest Capital Business Auto Financing Qualifications

Crest Capital business auto financing qualifications include:

• Vehicle age limit: Any age vehicle
• Mileage limit: Any mileage
• Credit score: At least 650 (check your score for free)
• Annual revenue: No stated minimum
• Time in business: At least two years

Crest Capital earns its spot on our list of Lyft and Uber financing options for its lack of restrictions on the age and mileage of the vehicle you finance. It isn’t a good fit for new rideshare drivers, because you must be in business for at least two years to qualify, but it offers a great deal of flexibility, unlike some traditional auto financing options that will only fund newer and less used vehicles.

What Crest Capital Is Missing

Crest Capital offers drivers a great solution for financing a vehicle for their rideshare business complete with low rates, long repayment terms, and low vehicle restrictions. However, it only lends to businesses that have operated for at least two years. This puts its financing solution out of reach for new drivers, who should consider a personal loan for Uber and Lyft vehicle financing.

Crest Capital Reviews

Crest Capital reviews are positive around the web. Crest Capital customers that left positive reviews were happy with its quick application process and fair auto financing terms. Some negative reviews mentioned that customer service was unresponsive or that they could not qualify for financing.

How to Apply for Crest Capital

Rideshare businesses can complete an online application for an auto loan with Crest Capital in less than 30 minutes. Once you input all the required information and upload documents, you can get an approval decision as soon as the same day. Funding up to $500,000 follows in two to five days but is sometimes available the next business day.

Visit Crest Capital

Kabbage: Best Line of Credit for Rideshare Businesses

A Kabbage business line of credit is a great form of Uber or Lyft financing for rideshare businesses needing revolving credit for regular business expenses. You can use the credit line to finance repairs, upkeep, bills, fuel, and other expenses. You could qualify to borrow up to $250,000 in minutes on your mobile phone with repayment terms of six, 12, or 18 months.

Kabbage Rideshare Business Working Capital Costs

Kabbage business line of credit costs include:

• Interest rates: 1.5% to 10% per month (average fee is 4% for a six-month term and 3% for a 12-month term)
• Expected APR: 24% to 99%
• Origination or maintenance fees: None
• Prepayment penalties or termination fees: None
• Additional fees: None

Kabbage offers rideshare businesses a large line of credit that’s often used as a backup form of financing for emergencies or to fund working capital expenses for individual drivers and fleet operators. It charges rates on a monthly basis and repaying it early can save you money. If you borrow $10,000 with Kabbage, your daily interest costs will range between $6.58 to $27.12.

Kabbage Rideshare Business Working Capital Terms

Kabbage business line of credit terms include:

• Line of credit amount: $2,000 to $250,000
• Draw amount: $500 to $250,000
• Repayment term: Six,12, or 18 months (no prepayment penalties)
• Repayment schedule: Monthly
• Collateral: Blanket UCC filing on business assets
• Personal guarantee: Required
• Speed to funding: As soon as the next business day

A working capital business line of credit from Kabbage offers repayment terms as long as 18 months for each individual draw you make. You’ll receive less overall funding than other business loan options, but you can use the funding repeatedly because the credit line is revolving.

Kabbage Rideshare Business Working Capital Qualifications

Kabbage business line of credit qualifications include:

• Credit score: At least 550 (check your score for free)
• Minimum annual revenue: At least $50,000 (or at least $4,200 per month for the past three months)
• Time in business: At least one year

You must be in business for at least a year and be making $50,000 or more in annual revenue to qualify for funding from Kabbage. Its personal credit score requirement is among the lowest we evaluated for Uber and Lyft business financing options, making it accessible to smaller and less qualified businesses.

What Kabbage Is Missing

Kabbage is a great working capital solutions that businesses can use to pay for repairs, maintenance, or costs like fuel. However, it’s expensive for most borrowers and doesn’t offer any added benefits like rewards or cashback. If you need a smaller line of credit that can earn you some rewards, consider getting a business or personal credit card instead.

Kabbage Reviews

Kabbage reviews are positive on our site and around the web. Customers that left positive Kabbage reviews noted the convenience of its quick application and the responsiveness of its customer service team. Some negative reviews came from users that found this Uber or Lyft financing option to be too expensive, but Kabbage discloses its rates on its site.

How to Apply for Kabbage

You can apply for a Kabbage line of credit online from your phone or personal computer in a matter of minutes. You can receive an approval decision and credit line up to $250,000 the same day you complete the application. Once you accept the offer you can access capital the next day.

Visit Kabbage

Celtic Bank: Best Working Capital Loan for Rideshare Fleets

Celtic Bank SBA loans are best for large rideshare fleets needing financing to add vehicles, build out a garage, or purchase a local competitor. It offers long repayment terms up to 10 years and funding amounts of $350,000 up to $10 million, making it an affordable long-term financing solution. The wait for funding is long, taking up to 90 days, but the wait is worth it for low rates from 7.75% to 10.25%.

Celtic Bank SBA Fleet Financing Costs

Celtic Bank SBA loan costs include:

• Interest rates: 7.75% to 10.25%
• Expected APR: 8% to 11%
• Origination fee: 0.5% to 3.5%

The Small Business Administration (SBA) set the fees and interest rate limits for a Celtic Bank SBA loan. These rates, along with a partial guarantee from the government agency, make it the most affordable financing solution we evaluated for large working capital needs like financing a fleet of vehicles or buying property to establish a garage. The daily interest cost for every $10,000 you borrow with Celtic Bank ranges from $2.12 and $2.81.

Celtic Bank SBA Fleet Financing Terms

Celtic Bank SBA loan terms include:

• Loan amount: $350,000 to $5 million
• Repayment term: Up to 10 years
• Repayment schedule: Monthly
• Down payment: 10% to 20%
• Collateral: Some collateral required (loan doesn’t have to be fully-collateralized)
• Personal guarantee: Required
• Time to funding: 30 to 90 days

The long repayment terms up to 10 years and the large maximum funding amounts of $5 million make Celtic Bank the perfect partner to finance your major rideshare business expansion. However, you’ll typically be required to make a substantial down payment, and your business will need to wait from 30 to 90 days for funding, which includes several rounds of paperwork, before you have access to the funds.

Celtic Bank SBA Fleet Financing Qualifications

Celtic Bank SBA loan qualifications include:

• Credit score: At least 650 (check your score for free)
• Annual revenue: At least $100,000
• Time in business: At least two years

Qualifying for an SBA loan from Celtic Bank isn’t easy. You’ll need substantial experience and at least two years of operations in your business. You’ll also need a good credit score with a clean credit history and an annual revenue of $100,000 or more. This makes it difficult to qualify as a startup or newer business and is best for rideshare fleets that are expanding and need access to long-term growth capital.

What Celtic Bank SBA Fleet Financing Is Missing

Celtic Bank SBA loans offer the largest amount of financing with the longest repayment terms we evaluated for rideshare businesses. However, it’s difficult to qualify for and can take a long time before funding is available. Consider a working capital line of credit from Kabbage while you wait to get approved, or a more specialized financing option from Crest Capital if you only need funding for vehicles.

Celtic Bank Reviews

Celtic Bank reviews are typically positive on our site and elsewhere on the internet. These reviews often come from borrowers and customers that have a long and established relationship with the bank, often citing the range of financing options it offers. Negative reviews ranged in complaints from not getting approved, to customer service issues, or unexpected fees.

How to Apply for Celtic Bank Fleet Financing

Rideshare businesses can start an online application with Celtic Bank, but most of the application process will take at least two weeks to complete. SBA loans are complex and demand extensive paperwork before getting approved. However, you can get up to $5 million in working capital with repayment terms up to 10 years from 30 to 90 days after you start the process.

Visit Celtic Bank

Business Credit Card: Best Uber & Lyft Financing for Rewards

A business credit card is a great way to earn rewards for your businesslike cashback and miles while spending on regular business expenses. Many businesses can qualify to borrow up to $30,000 in funding and there are several credit card options to choose from. Most have rates from 15% to 26%, however, you may qualify for introductory rates as low as 0% for major purchases like repairs as well.

Business Credit Card Costs

Business credit card costs include:

• Introductory APR: As low as 0% for up to 12 months
• Ongoing APR: 15% to 26%
• Annual fee: Up to $350
• Balance transfer fee: Up to 3% of the amount transferred

A business credit card offers all the convenience of a line of credit, but it’s in your pocket and often also has additional benefits, like cash back for purchases. Rates are a little higher than some other financing options, but if the balance is repaid in the first 30 days, or within an introductory period there are no interest charges. If you borrow $10,000 your daily interest costs will range from $4.10 and $7.12.

Business Credit Card Terms

Business credit card terms include:

• Credit line amount: Up to $100,000, but up to $30,000 is typical for most businesses
• Payment schedule: Monthly

Although some businesses may qualify for as much as $100,000, most businesses typically receive $30,000 or less. This is still a great amount of funding for most Uber and Lyft drivers and can help finance fuel costs and auto repair costs while you earn fares to pay down the credit line. The revolving feature is also convenient for financing purchases repeatedly, without needing to reapply every time you want access to credit.

Business Credit Card Qualifications

Business credit card qualifications include:

• Personal credit score: At least 620, for the best rates (check your score for free)

Unlike other forms of Lyft and Uber financing for businesses, a business credit card does not have a minimum annual revenue or time in business. To get the best rates and rewards, you will need a personal credit score of at least 620, however, lower credit scores can potentially qualify. Your annual revenue typically determines the size of your credit line, so as your business grows, the credit you have access to can also increase.

What a Business Credit Card Is Missing

A business credit card is a great way to access funding that’s convenient, inexpensive, and simple to apply and qualify for. However, funding amounts typically don’t exceed $30,000 and it isn’t the best way to finance large projects. For a larger revolving business line of credit consider applying with Kabbage, which offers funding up to $250,000.

How to Apply for a Business Credit Card

Major banks and credit card companies offer business credit cards with quick online applications. Selecting the best business credit card for your rideshare business depends on your qualifications and the types of perks or rewards you can benefit from. Some great business credit cards for Lyft and Uber financing include fuel rewards or substantial cashback on regular purchases.

Benefits and Drawbacks of the Lyft and Uber Financing

Lyft and Uber financing for drivers is a great way to rent a car and get on the road quickly. It offers a low commitment option for more drivers with easy to meet requirements. However, it isn’t available in most of the United States, outside major cities, and it can be expensive if you use it as a long-term solution.

Benefits of the Lyft and Uber Financing

Benefits of Uber and Lyft financing include:

• Getting on the road quickly: With a rental from Uber or Lyft, you can get on the road and start earning fares the same day. The rental includes insurance, roadside assistance, and unlimited mileage making it easy to manage. This can be a benefit to new drivers wanting to experiment and existing drivers needing a quick replacement.
• No long-term commitments: With the Lyft Express Drive program you can get weekly car rentals and with Uber there are rental available for as little as a few hours. This is simpler than getting long-term financing and can reduce your costs if you only want to work for a week or two with the company.
• Easy to meet requirements: There is no minimum credit score, time in business, business revenue, or personal income requirement to rent a vehicle for Uber or Lyft. Instead, you must meet the age requirements and sometimes may need to complete a minimum number of rides while you have the rental car.

Drawbacks of the Lyft and Uber Financing

Drawbacks of Uber and Lyft financing include:

• High long-term costs: Lyft and Uber car rental programs offer a great short-term solution; however, for long-term drivers, it isn’t a great choice. The monthly costs with fuel can exceed $1,000 leaving most drivers that use the program long-term with little income left over.
• No availability nationwide: The car rental programs are available in many major US cities, but not most other places. This means that many drivers wanting to work outside of those areas will need to find an approved local rental solution, or use one of the other Lyft and Uber financing options we evaluated.
• Lack of vehicle stability: Driving for eight or more hours per day requires comfort and familiarity with your vehicle. With a weekly rental program, you may have to swap to a different vehicle, increasing the probability of accidents and resulting in a greater deal of discomfort for many drivers.

Other Ways to Fund Your Rideshare Business

Uber Financing and Lyft Financing Frequently Asked Questions (FAQs)

In this article, we covered Lyft and Uber financing options for drivers and rideshare businesses. Every financing situation is different and you will have questions we did not answer in the article. Below are some frequently asked questions for around the web.

Can you finance a car through Uber?

For a short time, you could finance a car through Uber. However, it discontinued the program and replaced it with car rentals. Now you can rent a car for a few hours or a few weeks and earn fairs without having to own a vehicle, offering more flexibility to drivers.

Can Lyft help me buy a car?

Lyft won’t help you buy a car directly, but earning money through fares on Lyft can make a car more affordable and allow you to qualify for financing sooner. If you need a car, you can also rent one through Lyft’s Express Drive program on a weekly basis. However, renting isn’t a great long-term solution.

Is renting a car through Lyft worth it?

Renting a car with Lyft is worth it if you want to experiment, only want to work during the holidays, or simply need a temporary replacement while your vehicle is in the shop. Otherwise, getting a personal or business auto loan is a less expensive option, if you can qualify.

Bottom Line

Uber and Lyft financing options range from approved car rental programs to personal and business funding options for auto financing and regular expenses. Each one is best for drivers in specific circumstances and can lower overall costs and get them back on the road. Selecting the right Lyft or Uber financing program can cause a large boost to your bottom line as a rideshare business.

Kabbage is the best business line of credit for rideshare businesses needing a flexible working capital solution. You can apply online through its mobile app and get approved and funded as soon as the next business day. The line of credit is revolving with borrowing limits up to $250,000 and monthly interest starting as low as 1.5% per month.

Visit Kabbage