Make sure you know you are pre-qualified before you apply for a general automotive loan. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.
An automotive general loan is a debt that the purchaser of the vehicle incurs with specific terms and conditions. These terms and conditions are expressed in a loan agreement that is executed between the borrower and the lender. An automotive general loan can be made by a bank or auto financing company, including one that is owned by the car dealership. Most loans are offered on the spot to facilitate the vehicle purchase.
Other Purposes for an Automotive General Loan
An automotive general loan may also be used to refinance an existing auto loan. This arrangement can help a borrower take advantage of lower interest rates and help reduce their overall debt to make their payments more affordable.
Automotive General Loan Qualifications
In order to secure the best financing, a borrower needs to have a good credit rating. Good credit is important because it determines the rate that the loan will charge. An individual with a low credit score may end up paying hundreds of dollars more in loan interest costs than a borrower who has a good credit score.
Aside from a good credit score, a borrower must demonstrate the ability to pay back the loan. A lender will analyze income and debt to determine whether the borrower can pay back the loan. Credit is the lifeblood of your business, especially for small or new startup companies. BusinessFinance.com assists entrepreneurs to get started purchasing equipment, building your inventory and expanding your business.
Some important items to know to finance your are:
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?