Make sure you know you are pre-qualified before you apply an automotive repair 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 repair loan is a loan made to a borrower who needs to repair their vehicle. These loans are specifically designed to meet the costs associated with repairs, including towing, storage, repair and replacement parts. Given that a vehicle may break down from time to time, having an automotive repair loan can help defray the costs associated with repairing a vehicle.
These types of loans are not the same as a personal loan. The general qualification criteria of these loans are:
* Borrower must be at least 18, some lenders require 21
* Borrower must use the proceeds for repairs, towing or servicing
* The value of the car must be higher than the loan amount
* Credit of borrower must be within guidelines and borrower must demonstrate ability to pay the loan back
Added Benefit of the Automotive Repair Loan
You may have an extended warranty or other type of limited coverage for certain types of vehicle repairs. The coverage may require you to pay a deductible or other upfront cost in order for the repair to be covered. An automotive repair loan does not have a requirement for a deductible and can be made to cover the entire cost of the vehicle’s repair.
Automotive Repair Loan Terms
The amount that is made available for an automotive repair loan is typically between $500 to $2,500 dollars. The repayment terms of these loans are 12 to 24 months and the rate is a little higher than prime rates. Also, the amount of the loan should not exceed the value of the vehicle.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?