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The Best Auto Loans For Small Businesses

Need a commercial vehicle loan for your small business? Learn more about our top options for auto loans.

    Chris Motola
  • Last updated onUpdated

  • Shannon Vissers
  • REVIEWED BY

    Shannon Vissers

    Lead Staff Writer

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

For many small businesses, vehicles are a vital part of operations. Whether it’s to deliver products to customers, drive sales, or commute from one location to another, businesses need reliable, dependable vehicles.

However, most small businesses don’t have the capital to purchase a vehicle with cash. A lack of capital is an even bigger problem when a business needs to buy multiple vehicles. The solution: obtain a business auto loan.

Read on to find out more about the different types of business auto loans, when you should consider a loan, and what to expect during the loan process. And if you’re looking to finance something a little heavier, you may want to see our picks for trucking business loans.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
BusinessLoans.com

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  • Term loans, STLs, LOCs, & MCAs
  • FICO: No minimum
  • APR: Varies by lender
  • Term loans, STLs, LOCs, & MCAs
  • FICO: No minimum
  • APR: Varies by lender

Visit Site

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National Funding

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  • Equipment financing, STLs
  • FICO: 600+
  • APR: 4.99%+
  • Equipment financing, STLs
  • FICO: 600+
  • APR: 4.99%+

Apply Now

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SmartBiz

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  • SBA loans, term loans, LOCs, & ERC refunds
  • FICO: 650+
  • APR
  • SBA loans, term loans, LOCs, & ERC refunds
  • FICO: 650+
  • APR

Apply Now

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Wells Fargo Equipment Financing

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  • SBA loans, LOCs
  • FICO: 640+
  • APR: Prime + 1.75%+
  • SBA loans, LOCs
  • FICO: 640+
  • APR: Prime + 1.75%+

Visit Site

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Bank of America Business Loans & Lines of Credit

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  • Term loans, LOCs, SBA loan, commercial lending, equipment financing
  • FICO: 670+
  • APR: 6.19+
  • Term loans, LOCs, SBA loan, commercial lending, equipment financing
  • FICO: 670+
  • APR: 6.19+

Visit Site

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Crest Capital

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  • Equipment loans & leases
  • FICO: 650+
  • APR: 5%+
  • Equipment loans & leases
  • FICO: 650+
  • APR: 5%+

Visit Site

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Read more below to learn why we chose these options.

Table of Contents

The 6 Best Auto Lenders For Small Businesses

The best auto lenders for small business offer accommodating terms and repayment schedules as well as competitive rates. The following lenders offer business and commercial auto loans that are suitable for a variety of small business needs.

 

BusinessLoans.com: Best Loan Aggregator For Auto Loans

BusinessLoans.com

Total Rating 4.0
Rates & Fees4.6

Services4.0

Eligibility Requirements4.1

Application3.0

Sales & Advertising Transparency3.6

Customer Service4.1

User Reviews4.4



Pros

  • High borrowing amounts
  • No minimum credit score
  • Quick & easy application process

Cons

  • Limited fee disclosures on website
  • Funding can take awhile to disburse

Why We Chose BusinessLoans.com For Best Loan Aggregator

As a loan aggregator, BusinessLoans.com allows borrowers to apply to its entire network of lenders with a single application. This efficiency also increases the chances of getting financing since, even if five out of six lenders turn you down, you're still getting at least one offer with your application.

This also allows BusinessLoans.com to be more lenient when it comes to credit ratings--there's no minimum to apply.

BusinessLoans.com Services

BusinessLoans.com works with lending partners to provide a wide variety of services, including:

  • Term loans
  • Short-term loans
  • Lines of credit
  • Merchant cash advances

Borrowing amounts range from $5,000 to $3 million.

BusinessLoans.com Rates & Fees

BusinessLoans.com’s rates and fees vary depending on the lender you are paired with.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com may still be able to connect you with funding even if you don’t meet all the requirements, but you’re more likely to get funding if you meet these baselines:

  • Time In Business: 6 months
  • Business Revenue: $100,000
  • Credit Score: No minimum

Get Started With BusinessLoans.com

Read our in-depth review

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National Funding: Best For No Downpayment Auto Loans

National Funding

Total Rating 3.7
Rates & Fees3.8

Services2.8

Eligibility Requirements4.3

Application4.8

Sales & Advertising Transparency3.8

Customer Service2.9

User Reviews3.7



Pros

  • Low credit score requirements
  • Discounts for repaying early
  • No collateral required
  • Fast & easy application process

Cons

  • Rates can be expensive
  • Some additional fees charged
  • Repayments required frequently

Why We Chose National Funding For Best No Downpayment Auto Loans

National Funding is one of the longer-running lenders in the alternative lending market. While much of National Funding's business is oriented towards short-term loans, it also offers equipment financing options well-suited to vehicle purchases. Best of all, there's no down payment!

National Funding Services

National Funding offers equipment financing up to $150,000 with terms of 2 to 5 years. National Funding also offers short-term loans.

National Funding Rates & Fees

National Funding’s equipment financing loans start at 4.99%. You’ll also pay an origination fee of 1-3%

National Funding Eligibility Requirements

To get equipment financing through National Funding, you’ll need to meet these requirements:

  • Time In Business: 2 years
  • Business Revenue: $250,000/year
  • Credit Score: 600

Get Started With National Funding

Read our in-depth review

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SmartBiz: Best For Online SBA Auto Loans

Total Rating 4.7
Rates & Fees4.8

Services4.8

Eligibility Requirements4.8

Application4.5

Sales & Advertising Transparency4.9

Customer Service4.9

User Reviews3.5



Pros

  • Rates tends to be inexpensive
  • No prepayment penalties
  • Website advertising is clear and informative
  • Customer service is helpful

Cons

  • Application process can be slow
  • Some additional fees charged

Why We Chose SmartBiz For Best Online SBA Loans

If you meet SBA borrower qualifications and need a $30,000+ business vehicle loan, SmartBiz is a great place to find a loan to purchase a commercial vehicle. SmartBiz works with SBA-approved banks to streamline the SBA loan application process, allowing business owners to apply online with minimal hassle.

Compared to other online lenders, SmartBiz takes a little longer because of the SBA paperwork and processing requirements. Still, using SmartBiz is faster than securing a traditional SBA loan from a bank. SmartBiz is also a highly reputable company that discloses all its terms and fees and doesn't tack on sneaky hidden fees or terms.

SmartBiz Services

SmartBiz offers the following products through its lending partners:

  • SBA loans up to $350,000
  • Bank terms loans up to $500,000
  • Lines of credit up to $150,000
  • Custom financing up to $500,000
  • ERC refunds

SmartBiz Rates & Fees

Interest rates for SBA loans range from prime + 2.75% to prime + 3.75%. Term loans have interest rates starting at 8.99%. Custom financing rates start at 6.99%.

SmartBiz Eligibility Requirements

To get equipment financing through National Funding, you’ll need to meet these requirements:

  • Time In Business: 2 years
  • Business Revenue: Varies by amount borrowed
  • Credit Score: 650+

Get Started With SmartBiz

Read our in-depth review

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Wells Fargo Equipment Financing: Best Bank For Lines Of Credit

Wells Fargo Equipment Financing


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Pros

  • Suitable for large businesses
  • Multiple types of financing available
  • Rates tend to be inexpensive
  • High borrowing amounts

Cons

  • Fair public reputation

Why We Chose Wells Fargo For Best Bank Lines Of Credit

Online lenders can offer a lot of speed and convenience to borrowers, but when it comes to excellent rates, banks still have the upper hand. Wells Fargo stands out from many of its competitors by being more accessible to small businesses when it comes to lending.

Wells Fargo Services

Wells Fargo offers SBA loans up to $6.5 million. It also offers lines of credit up to $500,000 to small businesses with terms of 1 or 5 years.

Wells Fargo Rates & Fees

Interest rates for SBA loans are generally a few points above prime. Lines of credit range from prime + 1.75% to prime + 9.75%.

Wells Fargo Eligibility Requirements

To get funding through Wells Fargo, you need to meet these requirements

  • Time In Business: 2 years+
  • Business Revenue: $1.50 in cash flow for every $1 borrowed
  • Credit Score: 640+

Get Started With Wells Fargo Equipment Financing

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Bank of America Business Loans & Lines of Credit: Best Bank For Small Business Auto Loans

Bank of America Business Loans & Lines of Credit

Total Rating 3.4
Rates & Fees4.2

Services4.4

Eligibility Requirements3.1

Application2.5

Sales & Advertising Transparency3.8

Customer Service2.5

User Reviews2.2



Pros

  • High borrowing amounts
  • Multiple types of financing available
  • Rates tend to be inexpensive
  • Long-term financing options available

Cons

  • Borrower qualifications might be hard to meet
  • Financing isn’t available in some states
  • Application process is slow and involved
  • Funds can take time to disburse

Why We Chose Bank Of America For Best Bank Auto Loans

Sometimes you just want a traditional auto loan with competitive rates. If you run a well-established business with excellent credit and need a loan for a vehicle weighing less than 2.5 tons, Bank of America's auto loans can be an excellent financing option. And if you do need to purchase a heavier vehicle, you can do so with a Bank of America equipment loan instead.

Bank Of America Services

Bank of America offers business auto loans in amounts starting at $10,000 with term lengths of 48 to 72 months. It also offers:

  • Business term loans
  • Lines of credit
  • SBA loans
  • Commercial lending
  • Equipment financing

Bank Of America Rates & Fees

Interest rates for Bank of America auto loans start at 6.19% APR.

Wells Fargo Eligibility Requirements

To get funding through Bank of America, you need to meet these requirements:

  • Time In Business: 2 years
  • Business Revenue: $250,000/year
  • Credit Score: 670

Get Started With Bank of America Business Loans & Lines of Credit

Read our in-depth review

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Crest Capital: Best For Financing Used Vehicles

Crest Capital


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Pros

  • Few additional fees
  • Long-term financing available
  • Fast & easy application process
  • Good customer service

Cons

  • Not available to some industries
  • Rates can be expensive

Why We Chose Crest Capital For Best Used Vehicle Financing

Crest Capital is an alternative lender specializing in business vehicle financing, providing an easy online application for business auto leases and loans. Unlike many lenders, Crest will finance used vehicles and private-party sales.

Crest Capital Services

Crest Capital offers equipment financing and leases up to $500,000, with terms between 24 and 74 months.

Crest Capital Rates & Fees

Crest Capital’s interest rates start at 5%. There is an administrative fee of $275 on all products.

Crest Capital Eligibility Requirements

To get funding through Bank of America, you need to meet these requirements:

  • Time In Business: 2 years
  • Business Revenue: Varies by amount borrowed
  • Credit Score: 650

Get Started With Crest Capital

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Loan Marketplace Review Methodology

We spend hours researching and evaluating each business loan marketplace we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

When rating lending marketplaces, we use a 39-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating.

  • Rates & Fees: 15% of the total star rating
  • Services: 30% of the total star rating
  • Eligibility Requirements: 15% of the total star rating
  • Application: 15% of the total star rating
  • Sales & Advertising Transparency: 10% of the total star rating
  • Customer Support: 10% of the total star rating
  • User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like the variety of lending products and partners available, terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the loan marketplace.

Read more about how we rate loan marketplaces.

Business Auto Loans VS Personal Auto Loans

Commercial (business) auto loans and personal (consumer) auto loans have similar structures as far as terms and fees. However, there are a few key differences between these two loan types.

Key Differences Between Commercial & Consumer Auto Loans:

  • Business auto purchases and financing fees are tax-deductible.
  • Business auto loans help you build business credit.
  • Purchasing a vehicle through your company will reduce your personal liability for the vehicle but will likely have higher insurance costs.
  • Personal (consumer) auto loan offers are based on your personal credit history; commercial vehicle financing companies also factor in your business credit score, time in business, and business revenue.

Typically, an established business that requires a vehicle will benefit from financing that vehicle through a commercial vehicle loan. If you have a small, newer business but good personal credit, you may have better luck securing a consumer car loan. Just make sure you consider all of the liability, insurance, and tax implications.

Business Auto Loans VS Leases

When evaluating funding options for business vehicles, there are two major options to consider: commercial auto loans and commercial auto leases. A business owner needs to understand the differences between the two before starting the application process.

Commercial vehicle loans are used to buy the vehicle outright. The borrower pays a set amount each month for the entire length of the term. This payment applies to the loan’s principal amount as well as interest paid to the lender for advancing the money.

The other type of financing is leasing. Leasing is more like a long-term rental. A lessee (in this case, the business owner) agrees to make monthly payments on the vehicle. The lease period will be for a set period, such as three years; during that time, the lessee can only drive the car for a set number of miles per year. The vehicle must be well taken care of and not damaged while in use.

You can read more about these differences in our loans versus leases article.

How To Get A Business Auto Loan

Once you find a business vehicle you want to purchase, you can start the process of obtaining a loan. To secure a business auto loan, you’ll need to gather your necessary business documentation, select a lender, and ideally do some comparison shopping before signing on the dotted line. 60 months is a typical repayment term for most auto loans. Most small business loans also require you to sign a personal guarantee as collateral.

For a rundown on what the process is like, check out our feature on how business loans work.

What Paperwork Do I Need For A Business Auto Loan?

The paperwork you need to submit to get a business auto loan will vary depending on the lender, but you might have to submit documents such as:

  • Proof of identity
  • Business license
  • Articles of incorporation
  • Employer Identification Number (EIN)
  • Tax returns
  • Cash flow statements
  • Bank statements

Is An Auto Loan Right For Your Business?

Auto loans can be a useful way for a business to finance vehicles needed for everyday operations. While current interest rates and prices are high, with a little legwork you can still find a good deal from the best small business lenders.

Looking for other options for financing equipment? Check out our best equipment financing companies.

Business Auto Loan FAQs

Can I get a business auto loan if I have bad credit?

Yes, from certain lenders. However, business owners with poor credit should expect to receive higher interest rates, which will increase the monthly payment amount. Higher down payments may also be required for borrowers with low credit scores.

Can I get a business auto loan without signing a personal guarantee?

Most of the time, you will have to sign a personal guarantee to get a business auto loan. In some cases, you might be able to avoid a personal guarantee if you have good credit.

Do I need to put money down to get an auto loan?

Not necessarily; some lenders may offer a “no down payment” option for the most qualified buyers. However, financing a vehicle with no down payment will result in higher monthly payments and a higher likelihood of your loan going “upside-down” (when you owe more money on the vehicle than what it’s worth).

Should I prefer an SBA approved lender instead of other lenders for an auto loan?

SBA loans tend to have lower rates and better terms compared to other lenders. Additionally, SBA-preferred lenders have more authority to make lending decisions, so the process of getting an auto loan from an SBA-preferred lender might be faster than other SBA lenders.

What is a good interest rate for an auto loan?

At current interest rates, a borrower with excellent credit should be able to finance a new car for a little over 5% APR.

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Chris Motola

Chris Motola

Senior Staff Writer at Merchant Maverick
Chris has been writing about small business topics since 2003. In 2015, he joined Merchant Maverick, where he writes about business financing, payment processing, and demographic trends in entrepreneurship. Chris has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.
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